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The Importance Of Globalization

Decent Essays

Having good historical context is very important in dictating the needs of a state. It is essential in knowing what certain trends and cultural roots a society may have. For example, Brazil received a huge boost in its economic development when globalization first occurred because they now became a central trading hub in South America. ‘Why is Brazil “Underdeveloped” and what can be done about it?’ states, “From 1913 to 1980, Brazil experienced sustained growth, interrupted only briefly in the early years of the Great Depression, at nearly two percent per year from 1913 to 1950 and nearly four percent from 1950 to 1980. In this period of nearly seven decades, Brazil had the fastest growing economy in the western hemisphere. Per capita GDP increased over eight hundred percent, from $678 in 1900 to $5570 in 2000, measured in 1990 dollars. Brazil’s economy gained on the U.S. economy, rising from only ten percent of US GDP per capita to over 20 percent.” This goes to show that clearly there is some benefit to having yourself involved in the world market which was created as a result of globalization. Although, it is also important to note that this also had an adverse effect on them later when their global market was no longer as valuable. This article later mentions, “Excessive centralism in the nineteenth century prevented municipal and state governments from borrowing abroad, or at home, to invest in needed infrastructure, such as road, ports, railroads, utilities, schools,

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