Global Economy Module
    Lesson 1 - What is the Global Economy?

    Lesson 2 - How does trade shape the global economy?

    Lesson 3 - Why are multinational corporations important in the global economy?

    Lesson 4 - What is the future of the global economy?
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Lesson 4 - Page 1 - What is the future of the global economy?

Objectives: In this lesson, your team will:

  1. Describe and explain the geography of wealth and power in the global economy.
  2. Evaluate the long-term consequences of globalization for people and places in different parts of the world.

General Tips: Here are a few suggestions that can help your team complete this Lesson together:

  • Click the icon to open a new window with instructions for completing the lesson's collaborative learning activities (listed as Step 1, Step 2, and so forth).
  • Your team should use the Group Discussion Board (located in the Communication area) to discuss questions that appear in blue boxes.
  • Important vocabulary terms are defined in the Glossary (located in the Documents area).
  • Complete this Lesson according to the schedule provided by your instructor. Doing so will ensure that your team learns together.
  • Elect leaders for each local group who can help coordinate the efforts of the entire team.

Is globalization a path to progress for the countries of the world?

The importance of globalization in fostering economic development and raising standards of living worldwide is hotly contested. The polarization of views on the issue can be seen in the following quotes. Whose thoughts are most closely aligned with your view of globalization?

    "Globalisation, then, is growth-promoting. Growth, in turn, reduces poverty. ...the liberalisation of international transactions is good for freedom and prosperity. The anti-liberal critique is wrong: marginalisation is in large part caused by not enough rather than too much globalisation." - Razeen Sally, London School of Economics

    "Agreements like NAFTA and the WTO force nations to respect contracts, which encourages responsible investment and, hence, economic growth. And, you see, economic growth creates a middle class, and a middle class, eventually, demands democracy. That is the story of the 20th century and, God willing, it will be the story of the 21st." - Jonah Goldberg, Editor, National Review Online

    "Personally, I do not believe that those [poor] people are victims of globalisation. Their problem is not that they are included in the global market but, in most cases, that they are excluded from it." - Kofi Annan

    "Globalisation is generating great wealth. This could be used to massively reduce poverty worldwide and to reduce global inequality. The world's richest 225 people have a combined wealth equal to the annual income of the poorest 47 per cent of the world's people. We must try to manage this new era, in a way which reduces these glaring inequalities and that helps to lift millions of people out of poverty." - Clare Short, UK Secretary of State for International Development

    "Globalization has helped reduce poverty in a large number of developing countries but it must be harnessed better to help the world's poorest, most marginalized countries improve the lives of their citizens, according to the report 'Globalization, Growth and Poverty: Building an Inclusive World Economy.'" - The World Bank

    "There needs to be a better balance between the role of markets and the role of government. Simplistic reforms based on free-market ideology don't work. The way that East Asia managed globalization, which combined an export-orientation with policies aimed at poverty reduction, worked even for the poor people. These countries did liberalize trade, but only as they created jobs." - Joseph E. Stiglitz, 2001 winner of the Nobel Prize for Economics

    "A permanent worldwide underclass is in danger of emerging, especially in developing countries, making it increasingly difficult to build the political consensus on which domestic stability, international peace and globalization itself depend." - Henry Kissinger

    "The evidence strongly suggests that global income inequality has risen in the last twenty years. The standards of measuring this change, and the reasons for it, are contested - but the trend is clear. The 'champagne glass' effect implies that advocacy of globalisation is not enough: international organisations need to move beyond integration into the world economy as the primary goal of policy." - Robert Wade, London School of Economics

    "Obscene patterns of poverty and inequalities amidst ostentatious wealth are thus the very stuff of our global system. They raise basic issues of morality and ethics for the prosperous areas of the world. We need to be asking whether the current inequalities are legitimate and just. Can something be done to achieve some degree of human decency?" - Robert Fatton, Jr. University of Virginia (PDF document)

    "Neo-liberal economic globalisation encourages the pursuit of profit regardless of social and environmental costs. It is associated with increasing levels of inequality, both between and within countries; the concentration of resources and power in fewer and fewer hands (resulting in an erosion of democracy); economic, social, political and economic exclusion; economic instability; spiraling rates of natural resource exploitation; and a loss of biological and cultural diversity." - Friends of the Earth

Determining who wins and who loses from globalization requires a geographic perspective. In this final lesson, your team will examine the geography of wealth and power in the global economy to reach a conclusion about the fairness of globalization for the world's people and places.