Globalization

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Globalization, by definition, is the integration and democratization of the world 's culture, economy, and infrastructure through transnational investment, rapid spread of communication and information technologies, and the impacts of free-market on local, regional and national economies. The golden words of late Dr. Mahbub ul Haq provides the true vision: "Globalization is no longer an option, it is a fact. Developing countries have either to learn to manage it far more skilfully, or simply drown in the global cross currents." Theoretically, • Globalization opens up markets and ensures competition; • Removes inefficiencies and leading to greater growth; • Ensures specialization takes place in areas of comparative advantage; •…show more content…
Broadly speaking, one is new institutionalising political economy and the second is new growth and new trade theory. The moral of the story is that industrialisation under globalisation for long-term economic development is too important an activity to be left to blind forces of FDI and openness. All three sectors, first (government), second (business), and third (civil society) must work together towards achieving national development objectives and strengthen national institutions. Each sector can contribute a set of competitive advantages. GDP GROWTH RATE: Pakistan’s experience also shows that in the decade of 1990s, significant trade liberalization was accompanied by a steady decline in the GDP growth rate, from 6.1% in the 1980s to 4.5% in the 1990s. The following table shows the ups and downs in the GDP growth rate of Pakistan. year 2006 2007 2008 2009 2010 2011 GDP growth rate 6.18% 5.68% 1.60% 3.60% 4.14% 2.36% (Source: world development indicators) GROWTH RATES OF GDP PER CAPITA: Gross Domestic Product (GDP) per capita is a useful aggregate measure of annual income per person. Data shows that in 1960 GDP

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