Globalization : The First Phase Of Economic Globalization

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Economic globalization: it is the international movement of goods, services, capital and people as well as an increased economic integration and interdependence of national, regional and local economies across the world. The three phases of globalization in the developing world: the first phase occurred during 1800-1914. It focused on the flow of capital from the West. The second phase in a broader scheme was focused around import substitution industrialization. Where developing countries restricted the imports in order to increase domestic industrialization. This period lasted from 1930 to 1980. The third phase includes a broader reintegration. This started during 1980s and continues to this day. This period has focused on a vast…show more content…
This involves cheap labor and raw material. The periphery depends on the technology and expertise of the developed world which are restricted to them. The theory was followed by World System Theory. According to WST the world’s economy is divided into three main categories based on expertise, raw material and labor. These categories include the core (developed countries), semi-periphery (semi-developed or semi-industrialized countries), and periphery (the underdeveloped countries who mainly supply the two other categories with raw and cheap material). Structural Adjustment Program: A set of economic policies (often market-oriented ones) that the IMF required borrowing governments to agree to implement before receiving an IMF loan. World Bank: The World Bank began as the International Bank for Reconstruction and Development (IBRD) after Bretton Woods and was originally focused on financing reconstruction after WWII. After the success of these programs, the World Bank began focusing on aiding the development of countries. Foreign Aid and official development assistance (ODA): state controlled resources that are loaned at the lenient terms or given by a government to (a) another government, (b) a nongovernmental organization (NGO), and or (c) an international organization like World Bank. Heavily Indebted Poor Countries (HIPCs): A set of measures enacted to extend debt relief to poor countries that had
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