Global Politics and Economics - Essay Example

The present generation lives under the international system based on the belief in global unity; which will eventually enable the world to organize its affairs from the view point of international character. This is an important achievement of twentieth century. This, however, does not mean that political world unity already exists or that we have anything like world government either immediately or in the near future. Capitalism has been successful in nurturing technological innovation, in promoting initiative, and in creating wealth and increasing poverty.

Many economists are agreed that in general capitalism can be a powerful engine for development. But, political interests and specific forms of capitalism can have different results. The monopoly capitalism of the colonial era for example was very destructive. Likewise, there is growing criticism of the current model of corporate and its version of globalization and capitalism that has resulted. There may indeed be merit to various arguments supporting global integration and cooperation. But politics, corruption, geopolitics, as well as numerous other factors need to be added to economic models, which could prove very difficult.

Economics is sometimes separated from politics and other major issues, theory can indeed be far from reality.There is an important difference between liberal politics and liberal economics. But this distinction is usually not articulated in the mainstream. The thinkers of the Enlightenment, such as Thomas Jefferson, Tom Paine, John Stuart Mill and Karl Marx never doubted that the future for every nation in the world was to accept some version of western institutions and values. A diversity of cultures was not a permanent condition of human life.

It was a stage on the way to a universal civilization, in which the varied traditions and culture of the past were superseded by a new, universal community founded on reason. (John Gray 1-2)With the Cold War over, politicians, economists and others have been promoting unfettered free trade and free market ideology, pushing it to an even wider international arena to facilitate international trade. Since the Cold War has ended, it is almost no surprise that today's globalization has come in the form we see it - that is where it would have been had the Cold War not got "in the way".

The World Wars were related to expanding trade avenues and holding on to them. Throughout the Cold War, there contained a global threat to market democracies: now we should seek to enlarge their reach. (Anthony Lake 71)The achievement of transformation is the overriding objective today of transnational organizations such as the World Trade Organisation, the International Monetary Fund and the Organisation for Economic Cooperation and Development. Free trade and free markets are essentially about making trade easier by allowing the market to balance needs, supply and demand.

Within a nation, it can be a positive engine for development. While