Low-Income Countries – Debt relief would be given to
the low income countries and the process should get going vigorously. It is
here that the World Bank has a vital role to play by working with governments
and ensure strong governance, effective judicial systems, and a robust
financial system. All these would help fight corruption. If these initiatives
are not taken, attracting foreign and domestic investment would be difficult
and thus globalization shall fall back upon us.
Middle-Income Countries – Statistically, 80% of the
world’s poor live in middle-income countries. These are the countries which
require utmost help for a strong financial stability. For that, the structural
and social reforms should be in place for the next stage of development. The
mission of tackling global poverty is the main agenda and the only important
tool to achieve overall development.
World Bank is focusing on :
•Secure long-term funding
•Give advisory services
•Create the right policy and institutional framework
•Address weaknesses in the social, structural, and
sectoral policies
Future of globalization and World Bank’s role
In next 25
years, the population of the entire world would go up by 2 billion to a figure
of 8 billion people. The 98% of the surge in population would be in the
developing countries. In 2008, more than 47% of the global population lived in
urban areas. By 2020, 4.1 billion, or 55% would be living in urban areas. The
World Bank is now aiming at maintaining parity in education and is also aiming
at achieving the gender equality goals.
We all must work towards building up a commitment
towards global poverty reduction. After all, the benefits of globalization
should be harnessed for delivering prosperity to the nations.
Globalization” refers to the growing interdependence
of countries resulting from the increasing integration of trade, finance,
people, and ideas in one global marketplace. International trade and
cross-border investmentflows are the main elements of this integration. In
addition, governments of developing countries often argue that recently
established industries require temporary protection until they become more
competitive and less vulnerable to foreign competition. Thus government soften
prohibit or reduce selected imports by introducing quotas, or make imports more
expensive and less competitive by imposing tariffs. Such protectionist policies
can be economically dangerous because they allow domestic producers to continue
producing less efficiently and eventually lead to economic stagnation. Wherever
possible, increasing the economic efficiency and international competitiveness
of key industries should be considered as an alternative to protectionist
policies.
A country that attempts to produce almost everything
it needs domestically deprives itself of the enormous economic benefits of
international specialization. But narrow international specialization, which
makes a country dependent on exports of one or a few goods, can also be more.
Think of examples of countries whose geographic location is particularly
favorable or unfavorable for their participation in global trade. Despite the
risks, many countries have been choosing to globalize their economies to a
greater extent. One way to measure the extent of this process is by the ratio
of a country’s trade (exports plus imports) to its GDP or GNP. By this measure,
globalization has roughly doubled on average since 1950. Over the past 30 years
exports have grown about twice as fast as GNP (Figure 12.1). As a result, by
1996 the ratio of world trade to world GDP (in purchasing power parity terms)
had reached almost 30 percent—on average about 40 percent in developed
countries and about 15 percent in developing countries.
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