The liberal and critical theory account of economic globalization - Essay Example

tional contexts beyond national boundaries, critics like Ellen Meiksins Wood have been arguing on the extent of interference practiced by these international institutions and its implications on national powers. According to Wood (2005), problems related to globalization, such as “the social injustices, the growing gaps between rich and poor, ‘democratic deficits, ecological degradation and so on” are the consequences of capitalism (pp. 14). Wood (2005) thus argues that “capitalism, whether national or global, is driven by certain systematic imperatives of competition, profit-maximization and accumulation, which inevitably require putting ‘exchange-value’ before ‘use-value’ and profit before people” (pp. 14). While an optimistic view of liberalism will justify this particular opinion, a critical view to the notion shall be much emphasized to argue on behalf of capitalist theorists, stressing on the negatives associated with the same (Kukoč, 2009).

The critical theory thus asserts that globalization has made it possible for a handful of economies and institutional members to enjoy the wealth and resources within their global “playing field”, leading to graver sufferings of weaker and vulnerable economies (Bohman, 2004). As the two theories, liberalism on one hand and capitalism on the other, argue on the positives and negatives associated with globalization, this essay will aim at examining both these standpoints to conclude whether globalization can be held responsible for the increasing inequality in resource allocation causing poverty or it actually functions in reducing such disparities.

Influences caused by international institutions will also be considered in the discussion henceforth to obtain a succinct understanding of the issue in concern. A nation might be said of having a comparative advantage if it can produce a particular good or service in a much efficient and cost effective manner as compared to other countries, which is only