Wednesday, October 1, 2014

Early Phase of Globalization: Phase III

First phase of globalization (1492-1850) was basically about state-funded voyages that would later on pave way for colonization. In Second phase of globalization (1850-1914), scientific development in means of communication and transportation speeded-up the pace of globalization. Finally the favorable ambiance created by first and second phase of Globalization turned out more encompassing and humongous in Third phase of globalization(1945-present).

On the dawn of 1945, the global economic reforms initiated by United States along with its allies of World War-II provided a framework for commencement of international trade and commerce. Economic cooperation were headed in a direction to prevent the recurrence of global economic crisis like that of 1930s.

The period from late 1940s to early 1970s is often referred to as Golden Age of Capitalism as this phase involved transfer of capital from the Colonial center to its large colonized states started. More global regulatory bodies were installed : World Bank, International Monetary Fund etc that facilitated global trade and played an intermediary role to settle the trade related disputes. Adding more, vital concepts of modern economy: deregulation of the corporate sector, the privatization of public enterprises and institutions, tax reduction, deregulation of capital flows etc flourished in this period. This would change the future of business within the county border and across the national frontiers.

The structure of economy then was quiet different in contrast to what it is at present. Banking sector then was characterized by control of politicians. But at present, banking sector has evolved as strong force for globalization and in most of the advancing economies it is independent and more powerful. Also on the dawn of third phase of globalization, state began focusing on expansion of welfare states, catering to the needs of the poor population, safeguarding the interests of business communities, etc.

Post 1945 saw a major structural change in global politics in which the proponent of capitalism, USA began a global superpower. Similarly global organization like UN acted as a beacon for effective global governance and peace keeping. Beside UN, the emergence of other ING-Os like Human Rights Watch, Amnesty International, Greenpeace etc focused to work on the issues which was difficult for the governmental bodies to work upon. Their operation and cooperation across the world strengthened the global cooperation, understanding and goodwill.


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