How and Why One Should Reform the Global Economy?

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Table of Contents

Introduction
Synopsis
Discussion
Conclusion
Works Cited

Introduction

On the topic of the global economy, many professionals engage in disputes because they find it difficult to develop an all-encompassing view. These disputes arise because even though countries are affected by economic changes in similar ways, each country experiences diverse conditions that affect their political stability and economic development. Despite these differences, it is impossible to ignore the fact that such factors as the global economic crisis, various types of discrimination and segregation, political changes, and economic openness have a significant influence on the global economy and highlight the need for its reform.

Ten years ago, the world was on the brink of a depression because of the financial crisis, and even the emergency measures undertaken in response to it failed to adequately address the issues that it raised. Even today, many professionals agree that demand is weak in comparison to the past. Even though some countries have managed to increase spending, the increase is often explained as a new rise in private debt that is believed to be unhealthy.

The financial reforms that were implemented seemed to resolve the crisis, but emerging economies have grown slowly and continue to face issues. Wolf, for instance, has stated that many reforms are still required to make finance safer (Lane). Many other people support this point of view and continue discussing the emergence of a new crisis, which suggests an unstable condition for the current world economy.

Many professional economists believe that there is a necessity to provide adequate social protection, guarantee universal access to food, and ensure fair access to the world’s resources in a global economy so that it can benefit a broad populace (Rosow). A similar perspective is considered by Klein and Mosley, who direct people’s attention to developing nations and the issues they face due to economic changes and globalization.

Synopsis

In her paper, Klein discussed the case of South Africa, focusing on the connection between limited freedoms and the way the country is run (107). She emphasizes that the country was adversely affected by whites and its native citizens were turned into a deprived population. They faced numerous inequalities and had poor living conditions, especially in comparison to those enjoyed by citizens of European descent.

Moreover, the native population faced discriminated at work, as their wages were much lower and they often faced violence. White supremacy did not allow black individuals to live normal lives. Their health conditions were also not good because of poor access to the services they required. These people had no right to vote, which prevented them from changing this reality for the better by democratic means. Nelson Mandela was the first person who managed to affect this situation. His radical views were concentrated on the fight for freedom and equality, and he facilitated the end of discrimination against blacks in South Africa.

Mandela joined the African National Congress (ANC), which provided him with an opportunity to share his democratic ideas with the public. Eventually he became the first black president and was in a position to ensure that South Africa supported its entire population. Mandela started the country on the path to economic transformation, and black individuals received the chance to gain both political and economic power. Even though attempts were made to keep these people out of the government, substantial improvement was made. Nevertheless, there were still victims of the state, and the ANC had to deal with both its debts and those incurred by the white government.

Many policies were developed and implemented in order to alter the life of black people for the better. The Freedom Charter was created as the first attempt to allow deprived populations to have the possibility to govern and take part in decision-making on topics that were significant for the population. The Freedom Charter urged the government to enhance the quality of housing and working conditions.

It provided for freedom of thought, ensuring that people have an opportunity to share their ideas and affect economic and governmental changes. Further, the Health and Safety Act was enacted. According to it, safety at work was a critical element that could not be overlooked. In this way, work-related injuries were minimized. The Employment Equity Act followed and reduced discrimination in the workplace.

It provided members of minority groups with a chance to receive higher positions and overcome unemployment. Women and people with disabilities were also give enhanced opportunities to find good jobs and reasonable wages. The Indigenous Act focused on land ownership and problems associated with sanitation and food distribution. South Africans’ new freedom of assembly provided black people with an opportunity to gather and express their ideas. In this way, they received an opportunity to promote social change. Liberal activists had the opportunity to represent the views of the entire population, which had a positive influence on people’s satisfaction.

In her paper, Mosley examines the political economy of globalization and its influences on countries, including developing nations (85). The author focuses on the influence of trade and financial openness on policymaking and its outcomes. In addition, she discussed the issue of downward convergence in national polities. A careful examination found that even though such an alteration was widely announced, it could not actually be observed.

Developed and developing nations appeared to be undergoing a convergence brought about by the pressures they faced. However, cross-national divergence was in fact occurring instead. Domestic institutions and their interests were significantly affected by the global economy, as now the global economy determined compensatory policies. It is true that in this way, cross-national differences were minimized, which had a positive influence on the equality of different populations. Nevertheless, many specific discrepancies remained, and many policy areas were not aligned to the desired changes.

It should also not be overlooked that various nations perceive the political economy of globalization in different ways. Global investment has had an enormous influence on developing countries because they have not had the stable economic conditions and have required additional funding in order to implement changes that can benefit their populations. They have also been at greater risk of default and have suffered more from the pressures of global capital markets.

As a result, developing nations have been expected to face a race to the bottom. While the internal determinants of national policies have remained predominant, it has been difficult to bring about desirable and necessary changes. Thus globalization continues to affect political decision-making and influence taxation, demand, and spending, affecting many nations’ economic condition. In the framework of economic openness, developing countries and their national economies are substantially affected by imports and exports and cannot develop further if the global economy fails to facilitate this process. Both internal and external factors must be considered when speaking about economic changes.

Developing initiatives to improve the global economy can be beneficial for all countries because of the influences the global economy has on each of them. Even the capabilities of national government are affected by economic globalization in the form of growing openness.

Discussion

The articles written by Klein and Mosley reveal that it is not possible for any country and its economy to remain entirely outside the influence of other economies, especially the global economy. This fact cannot be denied, because international relationships lead to contact between different countries, and this contact affects their decision making. For instance, international trade affects taxation, demand, and spending. It makes local businesses implement changes to cope with additional competition, as people fine new opportunities to acquire more products. As a result, foreign products and the changes they bring about can enhance the quality of life or worsen it, especially for deprived populations.

More attention should be paid to investment. Beyond the flow of imports and exports and the creation of economic advantage for a country, foreign investment allows nations to develop, offering them numerous additional resources that could not be obtained otherwise.

The condition of the global economy creates possibilities for helping developing countries. Taking into consideration that the global economy is still experiencing the aftereffects of the financial crisis that took place ten years ago, it seems clear that the global economy is not yet stable enough to ensure sustainable development and continuing benefit to different populations (Lane). Thus it is vital to alter the global economy to ensure that financial openness does not make some counties vulnerable because of changes made by others. It is vital to promote initiatives that focus on safety and stability.

On the basis of the information obtained from the readings, it seems clear that the global economic system has utilized racism in order to create a white elite that had numerous privileges in comparison to blacks. Even though many believe the issue of discrimination has been overcome today, the same tendency is often observed by American minorities, which indicates that the authors’ ideas remain relevant today.

The nationalization of major sectors of South Africa’s economy was a reform that was necessary to overcome this problem and to provide the country’s population with more opportunities to enhance their lives. The Freedom Charter facilitated this process significantly. Economic negotiations enhanced trade and counteracted economic balkanization. Imports and exports can provide countries with an opportunity to improve their condition for the better.

Even though many economic promises have not been realized, a plan for transformation was developed, and it can still be followed by current governments. The new economic order benefited deprived populations, but the South African stock market experienced a collapse. Even such distant events as the Second World War and the postwar economic rise of Western Europe played a role even as millions of South Africans remained in poor conditions, because no national economy can exist separately from all others.

Conclusion

On the basis of this information, it can be concluded that different countries are tightly connected to each other because globalization minimizes political boundaries and affects economies. In creating more open markets, world leaders have found an opportunity to develop trade and increase the availability of a range of resources to various global populations. However, the global economy is currently unstable and does not equally benefit all parties.

Economic openness and international political influences have affected some economies adversely, making them more vulnerable to adverse conditions faced by countries all over the world. Even though globalization is associated with increased opportunities, it reduces nations’ stability and makes them dependent on each other. It is vital to facilitate the development of developing countries because their current condition can have a negative influence on other nations.

Works Cited

Klein, Naomi. “Democracy Born in Chains: South Africa’s Constricted Freedom.” The Shock Doctrine: The Rise of Disaster Capitalism, edited by Naomi Klein, Vintage, 2007, pp. 233-261.

Lane, Allen. “How to Fix a Broken System.” The Economist. 2014. Web.

Mosley, Layna. “The Political Economy of Globalization.” Globalization Theory, edited by David Held and Anthony McGrew, Polity Press, 2007, pp. 106-125.

Rosow, Julian. “Reforming the Global Economy.” Sharing. Web.

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