The Three Areas of Globalization

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According to Thomas Friedman, “In Globalization 1.0, which began around 1492, the world went from size large to size medium. In Globalization 2.0, the era that introduced us to multinational companies, it went from size medium to size small. And then around 2000 came Globalization 3.0, in which the world went from being small to tiny.” It is not something one can pin point and define as a formal structure of the current international system. Globalization is a notion of the growing interconnectedness of the world categorized into three forms, cultural, political and economical globalization. Much like the quote by Thomas Friedman, globalization gives the conviction of the world being continually smaller and the pace of…show more content…
Stiglitz especially is very critical of the Washington Consensus. The consensus was between “the IMF, the World Bank, and the U.S Treasury where they decided on the “right” policies for developing countries…signaling a radically different approach to economic development and stabilization” (Stiglitz, 16). Much of the policies were made based on the problems in Latin America that had occurred because of government corruption. The three main economic policies countries had to adopt to gain financial help were fiscal austerity, privatization and liberalization. Fiscal austerity meant that the countries that borrowed money from the IMF or World Bank would have to raise taxes and cut welfare spending. The consensus also asks you to privatize companies rather than have state capitalism or social capitalism. The main consequences of these policies led the countries to loose economic sovereignty of their state and the people lost their welfare state. Liberalization of the market isn’t also the correct way to run a government as seen in Korea 1997. However, as Stiglitz mentioned in the book, it is not all globalizations fault but the fault of the person managing it and how it is managed. Globalization often has its cultural influences. Western media and shows are broadcasted worldwide. The spread of ‘Western
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