Globalization Is Not a Substitute for Development

Nowadays, developing countries all around the world face a great amount of disillusionment. Development as proposed by the IMF and the WTO has not had the positive effect it was supposed to have. In fact, the policies preached by these international actors have in times exacerbated economic problems leading to recessions. Countries, that have achieved higher economic growth throughout the years, have achieved this, not by following the dictates of the Washington Consensus exactly, but rather by applying them in an unorthodox fashion. Nevertheless in recent years globalization has become a replacement for a sound development strategy. In his article Trading in Illusions, Dani Rodrik (2001) argues against the line of thinking promoted by†¦show more content†¦The East Asian crisis does not only show the danger of rapidly liberalizing capital markets but that its results may be severely damaging for the economy. Liberalization, as explained by examples above, does not solve a country’s economic problems, it can even exacerbate them. In fact, â€Å"a sound overall development strategy that produces high economic growth is far more effective in achieving integration with the world economy than a purely integrationist strategy that relies on openness to work its magic† (Rodrik 2001: 59) Alternatives to Liberalization One may ask however how a country can develop its economy if it is not by integrating itself in the world market. Of course, integration in the world market is essential; however this must be done gradually and progressively. Take the example of South Korea. It â€Å"formulated a growth strategy which increased per capita income eightfold in thirty years, reduced poverty dramatically, achieved universal healthcare and went far in closing the gap in technology between itself and the more advanced countries† (Stiglitz 2002:94) It did so without much international investment and relying in its own saving and firms. Many South Korean companies are now known throughout the world and all of these because of good products and aggressive marketing (Stiglitz 2002). More importantly, trade liberalization only occurredShow MoreRelatedThe United Kingdom And British Labour Party Essay1462 Words   |  6 PagesIntroduction: This book is the substitute of the statements of two persons: †¢ Former Prime Minister of the United Kingdom and British Labour Party politician- Mr Tony Blair and †¢ An American politician Mr Bill Clinton. It was Published by Earthscan Publications in 2000.It was published first in United Kingdom. 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