1.

Globalization
Popular since 1990s

It is an economic integration

Interlinked market and economies

Harmonization of national polices

Global economy

Interdependency among economies

Minimizing the role of government

Global polity?

Impact on local values and culture

It is a transformation of:

 Information
 Ideas
 Technology
 Goods and Services
 Capital
 Finance
 People

Three major benefits of globalization:

 Enhances free market competition and forms an integrated market system which is beneficial
for all.
 It is inevitable
 It can benefit entire world including Third world economies by creating free democracies and
free trade and business opportunities.

Pros and Cons of globalization:

Prons: Increased competition creates efficiency and economies of scale leading to higher quantity and
quality products and boost living standards consequently.

Cons: Free movement of factors of production and products can harm labor in some economies due to
substitution of labor and domestic industries.

2. Governance
Relatively a new paradigm popular in the last two decades
Three actors:

 Government
 Civil Society
 Business Society

Economic, political and administrative authority

UNDP

WB

Economic, political and social institutions

Democracy, social equity, respect for human rights, rule of law

Well-functioning democratic political system

Socially disadvantaged group

Equitable legal framework

Abuse of power

State or non-state actors

Transparent and accountable government

Ideal concept

Difficult to achieve in its totality

Best interest of all stakeholders

Corporate governance

Remove state monopoly

China example

Quality institutions

Developed civil societies

Income Inequality

Ethnic diversity

Decision making structure

3. Private Sector
Part of the economy

Owned, controlled and managed by private individuals or enterprises

Individual and companies

Goal is Profit

Employment

Little or No government intervention

Public sector (Companies and Corporations)

Voluntary sector (charity and other non-profit)

Also called citizen sector

United States has more private sector

China has more public sector

4. Economic Development
Emerging economies become advanced economies

Country with low living standards become country with high living standards

Overall health, well-being, academic level of the general population improves

Population shift from agriculture to industry to service

Longer average life expectancy, improved productivity, higher literacy rate, better public education are
outcomes.

https://www.piie.com/publications/working-papers/global-trading-system-and-developing-countries-
2000