Authors

Dorina TănăsescuFelicia DumitruGeorgiana Dincă

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DOI: 10.5772/50188

From the Edited Volume


1. Introduction

The tendency of economic globalization has actually its roots in the trauma of the the depression before World War II. American political elites (Council on Foreign Relations) came to be exceptionally mindful to ensure that nothing comparable will certainly be repetitive (Korten 1995).

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Globalization deserve to be viewed as a method or system of acceptance and adherence to worldwide problems of mankind (Dobrotici 1999). The adhering to worldwide issues are taken into consideration pressing for mankind:

The food crisis and also underdevelopment,

Huge military expenses,

Inflation and financial - financial crises

Energy and also raw materials,

Rapid Population Growth and Environmental degradation.

In the vision the United Nations, the globalization of these problems over mansort is based on the uniqueness of the people economic climate and also it is connected to the reality that they happen in virtually all nations containing technological, social economical, political and also ecological common facets that reason propagation in the chain of the effects that need combined efforts to be fixed.

Globalization does not work-related by itself, however with economical - financial plans. These plans, as any type of subjective determinants, deserve to accurately reflect fact or might deviate from it (Korten 1995).

Those that develop and apply these plans can only be major economical and financial power centers of the civilization created by these establishments to serve their interests (FMI, BM, OMC, and so on.)

United Nations (UN) with specialized global institutions responsible for various segments of the globalization procedure need to act democratically, with transparency, accountability, impartiality and also respect for the legislation.

In this paper we current some critical points of watch about the steps and actions of these organizations and additionally proposals to redevelop them.

Effectiveness of actions taken by the UN is not at the level meant by the member nations. Many type of arising nations take into consideration that the UN have the right to aspire to end up being international legislator (Arbitrator of globalization), which deserve to impose a brand-new world order. Many type of economic troubles essential for the civilization wait to be fixed after miscellaneous international problems.

World Trade Organization did not solve the trouble of farming protectionism. Nordic countries in their plans block accessibility to their sectors to commodities originating in Southern nations. Also, the problem is aggravated by the farming excess of occurred nations. Coping with the globalization will not be feasible by boosting national protectionism.

Redeveloping the IMF calls for modernizing and also fostering of financial assistance and must be correlated through a new vision of the problems imposed on debtor countries, bereason a misguided plan will deepen the national economic troubles. Differences in between UNITED STATE and EU have to not be ignored.


1.1. Contemporary globalization – Conceptual determinations

In the present context, the modern economic situation is approached as a block. States cannot exist in isolation, cannot live exterior the netjob-related of relationships which are establimelted at all levels. Thus the civilization economic situation have to be viewed as a mechanism, as a whole composed of smaller sized or larger components, more or less occurred.

Economic globalization that characterizes today"s economic climate, outcomes mainly from transnationwide corporations and the huge enthusiasm of rebirth regionalism evident in Europe and also in various other parts of the civilization.

The term “globalization” has actually been developed to outline the realities of our human being, namely: the internationalization of industries for products and also solutions and also the development and proliferation of multinational service providers concerned with the advancement of in-depth financial, manufacturing, marketing and also management.

Globalization is the second largest component of the contemporary world economy, after creating the new financial order. From the perspective of the initially measurement, the new paradigm of financial order, involves shaping the two trends: business’s globalization and revolutionizing the indevelopment innovation.

The term “new economy” is frequently met, nowadays in economical studies. One of the many well-known definition is: "the brand-new economic climate is a vast concept that describes an economy where both the final product and its intermediate phases is composed in information and wright here digital indevelopment, uses a global accessibility to all information obtainable at one time. These new innovations are designed to potentiate the performance of conventional and typical company methods and also to facilitate the introduction of new procedures and also assets.Bari I., “Globalizarea Economiei”, Editura Economica, Bucuresti, 2003, p.53

The primary qualities of the brand-new economic climate ire around cooperation and also competition, the require for focusing on the customer demands, yet likewise enhancing intake of huguy knowledge and also imagination that results in a greater included value, brand-new jobs, the reduction of reresource intake, development of labor productivity.

Analyzing the new people order we cannot overlook the occult side of this truth that brings in the spotlight the army and economic actions of the primary power centers (the "Group Bildelberg", "Illuminati", "Masonry") that usage the tools of the international financial institutions, imposing their own rules in order to dominate humanity.

In other news, new civilization order is the intersection of 3 modern phenomenons: globalization, information revolution and also the economic battle.

”Globalization” is a term initially introduced in a (Webster) dictionary in the year 1961; 30 years later it became component of the everyday language as an obsessive word.

Professor Dinu Marin specifies the idea of globalization as “the process of functioning of the global economic climate, which, in the worldwide culture, has actually come to be able to produce global decision structures supposed to deal with worldwide problems”(Dinu, 2003).

10 myths have appeared in relation to this procedure, which the movie critics have transcreated right into truth. Rictough D. Mc. Carmich formulated the adhering to globalization myths ( McCormick & Richard, 2000):

It is a conspiracy of the transnationwide corporations versus the small countries:

It concentprices the power over the industry in the hands of those that straight a tiny variety of huge corporations:

The evil genius of globalization is the indevelopment technology;

Globalization implies “service providers escaping the manage of the law”;

Globalization determines the decrease in the variety of jobs;

Globalization undermines social diversity;

Thturbulent globalization, the job-related problems criteria decrease, bring about the employees being turned right into a sort of slaves;

Globalization destroys the environment;

Globalization entails the prosperity of the multinational companies at the price of the consumers and of the small companies.

The Amerideserve to Initiative on behalf of the economic globalization has actually been constructed on two premises:

Preservation of the existing capitalist system in the U.S., permitting the accessibility to many sources and international markets.

The spcheck out of the Amerideserve to economic design (consumer-oriented industry economy) global.

An essential problem of the modern culture is the report national - worldwide in the economic area. Globalization is seen as a moment (stage) in the process of globalization in which the primary actor is the multinational company, so as an expansion in the worldwide sector of manufacturing factors, better mobility of the resources, a considerable increase in international investment and also financial flows (check out fig. 1.)


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Figure 1.

Effect on globalization

Globalization is profitable for multinational corporations that combine in their own netfunctions global manufacturing devices. Ensuring the economic breakthrough moves to a new level "the worldwide sector economy" while the insurance of the wellness of nations stays the exact same within the national area.

Globalization of human being economic climate appears to lug on without rules in the last 20 years. The global unilateralism affirmed in the UNITED STATE in its international policy instantly after the collapse of the Berlin wall worried the elites in the previous socialist countries, currently members of the European Union.

It is essential that occurring nations arise in order to implement measures to minimize the negative results of a harsh globalization without rules that have the right to generate planetary crisis, social anarchy (check out fig. 2.)

Large multinationwide corporations see the State as a obstacle to globalization as an anachronic economic actor and also not as a regulatory authority and organisms of social cohesion.

State have to reprimary the primary actor on the human being stage, as globalization is not just an alibi for the assorted creates of imperialism. The State should remajor the area where democracy is worked out, the pillar of social cohesion and solidarity.

Also, globalization is not compatible through sustainable development. Globalization deepens the gap in between the rich and the negative (see fig. 3.).


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Figure 2.

Effects of globalizations on Respondent and familiy

Globalization is a complex phenomenon, raising a large number of difficulties as shortly as we attempt to discover and also provide it a unanimously accepted meaning. So, in time, the researchers and also the public’s opinion did not reach a widespread interpretation.

This is why we will continue by presenting a couple of meanings given to this term:

“A process of surmounting limitations created by background. For this factor, it is associated with erosion (yet not through disappearance) of the sovereignty of country states and also depicts a “detachment” of the industry economic situation from ethical standards and institutionalized relationships between the societies (Elmar Altvater);

The “quantitative and also qualitative intensification of the transactions that go over the limit applied by frontiers, concomitantly to their spatial expansion” (Ulaffluent Menzel);

“An raised interdependence and integration of the different world economies”. (Johannes Varwick);

The “intensification of international social relationships which attach distant localities in such a method that neighborhood happenings are shaped by events arising many type of miles amethod and also vice versa”. (Anthony Giddens);

“The biggest economic and social shift considering that the Industrial Revolution”(Dirk Messner/ Frany Huscheler);

“A process of boost in the variety of relations between societies and also trouble domains” (Johannes Varwick);

“The unchaining of the civilization market powers and the weakening of the state’s economic power” (Schumann Martin);

“The dynamics of globalization is thrust by economic forces, however its the majority of crucial aftermath have the right to be checked out in politics” (Klaus Muller).


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1.2. The evolution of globalization

In our opinion, the globalization have the right to be defined as a procedure of raising interdependence of country claims by the expansion of transnational ties in various spheres of economical, political, social and also social life. So, the standard criterion of defining globalization is the raising interdependence in the various sectors of the socio-political and economical life.

The concept of interdependence takes a variety of meanings depending upon the motivations of those that employ it.

For us, interdependence is a mutually useful partnership in between carriers in different nations and / or nationwide economic situations in a well characterized legal structure.

Robert Gilpin defines this tem as "a shared dependence, though not equal", not accepting many kind of of the so-called political and economical results. So, the benefits of interdependence are periodically expressed by zero-amount or nonzero amount.

When we talk around the development of globalization we think about the presentation of the the majority of significant moments in the background of this phenomenon. What could the advancement of globalization refer to?

In general economic terms, we could say that its purpose is the analysis of the history of the interstate commerce development, based upon steady organizations authorizing particular organisms to exadjust goods even more conveniently.

The first globalization era is often considered to be the period as soon as gold characterized the economic standard. Relying on the post-1815 British expansion and also the items exreadjust for cash, this first stage emerged in addition to the industrialization.

David Ricarexecute and J.B. Say are among those that, through their works, provided the theoretical framework essential for the development of this incipient duration of globalization. In their works on comparative benefit and also the general law of the markets, the 2 authors uphost the idea that nations will certainly trade effectively and that the discrepancies in between demand also and market on the market will certainly just be transitory and will readjust themselves.

About 150 years ago, David Ricarperform taken into consideration that the comparative benefit is an application of the principle of field of expertise and exchange between firms, regions, nations. In his opinion each individual, firm, area or nation will have to win if they specialize in the manufacturing of those goods and solutions costing bit and also if they exreadjust them for products costing more.

From a chronological perspective, the globalization process appears as follows:

Stage 1 – it is made up between 1400 and 1750, being referred to as “the major stage”, and witnesses geographic discoveries, emigration and the appearance of transcontinental trading extransforms.

Stage 2 – the interval 1750-1880, additionally known as the “incipient stage”; it is defined by the formation of unitary states and also the advancement of trading connections and also the signing of the first agreements in the doprimary of global trading relationships.

Stage 3 – consisted of in between 1880 and 1925, it is also called “the phase of development” when the made production arisen, the means of transport developed, the worldwide trading and the populace migration intensified and the multinational institutions took shape.

Stage 4 - 1920 – 1927 once the excellent state powers crystallize and also the global organizations and also establishments build.

Stage 5 started at the finish of the 20th century, being defined by the intensification of regionalization and integration, yet additionally by the solid advancement of multinational corporations.

“The initially globalization era” is divided into two distinct stages:

The first phase lasts until the end of the 1920s and also the start of the 1930s.

The second phase starts after 1930, lasting until the 2nd World War.

After the Second World War, a 2nd globalization age has been outlined. During this duration, globalization was guided by negotiations, during a first stage under the stipulations of the GATT (The General Covenant on Tariffs and also Trade) (Kegley, 2006).


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Figure 4.

What is Globalization & What Are Its Benefits?

This phase is much more “aggressive” than the initially, if we analyze the civilization organisms showed up instantly after 1949, when three excellent worldwide economic organizations took shape: FMI, BIRD and also GATT (watch fig. 4.)

Throughout the present duration, globalization is arising under the affect of three categories of factors:

The rise of the global exadjust location via the integration of new claims from South America, Central and Eastern Europe and Eastern Asia.

The advance of extransforms, especially in the domajor of solutions.

The globalization of the establishments able to combine their activities, particularly their research-advancement, supply and also trading, on a world range.

Globalization is a complicated procedure, which, as one can view from what has been previously outlined, has shown up its symptoms beginning a very long time back (Pattern, 2009).

In his work-related “Lexus and the Olive Tree”, Friedman approaches globalization as that create of battle that replaced the Cold War (Friedmale, 2008).

Both the Cold War and also globalization are systems identified by a unifying function, actually diametrically oppowebsite for each of them, and by a symbol: the wall in the situation of the Cold War and also the web for globalization. In the instance of the Cold War, the unifying attribute was the department in time, while for globalization this attribute is marriage. In 1975, the Cold War reached its climax: just 8 % of the people countries had actually liberal, autonomous regimes, identified by freedom of the sector, and also the direct international investments were, according to the World Bank, of $23 billion.

In 2009, the nations with a full democracy stood for 18 %, those via a degraded democracy - 29 %, hybrid regimes - 21 % and the rest were authoritarian regimes. In contradiction via the Cold War, globalization has actually its own dominant society, concretized in the ample extension of Americanization. Some financial experts divide the history of mondialisation right into 3 stages:

The internationalization regarded the advancement of the goods and services exports flows;

The transnationalization of the direct investment flows and the implantation of the large institutions abroad;

The implementation of the world production and also information netfunctions, resulting in a better combicountry and rationalization of the corporate activity in the worldwide economic area.

So, by the beginning of the 20th century, globalization ended up being chronic, engulfing more and more claims of the modern people. In the year 2000, the classification of the a lot of globalized economic situations, established according to the A.T. Kearey index, situates the following states on the initially ten areas (watch Table 1.):


According to the Globalization Index elaborated by Ernst & Yang (Ernst & Yang, 2010), in cooperation via the Economist Intelligence Unit (EIU) in the year 2010, Hong-Kong is the economic climate via the highest globalization level from a variety of 60 states under evaluation.

Singapore, the holder of the First Prize in 2009, is on the 3rd place, while Ireland moved from the 3rd position to the second, throughout simply one year. The location of Spain is unadjusted, by compariboy to the previous year, while Romania occupies the 30th place, being beat by Bulgaria yet in front of Italy, which holds the 31st rank, and in front of Greece, which is positioned on the 3fifth place.

This index procedures and also tracks down the performance of the 60 largest world economies in relation to diverse indexes from the adhering to categories: openness to the exterior, activity of resources, technology and concept exadjust, labor pressure mobility and social integration.

In the contemporary globalization era, alongside the classification of the a lot of globalized nations, tright here is also a hierarchy of the most globalized cities. In order to establish the positions in this optimal, five criteria are analyzed for each city subsequently, namely: economical task, humale capital, information exchange, cultural suffer and juridical teamwork.

On the level of the year 2010, the first positions were populated, in order, by: New York, London and also Tokyo. Except for these, on the initially ten positions, there were: Paris, Hong-Kong, Chicearlier, Los Angeles, Singapore, Seoul and Sydney. We can notice that four out of the ten the majority of globalized cities are situated in Asia. As much as the cities of Europe are pertained to, Moscow was situated on the 25th place, being preceded by London, Paris, Brussels, Berlin, Madrid, Vienna, Stockholm, Frankfurt and Zuwealthy.

The outline of the modern globalization is mostly shaped by the economical-financial crisis that has influenced the whole world, through few exceptions. In this case, globalization no longer appears as a phenomenon either so implacable or so irreversible or so Amerideserve to. In 2008, Thomas Friedmale shelp, of course talking about the USA, that “we no longer require a financial salvation package, we require ethical salvation”.

We must reestablish the basic balance between our sectors, morals and also regulations. I do not desire to kill the wild heart compelled to move capitalism forward, however I do not want to be torn acomponent by it either. Sure, tright here are some globalization aspects that are irreversible, such as the transnationality of technologies or communications (view fig. 5.)


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Figure 5.

Globalization map

Yet, there are likewise reversible facets, of an financial and also social nature. What Asia brings now to the forefront in these realities are models containing different rules, confirming when aobtain the syntagm “cash is king“. China is even more secure than the USA, and the tasks, the manufacturing and also the revenues are here currently.


1.3. The IMF and also the WB plans in the conmessage of the globalization of the contemporary economy

As presented in the last two decades, globalization has actually lugged to the countries of the human being even more disadvantages than benefits. For example:

unfair distribution of benefits of globalization, the number of losers being higher than the number of winners;

undermining the nationwide sovereignty by passing the manage of nationwide economies of the countries from the hands of governments in the hands of effective states, worldwide corporations and also international organizations;

deepening local and international instcapability as an outcome of economic crisis transmission from one nation to another.

The primary connections of the global economic climate with the global monetary-financial device outcome from the operational credit-financing operations, discount operations and liquidities regulation operations. The IMF and also the WB group are well known global financial-financial authorities, developed on the basis of global-scale concession, referred to as to govern the dynamics and balance of the worldwide financial monetary mechanism.

The absence of cohesion in the political decisions global and the challenge of the worldwide cooperation technique offered by the heterogeneity of the actors affiliated led the two organisms to go even more and also additionally from the factor of their creation, arriving by the finish of the 20th century not simply exterior the dialogue through the system of the United Nations, yet likewise exterior the dialogue with parallel organisms and also also through its very own members (Ekins & Tancrède, 2009).

The college of the International Monetary Fund was developed in 1945 through the provisions of the Bretton Woods agreement, as a specialized financial-monetary organism of the United Nations System, responsible at first for the great functioning of the Gold Exreadjust Standard.

The primary duties assumed by its standing refer to:

The proactivity of an international monetary teamwork and also the goal of assuring a harmonious advancement in the global trade;

The promotion of a stable exadjust rate system, while respecting the engagements assumed by its members;

Permanent assistance concerning the establishment and also the coherent functioning of the multilateral payment system established among its members;

Maintaining the climate of trust in the plans of the school, by permanently availing short-lived sources to the members in order to balance the current balances of payments;

Preventing and also diminishing the negative impacts determined by the unbalances able to impact the money members’ global balances of payments.

The central pillar of the World Bank Group, namely BIRD (the Internationwide Bank for Rebuilding and Development) was created in 1945 simultaneously through the IMF and became functional in 1947. The initial goal of BIRD was to assistance the post-battle reconstruction and later to promote the development of its member says.

The World Bank is oriented in the direction of economic assistance programs, development programs, and also structural adjustment programs meant to fight poverty. In relation to the World Bank, the IMF represents the primordial school as field of expertise and also duty spbelow in connection to the global financial monetary device – by its configuration and the arbitration of its functional design.

The IMF’s main attributes issue the certain processes of teamwork, assistance, indevelopment, supervision and treatment concerning the organizations of the worldwide monetary-financial mechanism.

With time, as both of these organizations got involved increasingly and steadily in finding remedies to alleviate the debts of the occurring nations, their activities partially overlapped.

So, in time, the World Bank shifted its attention from financing jobs to the program for economic reform; the IMF gave even more attention to the structural reform in addition to its typical task concerning the adjustment of the balance of payments.

So, the primary directions of activity of the 2 institutions refer to the mechanisms of macroeconomic stabilization and also to their straight involvement in worldwide financial troubles.

The confusions related to the delimitation of duties between IMF and the World Bank until 1999 are notorious. Following the IMF’s repeated failures to stabilize the crisis in SE Asia (1997) and the crisis in Russia (1998), the specialized political economic forums have actually drawn an alarm signal around the mismonitoring of their duties, considering at a certain minute also the alternative of their dissolution.

The insufficient or even defective involvement of these 2 international organisms into the global difficulties has actually attracted criticism and redevelop references. The IMF is referred to as to support - from the place of analyst and also consultant - the macrofinancial problem in relation to the quality of the monetary program and the framework of the balance of national payments from the perspective of the monetary and also budgetary policy of its member says.

The IMF is criticized for its industry fundamentalism and the absolutization of its monetary network-related, the governmental recipe for all the countries with different problems that have actually appeabrought about the financial aid tools. The IMF has given even more attention to the elements regarded inflation, balance of payments, exchange price policies, neglecting the facets related to the real political, economical and social indicators.

The low interemainder concerning the negative economic and social effects of the application of the principle of conditionalities worsened the results felt by the member says in the process of globalization of the capital flows. Today, the emerging countries no much longer trust the plans and also the strategies of the global organizations.

Beyond the certain useful laws of the market economy, in the strategy of the IMF or WB plans tbelow are multiple variables encompassing all the 5 important dimensions of the nationwide neighborhood or global balance, namely: the financial arrangement, the monetary-financial setup, the social arrangement, the political plan and also the social one.

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It has been noticed that the nations that assumed eventual sanctions by acting against the procedures compelled by the IMF managed to rehabilitate their economic situation a lot faster (e.g.: Malaysia), compared to various other countries that were technically subordinated to the monetarist networks of the IMF.

The financial crisis of Asia (1997-1998) began via the crisis of Thailand also and also then it generalised to all the nations in the region (South Korea, Malaysia, Indonesia, Philippines, Hong-Kong) (view fig. 6.)