The North American Free Trade Agreement

897 WordsMay 5, 20164 Pages
Developing countries tend to be located in the global south wile developed countries are located in the global north. In the 1980s neoliberalism took full swing and focused on an open economic market, and the creation of institutions. It created the Bretton Woods institutions in order to spread American values and promote economic growth through privatization of state owned enterprises. “The last 25 years has seen the most rapid, and most broad-based, growth in developing countries, ever” (Dervis, Kharas). Globalization has facilitated the spread of neoliberal ideology across the globe through an economic international trading system. For example, the North American Free Trade Agreement (NAFTA) with regional partners, such as Mexico, promoted an open approach to the economy and provided important benefits for both countries. Another example, was the creation of the World Trade Organization (WTO) that includes over a hundred countries. Globalization has been accompanied by terrorism and economic inequality. Many critics of globalization argue that the western model for development has failed to anticipate and act on the previously mentioned issues. There have been positive and negative outcomes from globalization and trade agreements. Some of the negative outcomes have been environmental degradation and inequality. There has been unsustainable growth partly because environmental degradation has been coupled with economic growth. The measurements of GDP and growth of income
Open Document