Globalization 19

Globalization:  
Globalization is the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure.

CAUSES OF GLOBALIZATION

The origin of globalization can be traced back till the 16th century when the West started to explore and discover for the new worlds and continents, bringing the English to India in form of East India Company, there first multinational was born for us and the rest is recorded history. The process of global economic integration was perpetrated at the behest of World War II and the first Great Depression, when the leaders of Britain and the US fumbled with the idea of reconstructing the war-torn world monetary system with a focus on favouring free of capital internationally, turn endure a liberal, capitalist world at the end of war to counter the shadows of Socialism and Marxism. To promote the new monetary world order, a conference was convened in July 1944, at Bretton Woods, New Hampshire, to create the world's most powerful institutions: the International Bank for Reconstruction and Development (the World Bank), and the Internationally Monetary Fund (IMF). With the development of international financial markets in 1970s and the debt crisis of developing countries, several developing countries opted for stabilization and structural adjustment programs, to qualify for the loans from IMF and WB. The first IMF/WB Structural Adjustment Loan (SAL) was given to Turkey, in the backdrop of appropriate market oriented policies, accompanied with conditionality’s, in 1980. These programs in a nutshell were aimed at liberalization of developing-countries markets. The reforms and conditionalities imposed laid basic foundation to open economies to steer the...