HANDS UP WHO VOTED FOR GLOBALIZATION?
Although transatlantic steamships and intercontinental wireless and telephone services existed in the early 20th century, most commentators assign the start of the recent phase of globalization to sometime in the 1970s. It was in 1973 that the United States under Richard Nixon broke with the Bretton Woods agreement on monetary exchange and the regulation of international trade.
Nixon also made an historic visit to China which led to increased trade between the two nations.
These political changes combined with developments in computing and the harnessing of digital communications led to the emergence of new international finance, monetary and derivative markets and the stimulation of traditional stock exchanges.
The United Kingdom’s Margaret Thatcher and the United States’ Ronald Reagan were instrumental in realizing Chicago School economic policies of free trade, privatisation and deregulation.
As a consequence of the above, multinational corporations , freed from the control of state governments, grew in power and increasingly internationalized their operations from the 1980s.
The period also saw the emergence of a single global market for money and credit involving considerable transformations of the size and structure of investment by financial institutions governments and corporations.
These changes have led to a territorial reorganization of economic activity and new concentrations of political and economic power.
Due to globalization, capital, goods and services can be moved across borders more easily, something supporters of economic liberalism claim is a positive development. However, this also facilitates money laundering and the provision of illicit goods and services by transnational organized criminals.
So, hands up who voted for this?