In an argument posted by McMichael (2012), the globalization project emerged as a turning point for the emergence of a world economic order. Despite the existence of mixed reactions regarding the implication of the globalization project, McMichael’s argument attributes the new direction elicited from the world capitalist order that emanated from the debt crisis. Accordingly, the benefits of the globalization project resulted in the strengthening of the world trade organization (WTO) and other world-based organizations, such as the World Bank. This further prompted the flourishing of the New Economic Order (NIEO) as pointed out by McMichael (2012) amidst the economic variation evidenced among the Third World countries. Moreover, the International Monetary Fund (IMF) and the World Bank assumed the roles of improving states’ social protections through empowering them to become the custodians of the global economy. However, Fung (2017) points out the negative impacts of the WTO that entailed the adoption of poor policies that undermined the efforts of farmers. For instance, the increase of cheap foreign agricultural products hurt the local farmers because they incurred losses after selling their local produce.
In another argument, McMichael (2012) points out the implications of the structural adjustment policies (SAPS) that was initiated by the IMF through the principles laid out by the neoliberal ideology. These structural changes, which involved lending policies were directed to poor countries so that they could catch up with those categorized under the First World countries (Vavrus, 2005; Zinkina, Korotayev, & Andreev, 2013) . Whereas these lending programs enabled various countries, for instance, Ecuador, Mexico, and Zambia address their education and public health sectors, they led to the breakdown of national economies (Killick, 1995). In addition to the creation of a global money market, the globalization project shifted from the initial mandate that was envisioned from a development perspective. Whereas the globalization project initiated development initiatives among the Third World countries, Fung (2017) explains that the ripple effect experienced involved thorough exploitation, which plunged these countries into massive debt and loans.
Delegate your assignment to our experts and they will do the rest.
References
Fung, K. Y. (2017). How Economic Dependency Was Created Through the WTO: A Case Study of South Korea. Journal of Developing Societies, 33 (4), 469-487.
Killick, T. (1995). Structural adjustment and poverty alleviation: an interpretative survey. Development and Change , 26 (2), 305-330.
McMichael, P. (2012). Development and social change: A global perspective. Los Angeles: Sage.
Vavrus, F. (2005). Adjusting inequality: Education and structural adjustment policies in Tanzania. Harvard Educational Review , 75 (2), 174-201.
Zinkina, J., Korotayev, A., & I. Andreev, A. (2013). Measuring globalization: existing methods and their implications for teaching global studies and forecasting. Campus-Wide Information Systems , 30 (5), 321-339.
