Main Challenges Facing the Contemporary World Economy

1454 Words3 Pages
bulb-icon

Recommended: Interconnectivity in globalization

The world economy is a dynamic, multifarious and complex entity. The contemporary economy can be distinguished from past economies simply because technology permits a greater degree of interdependence than has previously been possible. An integral facet of the 21st century economy is what Harvey (1989) identifies as ‘Time-Space Compression’, the phenomenon described by Larsson (2003, pg.89) as “The process of world shrinkage”. This “shrinkage” allows faster capital exchanges and a rapid movement of commodities. Such close spatial relations create a degree of economic dependence, as global interrelations have the potential to become far more entrenched than before. Although Graham (1998) regards space as having been ‘conquered’ by technology, this argument can be contested, as significant spatial inequality remains across local, national and international scales. Brandt (1980) accurately maps the ‘North-South Divide’ (Fig.1), observing large economic disparities between what he deems the ‘Global North’ and the ‘Global South’. Another unequal facet of the economic system is its governance, with many developed nations adopting neoliberal policies, whilst certain underdeveloped nations have less developed social rights and economic infrastructures. Hudelson (1999) argues that a movement away from classical liberalism and economic liberalism in conjunction with the adoption of neoliberal policy characterises the contemporary world economy. Viewing the global economy through Hudelson’s lens, one can observe the extent to which it is characterised by the policies that govern it. This essay will critically examine the extent to which economic inequality, interdependence and excessive deregulation are the main challenges facing the contemp...

... middle of paper ...

...iffusion of Regulatory Capitalism. The Annals of the American Academy of Political and Social Science 598 (21), pp. 12-32.
Pietrobelli, C. (2003) The globalisation of technology and its implications for developing countries: Windows of opportunity or further burden? Technological Forecasting and Social Change. Amsterdam, Elsevier. Pg. 861-883.
Powell, W.W. (2003) Neither Market Nor Hierarchy: Network Forms of Organisation. The Sociology of Organizations: Classic, Contemporary, and Critical Readings. London, Sage Publications. Pg. 315-317.
Turner, J. A. (2009) The Turner Review. London, Financial Services Authority.
Villalón, R. (2007) Neoliberalism, Corruption, and Legacies of Contention. Austin, University of Texas.
Wilson, W.J. (1985) Cycles of Deprivation and the Underclass Debate. In Social Service Review. Chicago, The University of Chicago Press. Pg. 541-555.

Show More
Related

  • The Original Underclass Analysis

    293 Words  | 1 Pages

    One of the most critical observations about the state of our sociological health is observed by MacGillis of the Atlantic’s article entitled “The Original Underclass”. That is that the social breakdown of low-income whites began to reflect trends that African American’s were primary subjects of decades ago such as unemployment, and drug addiction.

    Read More

  • The Origin Of Capitalism: Richard Biernacki, Richard, And Ellen Meiksins Wood

    889 Words  | 2 Pages

    Biernacki, Richard, and Ellen Meiksins Wood. “The Origin of Capitalism.” Contemporary Sociology 2000 : 638. Print.

    Read More

  • The Age Of Reform Summary

    2100 Words  | 5 Pages

    He argues that the realization of the influence that corporations had on the government caused this movement and that the short attention span of the nation led to the rise of a bureaucratic system to regulate it. His argument answers

    Read More

  • HOW CAN WE STOP THE ABUSE OF THE AMERICAN WELFARE SYSTEM?

    2284 Words  | 5 Pages

    In the 1960’s policymakers began to speak of creating equal opportunity for everyone by educating and rehabilitating the poor so they could compete (on an equal footing) in the market place. The policymakers thought that this would eliminate the artificial barriers imposed by the circumstances of birth. By the late 1960’s a “welfare rights” movement advanced the claim that welfare was not an act of public charity, but instead an entitlement of the poor (Danziger). This claim was the result of the Civil Rights, Women’s Rights and opposition to the Vietnam War movements and the corresponding changes in philosophy and moral outlook that these movements brought about. This “entitlement credo” was op...

    Read More

  • Poverty in the United States

    1697 Words  | 4 Pages

    In the 1960s, the government drew a poverty line which determined how the lower class may benefit from government aid. Since t “2008, th...

    Read More

  • The Devastating Effects of Neoliberal Policies

    1391 Words  | 3 Pages

    Neoliberalism, also called free market economy, is a set of economic policies that became widespread in the last 25 years. The concept neoliberalism, have been imposed by financial institutions that fall under the Bretton Woods such as the International Monetary Fund (IMF), World Trade Organization (WTO) and World Bank (Martinez & Garcia, 1996). One of the famous economists published a book called “The Wealth of Nations” in which he said in it that free trade is the best way to develop nations economies (Martinez & Garcia, 1996). He and other economists also encouraged the removal of government intervention in economic matters, no restrictions on manufacturing, removing borders and barriers between nations, and no taxes (Martinez & Garcia, 1996). The main goal of the economic globalization was to reduce poverty and inequality in the poorest regions. However, the effects of the neoliberal policies on people all over the world has been devastating (MIT, 2000).

    Read More

  • Social Class

    802 Words  | 2 Pages

    A social class that has been highly isolated from rest has been all those who live in poverty. Many people are aware of the issues involving poverty, yet they choose to do nothing expecting the government to solve the problem. What people don’t take into consideration is that his problem affects not only them, but also the country as a whole. According to Ron Smith escaping poverty has become more challenging than in past years due to the lack of employment opportunities and the expenses of family care. Smith also stated that the government has been working to find a solution for poverty or more less trying to find a way to prevent it from increasing. The government working through it with the help of policymakers; the w...

    Read More

  • The Globalization Paradox, by Dani Rodrik

    1441 Words  | 3 Pages

    In an interview with the Peterson Institute, Rodrik claims he is trying to create “a new narrative to shape the next stage of globalization, and to address the imbalance between the national scope of governments and the global nature of markets”, in many ways, this book does just that. As previously stated, Rodrik has diagnosed a “Political Trilemma of the World Economy”. The first point is that of Hyperglobalization, which is the ambitious agenda of “economic liberalization and deep integration” (17). In other words, it is a rapid and w...

    Read More

  • Critical Review of Peter Dickens' Global Shift: Mapping The Changing Contours of the World Economy

    1167 Words  | 3 Pages

    Throughout the chapters assigned, Dicken focuses on the patterns and processes of global shifts, on the forms produced by the globalization of economic activities and on the forces producing those forms. He builds his arguments around three interconnected processes, which in his view are the reasons for reshaping the global economic map. Those are Transnational Corporations (“TNC”), States, and Technology.

    Read More

  • Sociology and Globalisation

    2154 Words  | 5 Pages

    Many historians and sociologists have identified a transformation in the economic processes of the world and society in recent times. There has been an extensive increase in developments in technology and the economy as a whole in the twentieth century. Globalization has been recognized as a new age in which the world has developed into what Giddens identifies to be a “single social system” (Anthony Giddens: 1993 ‘Sociology’ pg 528), due to the rise of interdependence of various countries on one another, therefore affecting practically everyone within society.

    Read More

  • Negative Effects of Globalization

    671 Words  | 2 Pages

    ...o we can achieve our dreams in life: “we are now living in a world where time and space don’t matter anymore” just like J.Mittleman said. Globalization as we just learned is relative, whether it’s an opportunity or an exploitation depends on where you sit and how you look at the world. Kent, J., Kinetz, E. & Whehrfritz, G. Newsweek. Bottom of the barrel. - The dark side of globalization (2008/March24). David, P. Falling of The Edge, Travels through the Dark Heart of Globalization..Nov 2008. (p62)

    Read More

  • Social Network theory

    2456 Words  | 5 Pages

    Moliterno, Thomas (2011). "Network Theory of Organization: A Multilevel Approach". Journal of management(0149-2063), 37(2), p.1554-1578.

    Read More

  • The Global Economic Crisis

    664 Words  | 2 Pages

    In the late 2000s, the World suffered from a big global economic crisis which caused “the largest and sharpest drop in global economic activity of the modern era”, in which “most major developed economies find themselves in a deep recession”, according to McKibbin and Stoeckel (1). Because its consequences have a very big impact to the whole world, many economists and scientist have tried to find the causes of the crisis; and some major causes have been emphasized are greed, the defection of the free market system, and the lack of prudent regulation and supervision. This essay will focus on the global imbalances, one of the most important causes of the current economic crisis.

    Read More

  • Globalization Essay

    1112 Words  | 3 Pages

    Globalization, the acceleration and strengthening of worldwide interactions among people, companies and governments, has taken a huge toll on the world, both culturally and economically. It’s generating a fast-paced, increasingly tied world and also praising individualism. It has been a massive subject of matter amongst scientists, politicians, government bureaucrats and the normal, average human population. Globalization promoted the independence of nations and people, relying on organizations such as the World Bank and also regional organizations such as the BRICs that encourage “a world free of poverty” (World Bank). Despite the fact that critics can argue that globalization is an overall positive trend, globalization has had a rather negative cultural and economic effect such as the gigantic wealth gaps and the widespread of American culture, “Americanization”; globalization had good intentions but bad results.

    Read More

  • The Problems that Our World Faces Today

    804 Words  | 2 Pages

    The earth is considered as one of the most beautiful planets in the universe. It is the only planet in our galaxy that has enough water to support life. Unfortunately our planet is suffering due to many problems which should be solved before it is too late. The major problems that are facing our world today are population, pollution and animal extinction.

    Read More

More about Main Challenges Facing the Contemporary World Economy

Open Document