TABLE OF CONTENT Topic: .....................................................................................................................3 Introduction ..........................................................................................................3 Historical Development ........................................................................................5 Definition of Globalization ...................................................................................

7 Globalization and Its Characteristics ................................................................10

Improved Technology in Transportation and Telecommunications .................................................. 10 Movement of People and Capital ...................................................................................................... 10 Diffusion of Knowledge .................................................................................................................... 11 Non-Governmental Organizations (NGOs) and Multinational Corporations ................................... 11

Key players in the Globalization Process: .........................................................12 Is Globalization a Good Thing? .........................................................................13 The merits of globalization are discussed below. ..............................................13
Rapid Economic Development .......................................................................................................... 13 More of Investment ........................................................................................................................... 13 More of Employment ........................................................................................................................ 14 Increase Communication and Transportation Accessibilities ........................................................... 15 The Government becomes more efficient .......................................................................................... 16 New Inventions and Discoveries ....................................................................................................... 14 The Consumer Benefits..................................................................................................................... 15 Cultural linkage ................................................................................................................................ 15 Strengthening of Democracy............................................................................................................. 16 One World......................................................................................................................................... 16

The demerits of globalization are discussed below: ..........................................17

With the removal of trade barriers, structural unemployment may occur in the short term. ............. 17 Increased domestic economic instability from international trade cycles, as economies become dependent on global markets. ............................................................................................................ 17 International markets are not a level playing field ............................................................................ 17 Cultural Failure ................................................................................................................................ 20 Social Disruption .............................................................................................................................. 19

Spiritual Disruption .......................................................................................................................... 19 Gender Inequality ............................................................................................................................. 20 Pollution and other environmental problems .................................................................................... 19 Access to External Funds.................................................................................................................. 18 Pressure to increase protection during the Global Financial Crisis .................................................. 18

Developing Countries and Globalization ...........................................................21 Globalization and Guyana ..................................................................................25 Discussion and Conclusion .................................................................................26 References ...........................................................................................................28

Topic:
Critically analyze the merits and demerits of globalization with specific emphases on developing countries.

Introduction
Globalization has integrated the product and financial markets of economies around the world through the driving forces of trade and capital flows cross borders. One of the main debates on globalization is the effect of growing economic integration on income distribution. The antiglobalization movement argues that globalization is widening the gap between the haves and the have-nots (Mazur, 2000). The pro-globalization position claims that the current wave of globalization since the 1980s has actually promoted economic equality and reduced poverty (Dollar and Kraay, 2002).

The world is more interdependent now than ever before .Multinational companies manufacture products across many countries and sell to consumers across the globe. Money, technology and raw materials have broken the International barriers. Not only products and finances, but also ideas and cultures have breached the national boundaries.

Laws, economies and social movements have become international in nature and not only the Globalization of the Economy but also the Globalization of Politics, Culture and Law is the order

of the day. The formation of General Agreement on Tariffs and Trade (GATT), International Monetary Fund and the concept of free trade has boosted globalization.

Today, despite the perception of increasing globalization, the international financial system is far from being perfectly integrated. There is evidence of persistent capital market segmentation, home country bias, and correlation between domestic savings and investment. The recent deregulation of financial systems, the technological advances in financial services, and the increased diversity in the channels of globalization make a return to the past more costly and therefore more difficult. Financial globalization is unlikely to be reversed, particularly for partially integrated economies, although the possibility of that happening still exists.

Some of the issues that will be dealt with in this paper are the definition of globalization, examine and discuss the merits and demerits of globalization with focus on developing countries and conclude with a few remarks on the impact globalization have on developing countries.

Historical Development
Globalization has been a historical process with fade and flows. During the Pre-World War I period of 1870 to 1914, there was rapid integration of the economies in terms of trade flows, movement of capital and migration of people. The growth of globalization was mainly led by the technological forces in the fields of transport and communication. There were less barriers to flow of trade and people across the geographical boundaries. Indeed there were no passports and visa requirements and very few non-tariff barriers and restrictions on fund flows. The pace of globalization, however, decelerated between the First and the Second World War. The inter-war period witnessed the erection of various barriers to restrict free movement of goods and services. Most economies thought that they could thrive better under high protective walls. After World War II, all the leading countries resolved not to repeat the mistakes they had committed previously by opting for isolation. Although after 1945, there was a drive to

increased integration; it took a long time to reach the Pre-World War I level. In terms of percentage of exports and imports to total output, the US could reach the pre-World War level of 11 per cent only around 1970. Most of the developing countries which gained Independence from the colonial rule in the immediate Post-World War II period followed an import substitution industrialization regime. The Soviet bloc countries were also shielded from the process of global economic integration. However, times have changed. In the last two decades, the process of globalization has proceeded with greater vigor. The former Soviet bloc countries are getting integrated with the global economy. More and more developing countries are turning towards outward oriented policy of growth. Yet, studies point out that trade and capital markets are no more globalized today than they were at the end of the 19th century. Nevertheless, there are more concerns about globalization now than before because of the nature and speed of
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transformation. What is striking in the current episode is not only the rapid pace but also the enormous impact of new information technologies on market integration, efficiency and industrial organization. The animosity surrounding the debate on globalization requires that a holistic approach be adopted when analyzing this issue. Globalization is a prismatic phenomenon, which should be looked at in all its manifestations and from different angles.

Globalization has become an expression of common usage. While to some, it represents a brave new world with no barriers, for some others, it spells doom and destruction. It is,

therefore, necessary to have a clear understanding of what globalization means and what it stands for, if we have to deal with a phenomenon that is gathering momentum.

Definition of Globalization
Globalization is a term that has become very popular and used in many different contexts in the literature. The definition of globalization should be distinguished from terms like internationalization, regionalization and liberalization.

In most of the definition of globalization that is found in the literature, the process of globalization is seen as the breakdown of borders between countries, governments, the economy and communities. In the financial markets it is also the blurring of borders between different markets.

(O Brien 1992) also links the definition of globalization to geographical borders. OBrien distinguishes between national, international, offshore and global. He states that national transactions take place between businesses in the same country. International activities are activities that take place between different countries. International also means trade that does not take place in a national country. Multinational describes activities that take place in more than one country. Whereas global is a more advanced stage of integration that combines elements of both international and multinational between countries. A truly global activity does not know any internal borders. It also gives limited recognition because of the fact that the country is irrelevant when it comes to global activities.

(Redding 1999) defines globalization as the increasing integration between the markets for goods, services and capital. Reddings definition also links globalization to the breakdown of borders.

The United Nations defined globalization in a number of different ways. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labor.

Tom G. Palmer of the Cato Institute defines globalization as "the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result.

Thomas L. Friedman popularized the term "flat world", arguing that globalized trade, outsourcing, supply-chaining, and political forces had permanently changed the world, for better and worse. He asserted that the pace of globalization was quickening and that its impact on business organization and practice would continue to grow.

Ben and Hall posit that Globalization may be seen as a natural outgrowth of the economic policies applied under the IMF/World Bank, sponsored economic stabilization and structural adjustment programmes implemented during the economies of the developing countries towards increased integration into the global economy.

For purposes of simplicity, the term globalization means integration of economies and societies through cross country flows of information, ideas, technologies, goods, services, capital, finance and people. Cross border integration can have several dimensions cultural, social, political and economic. In fact, some people fear cultural and social integration even more than economic integration. The fear of cultural hegemony haunts many. Limiting ourselves to economic integration, one can see this happen through the three channels of (a) trade in goods and services,

(b) movement of capital and (c) flow of finance. Besides, there is also the channel through movement of people.

Globalization and Its Characteristics

Globalization is the process of increased interconnectedness among countries most notably in the areas of economics, politics, and culture. The idea of globalization may be simplified by identifying several key characteristics:

Improved Technology in Transportation and Telecommunications

What makes the rest of this list possible is the increasing capacity for and efficiency of how people and things move and communicate. In years past, people across the globe did not have the ability to communicate and could not interact without difficulty. Nowadays, a phone, instant message, fax, or video conference call can easily be used to connect people. Additionally, anyone with the funds can book a plane flight and show up half way across the world in a matter of hours.

Movement of People and Capital

A general increase in awareness, opportunity, and transportation technology has allowed for people to move about the world in search of a new home, a new job, or to flee a place of danger. Most migration takes place within or between developing countries, possibly because lower standards of living and lower wages push individuals to places with a greater chance for economic success. Additionally, capital is being moved globally with the ease of electronic transference and a rise in perceived investment opportunities. Developing countries are a popular place for investors to place their capital because of the enormous room for growth.

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Diffusion of Knowledge

The word diffusion simply means to spread out, and that is exactly what any new found knowledge does. When a new invention or way of doing something pops up, it does not stay secret for long. A good example of this is the appearance of automotive farming machines in Southeast Asia, an area long home to manual agricultural labor.

Non-Governmental Organizations (NGOs) and Multinational Corporations

As global awareness of certain issues has risen, so too has the number of organizations that aim to deal with them. So called non-governmental organizations bring together people unaffiliated with the government and can be nationally or globally focused. Many international NGOs deal with issues that do not pay attention to borders such as global climate change, energy use, or child labor regulations.

As countries are connected to the rest of the world they immediately form market. As more and more markets are opening up, business people from around the globe are coming together to form multinational corporations in order to access these new markets. Another reason that businesses are going global is that some jobs can be done by foreign workers for a much cheaper cost than domestic workers.

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Key players in the Globalization Process:

Multinational Enterprises that carry out business across national boundaries. The World Trade Organization (WTO) through which international trade agreement are negotiated and enforced. y The World Bank and the International Monetary Fund (IMF) which are means to assist the government in achieving development through the provisions of loans and technical assistance; and y National Government who together with these International Institution are instrumental in determining the outcome of Globalization.

y y

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Is Globalization a Good Thing?

There was heated debate about the true effects of globalization and if it really is such a good thing. Good or bad, though, there isn't much argument as to whether or not it is happening. Let's look at the merits and demerits of globalization, and you can decide for yourself whether or not it is the best thing for our world.

The merits of globalization are discussed below.

Economic Factors

Rapid Economic Development Globalization makes all persons sincere and active in their work. Being part of the game of competition, they will try to produce more and sell more. The basic principle of globalization is that each one will try to prove that he is better than others. As a result, economy will develop fast and the economic development of the country will be expedited.

More of Investment

Free economy will attract more of investment. Rich and developed countries will invest their capital and establish industries in poor and backward countries. As more money is poured in to developing countries, there is a greater chance for the people in those countries to economically succeed and increase their standard of living.

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More of Employment

More jobs will be created in developing countries. Individuals with skill and good education will be able to find employment in different industries and factories; some of them may open their own business.

Increase in the Efficiency of Domestic companies

The domestic companies, as a result of competition with multinational corporations, will be able to increase their efficiency and successfully compete at the international level. Global competition encourages creativity and innovation and keeps prices for commodities/services in check.

Technological Factors

New Inventions and Discoveries

As a result of-globalization, there takes place marked change in the nature and character of man. Man thinks of new ideas and searches for new paths. All this helps him make new inventions and discoveries. In turn, this contributes to qualitative increase in knowledge and new products. Developing countries are able to reap the benefits of current technology without undergoing many of the growing pains associated with development of these technologies.

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Increase Communication and Transportation Accessibilities

Increased flow of communications allows vital information to be shared between individuals and corporations around the world, results in greater ease and speed of transportation for goods and people.

Social Factor

The Consumer Benefits

Globalization weakens the monopoly business; as a result, the consumer has several choices in the market. The producers are required to produce better things to attract consumers. Today producer make products based on customers needs and wants.

Cultural Factor

Cultural linkage

As globalization breaks national barriers, it becomes easier for the culture of one country to reach other countries. As a result of exchange of values and ideas among nations, a new culture is likely to grown. The cultural division among borders has begun to weaken.

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Political Factor

Strengthening of Democracy

As a result of globalization, democracy will be strong and solid. Democracy mainly means political freedom, and political freedom has little meaning if there is no economic freedom. As globalization gives economic freedom to people, it helps them take active part in the democratic process.

The Government becomes more efficient

In countries where bureaucracy is generally slow, cunning and corrupt. The decision-making is unduly delayed. But, due to liberalization and globalization, the government is almost forced to change its style of work, and become more active and competitive. Governments are able to better work together towards common goals now that there is an advantage in cooperation, an improved ability to interact and coordinate, and a global awareness of issues.

One World

Globalization is the right step towards the establishment of one world. It breaks national barriers and binds all nations by the bond of friendship, cooperation and integration. In course of time, it is hoped, there will be one people, one government, and one world. Globalization will help materialize the ideal- 'the whole mankind is one.'

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The demerits of globalization are discussed below:

Economic Factors With the removal of trade barriers, structural unemployment may occur in the short term. This can impact upon large numbers of workers, their families and local economies. Often it can be difficult for these workers to find employment in growth industries and government assistance is necessary. Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor. Outsourcing, while it provides jobs to a population in one country, takes away those jobs from another country, leaving many without opportunities

Increased domestic economic instability from international trade cycles, as economies become dependent on global markets. This means that businesses, employees and consumers are more vulnerable to downturns in the economies of trading partners, eg. Recession in the USA leads to decreased demand for exports, leading to falling export incomes, lower GDP, lower incomes, lower domestic demand and rising unemployment. As global market opens corporate influence of nation-states far exceeds that of civil society organizations and average individuals which can result n mistrust between nations and civil society.

International markets are not a level playing field Countries with surplus products may dump them on world markets at below cost. Some efficient industries may find it difficult to compete for long periods under such conditions. Further, countries whose economies are largely agricultural face unfavorable terms of trade whereby their export income is much smaller than the import payments they make for high value added
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imports, leading to large Cash Available for Debt Service and subsequently large foreign debt levels. Access to External Funds Large Western-driven organizations such as the International Monetary Fund and the World Bank make it easy for a developing country to obtain a loan. However, a Western-focus is often applied to a non-Western situation, resulting in failed progress.

Pressure to increase protection during the Global Financial Crisis During the global financial crisis and recession of 2008-2009, the impact of falling employment meant that protection pressures started to rise in many countries.

Technological Factors

Developing or new industries may find it difficult to become established in a competitive environment

In developing countries where there are no short-term protection policies by governments, according to the newborn industries argument. It is difficult to develop economies of scale in the face of competition from large foreign Transnational Corporations. This can be applied to newborn industries or developing economies.
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Social Factors Social Disruption

Globalization is extending the gap between the rich and poor communities and also between the nations causing regional insecurity and a fear of exhaustion and extinction of resources and shift of manpower from less developed to more developed geographical area. Growing demands have also made people to grow rich by adopting unfair means leading to dissolution of families and communities, health and also in education. This has given rise to regional wars and international terrorism, crippling and self-criticism (Ehrenfeld, 2003). Spiritual Disruption The world is becoming materialistic and hence humane of human sprits is lost causing loss of environmental wisdom (Ehrenfeld, 2003).

Pollution and other environmental problems

Decreases in environmental integrity as polluting corporations take advantage of weak regulatory rules in developing countries. Most companies fail to include these costs in the price of goods in trying to compete with companies operating under weaker environmental legislation in some countries. There may also be a greater chance of disease spreading worldwide, as well as invasive species that could prove devastating in non-native ecosystems.

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Cultural Factors Cultural Failure Although different cultures from around the world are able to interact, they begin to meld, and the contours and individuality of each begin to fade.

Gender Inequality

The most critical of the issues related to womens poverty is the many forms of violence against women. One aspect of this deserves urgent attention is the trafficking of women and girls. During the past decade, this form of trafficking has become an issue of growing concern in this region, especially in developing countries. Women and girls who are victims of this international trade are at an increased risk of further violence, as well as unwanted pregnancy and sexually transmitted infection, including infection with the human immunodeficiency virus (HIV) which cause the acquired immunodeficiency syndrome (AIDS).

Political Factors

The current leaders and businessmen of the developing world particularly in the socialist, communist, dictatorial and poor countries protect their interest and are not keen on foreign investment in their economies. However, protect inefficient government and public sector employees

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They do not agree easily with globalization. They have a vested interest. Currently they need not efficient, skilled and need not have to compete with the best in the World.

Developing Countries and Globalization

The developing countries are those countries who share a common colonial history. While many of the developing countries have colonial histories they differ with respect to variation in the length of times since they won independence from their colonizers e.g. most Latin American countries won independence from their colonizers in the early 19th century and most of Africa after Second World War, their routes to independence vary thus producing different political alliances and political forces and or outcomes.

A close relationship is noted with respect to former colonies and an inability of those countries to develop economically, and thus to a great extent socially. The era of colonialism made Neocolonialism possible, where although counties have gained their formal independence they are still economically dependent on their formal colonizers. A monetary criteria was expressed in terms of gross national product per capita per annum to categories the developing countries that was used by the World Bank thus most of these countries are poor by international standards of the World Bank, the majority being low income or lower middle income categories.

Looking at the economic dimensions of globalization one can see that when it comes to receiving income, trade agreements are one of the main sources but it doesnt really benefit the developing countries. The trade agreements, such as (TRIPS) Trade Related Intellectual Property Rights,

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(TRIMS) Trade Related Investments Measures, the (GATS) General Agreements on Tariffs in Service and organization like the (WTO) World Trade Organization, further deprive developing countries. Globalization economically speaking entails the integration of world trade and financial markets, but given that developing countries are not really catching up with the advanced economies.

It is well known that countries opening up their economies to capital movements as the result of liberalization processes can benefit from these movements. The most striking advantage in this respect is that globalization enables capital to move from the developed countries, in which the return on capital is low, to developing countries in which the average return on capital is high. Capital movements of this type increase world product, and can thereby increase overall welfare.

Developing countries as a group have become more integrated into the world economy in the past twenty years as a result of the parallel processes of globalization and liberalization. There were also important changes in the allocation of capital flows among developing country regions that reinforced trends in trade. During the 1980s, Latin America and the Caribbean in particular were starved for funds from the private sector, leading to an increased role for the multilateral agencies. East and Southeast Asia, in contrast, continued to have access to private funds. In the 1990s, Latin America and the Caribbean regained access to private finance and Eastern Europe also became an active borrower, sharing the expanding pie with East/Southeast Asia. SubSaharan Africa and South Asia continued to draw primarily on official sources, but this resulted in to low and declining shares of total resource flows.

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Other insights about the nature of globalization can be obtained by noting with whom developing countries trade and from where investment comes. Based on data for the first half of the 1990s, a clear distinction can be made (Stallings and Streeck, 1995). Asian developing countries mainly traded among themselves, and with Japan, and a growing share of their investment also came from within the region. In Latin America, in contrast, trade and investment were heavily weighted toward the United States, especially in the northern tier of countries. In Africa and Eastern Europe, there was a focus on Western Europe.

What we referred to as the "tetrahedron" meant that different developing regions were tied into the global economy in different ways through their with main trading and investment partners. Since the respective industrial countries featured different "models" of capitalism, this led to somewhat different policies in the developing countries themselves. Growth rates of the industrial countries also differed. In the 1980s and early 1990s, these differences contributed to the great economic dynamism in the Asian region, but the collapse of the Japanese economy exacerbated the later problems of its Asian neighbors, and the high level of interaction within the region propelled the contagion effect once the crisis there began in 1997. The lagging U.S. economy, which had appeared to be a drag on Latin America in the 1980s and early

However, the advocates of globalization and Liberalization are finding it difficult to make good their promise to deliver long-term growth or to provide higher standards of living for developing countries. This point has been echoed by analysts, such as (Rodrik 1997), who argues that insufficient attention has been given to the impact of globalization and trade liberalization on wages and employment. This dissatisfaction of developing countries with their share in the

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benefits of globalization is becoming increasingly evident. At the turn of the century, there is general concern that the Washington Consensus is not delivering on its promises and that the developing world is not sharing in the benefits of globalization. This view was strongly articulated at the Annual Meetings of the Inter-American Development Bank in Brazil in March 2002. Small countries are unable to influence the imperatives of present-day negotiations or change the philosophy of the market. These demand that countries, regardless of size, embark on programmes of liberalization to be taken seriously in negotiations with large countries or within any economic bloc of which they are a part. Indeed, developing countries have found it is impossible to be integrated into the international environment unless their economic and financial systems are liberalized. Liberalization has become a precursor to globalization, which is a process with its own technologically driven momentum, so that liberalization too is being propelled forward. However, this process, though inevitable, is fraught with hurdles for developing countries and more especially for small countries.

In order to create better economic relations globally, international lending agencies must work with developing countries to change how and where credit is concentrated as well as work towards accelerating financial development in developing countries. There is a need for social respect for all persons worldwide. The Economic Commission of Latin America and the Caribbean suggests that in order to ensure such social respect, the United Nations should expand its agenda to work more rigorously with international lending agencies. Despite their title, international lending agencies tend to be nation-based. The ECLAC suggests that international lending agencies should expand to be more inclusive of all nations and they propose that there is a need for universal competitiveness. Key factors in achieving universal competition is the
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spread of knowledge at the State level through education, training and technological advancements. Economist, Jagdish Bhagwati, also suggests that programs to help developing countries adjust to the global economy would be beneficial for international economic relations.

Globalization and Guyana

Guyana is one of the most highly indebted nations. Yet, the theme of increasing poverty within this poor nation is not a part of the narrative of the proponents of globalization when they preach about its so-called benefits. As globalization intensifies, the gap between per capita incomes in rich and poor countries has widened (Cutter et al., 2000). Moreover, there is not any strategy that has yet emerged to help Guyana reap any benefits from globalization that is because globalization is about profits for the globalizers. Guyana continues to succumb to the dictates of the IMF and the World Bank.

In the guise of attempting to reclaim its debts, the World Bank and the IMF developed a Structural Adjustment Program (SAP) by playing an increasingly important role in regulating the economy of Guyana without pausing to consider the staggering adjustment cost in terms of soaring unemployment and social distress facing the country.

In Guyana from the 1980s, the trade liberalization schemes imposed by the IMF and the World Bank make sure that its forest and mining sectors are opened to exploitation by foreign investors. A number of foreign investors acquired logging and mining concession rights to operates in
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Guyana under the terms of a IMF agreement. Guyana now offers multinationals companies a tenyear exemption from all taxes.

By 1990, Guyana moved toward a free market economy under the direct guidance of the IMF and the World Bank, which provided for a three year Enhanced Structural Adjustment Facility (ESAF). After the ESAF ended in December 1993, it was again extended. In September 1996, the ESAF became the centerpiece of the IMF's strategy to help low income countries including Guyana, where the IMF and the World Bank control the government economic direction.

Like many of these poor nations, Guyana has adopted the Investment Plan initiated by the World Bank, which grants generous fiscal incentives to lure multinational corporations into the country. Guyana's drive for foreign investments was based, almost solely, on the liquidation of its natural resources namely its rainforest for commercial logging and mining.

Discussion and Conclusion

Based on the prospect of developing countries it can safely say that the demerits of globalization overweight the merits of globalization. From the discussion of the merits and demerits of globalization it is clear that countries and regions taking active part in the process of globalization are in a more advantageous than countries trying to resist the process. It is also clear that no quick fixes exist for development problems of developing countries. (Moore 2002) indicates that 1.2 billion people in the world are living on less than a dollar and another 1.6 billion of the world population is living on between one and two dollars per day.

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It can also argue that the impact of globalization on developing and developed countries differed. Although globalization has contributed to a significant increase in average economic growth, it has showed that this was not spread evenly between less developed countries. The richest quarter of the world population income grow six times while the poorest quarter income grows three times. It can also debate that the process of globalization has led to high level of unemployment in developing countries. (Brittan 1998) states that the demand for low skilled worker had declined due to technology development and the international demand for workers with skill has increased.

In conclusion, the developing countries face special risks that globalization and the market reforms that reflect and reinforce their integration into the global economy, will worsen inequality, at least in the short run, and raise the political costs of inequality and the social tensions associated with it. The risks are likely to be greatest in the next decade or so, as they undergo the difficult transition to more competitive, transparent and rule-based economic systems with more widespread access to the assets, especially education, which ensure equal access to market opportunities. During that transition, more emphasis on minimizing and managing inequality, on making the market game as nearly as possible a fair one, would minimize the real risks of a backlash. A backlash would be a shame, as in a bad twist, it would undermine the benefits that more open and more globally integrated economies and polities can deliver to all the people of the developing world. It is also argued that globalization offers a new opportunity for knowledge dissemination, but this does not mean that all the nations and institutions will equally benefit from it. On the contrary, it seems that the institutions that have
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managed to benefit most from globalization are those that already are at the core of scientific and technological advance.

Other commentator has argued that there is a very serious case not against globalization, but against the particular version of it imposed by the world's financial elites. The brand currently ascendant needlessly widens gaps of wealth and poverty, erodes democracy, seeds instability, and fails even in its own test of maximizing sustainable economic growth. The gap between rich and poor countries has widened considerably.

In order to create better economic relations globally, international lending agencies must work with developing countries to change how and where credit is concentrated as well as work towards accelerating financial development in developing countries. There is a need for social respect for all persons worldwide.

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