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Hyper Globalization - Research Paper Example

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This essay describes that Rodrik is a proponent of globalization and says that it is an important facet in enhancing the global economy. However, he is against hyper-globalization which advocates the removal of national and local policies that impede the operation of free trade…
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Hyper Globalization
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Download file to see previous pages According to Rodrik it is impossible to have a situation where globalization flourishes while democracy and sovereignty succeed. Rodrik argues that where globalization flourishes, national policies are weak and where state democracy is strong globalization has no root in that country. Rodrik says that the choice is what is necessary for nations to choose either to succeed in the global integration or national interest. However, he argues a balance can be achieved like the Bretton Woods convention agreement. Rodrik Dani presents the Argentina scenario to argue that globalization and national politics are incompatible. Argentina economy collapsed after managing to pass the Convertibility Law which ensured that monetary mismanagement was checked to avoid loss of government fund. However, the law created unfavorable exchange rates that made investor turn down any investment opportunity in the country. The lawmaker had made it a political ideology to control the exchange rate and thus the ideas got support from every quarter of the nation. Nevertheless, the country bumped itself into the reality of the global economy. The advent of GATT and World Trade Organization brought an era that championed the benefit of globalization. These bodies strategized the functioning of the global market by drawing up laws that would check and improve trade between nations. According to Rodrik, the agreement of Bretton Woods, GATT and WTO refuted the national laws to accommodate free trade. The developed countries supported the idea of globalization and helped establish international financial institutions like the International Monetary Fund, World Bank and General Agreement on Tariffs and Trade (GATT). These institution initiated hyper-globalization, but with the subordination of national policies.  ...Download file to see next pagesRead More
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