Globalization: Quo Vadis? Lecture 20

History of Globalization Globalized North Atlantic – North America-U.K. and others Immigration patterns Movement of FDI Currency Matters Drop in transport costs – Time Period: 1890’s to 1930 – Why did it end: Depression and bad policy Halt Immigration, farm prices collapsed, Smoot Hawley tariff – Can it collapse again?

Modern Globalization How does it differ? Institutions – WTO, IMF, World Bank – Interdependence Capital flight Equalization of Wages Environmental Impacts Propriety Rights over Technologies

Evidence Pro-side – Poverty Incidence – China poverty fell from 30% to 10% – India poverty incidence fell from 51% to 26% – Rise from Group of 8 to Group of 20 More power in IMF and World Bank Problems: – Child Labour, women, culture, wage and labour standards,environment