Globalization: A Globalized Process

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II. GLOBALIZATION, A CONTESTED PROCESS A. Cyclical crisis and potential step back from the globalization process In the wake of the 20th century, the globalization process has enabled the opening of the financial markets worldwide, leading to the definition of a new economic order. Since the very end of the 19th century, many economists as Clement Juglar (1819-1905) [1], Nikolaï Kondratieff (1892-1938) [2], or John Maynard Keynes (1883-1946) have highlighted the existence of « economic cycles » that can be defined as an alternation of growth and recession periods punctuated by global crisis. Clement Juglar in 1862 was one of the first economists to stress the existence of an economic cycle of around eight years combining three different phases:…show more content…
Occupy Wall Street is a peaceful social movement that demonstrates in NY in 2011, denouncing abuses of financial capitalism and its associated social and economic inequalities. Joseph Stiglitz, in Globalization and Its Discontent [5] (2002) provides a pessimistic overview of the globalization. Even if he does not condemn globalization in its core and emphasizes the necessary regulatory role of the state to stimulate demand, he appears to be a fervent opponent of the measures taken by the international institutions that are leading to an increase of the global instability and poverty and to a drop in the global growth. Concerned by globalization, they are fighting for democratic principles, such as human rights, fair trade or sustainable…show more content…
The way in which goods and services are traded today, especially by MNCs (multinational companies), does not always respect the rules imposed by governments and international institutions. MNCs tend to seek only their own interests neglecting interests of the society. This is a real problem for the weaker players (emerging countries, small businesses, citizens) as they don’t have other alternatives and are subordinated to the rules imposed by MNCs. It is in this perspective that Paul Krugman stresses out the cooperative nature of free trade in Market Structure and Foreign Trade [8] (1985) whose primary virtue is to avoid the confrontation of nations, but not to achieve a global balance and a sustainable development everywhere. Many economists today agree that globalization reinforces the responsibility of States. Governments must not buckle under the pressure of multinationals, even if the pressure exerted is high. These constraints test the capacity of governments to implement new policies and sometimes oblige them to promote anti-globalization ideologies (such as in Cuba, Venezuela). This increases the risks of nationalism, control of capitals, religious fanaticism, violence, etc. Globalization became an instrument that public authorities use to execute deregulation policies, and on the other hand they created the “myth of globalization” in a world, which is still

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