The process of Globalization originated as early as the 15th century with the evolution of capitalism, and subsequently spread itself to different countries across the world. In fact, the subjugation and exploitation of Third World countries like Latin America, Asia, Australia and North American white colonial settlements and Africa can be cited as the examples where the process of Globalization initially started.
From the initial stage, the process of Globalization had its roots in imperialism. Economies opened up for accumulation in the First World countries at the cost of exploitation of the Third World countries. At this stage, the nature of Globalization depended largely on the mentalities of the imperialist rulers. It was essential for the rulers to create distinctions among people on the basis of their social strata, This facilitated them to exploit these Third World countries by extracting raw materials, labor forces, and manpower for meeting their administrative and military requirements. This way, the richer countries continued to prosper while the poor nations were pushed more towards poverty.
The second step of Globalization centered on inter-imperial commercial activities. The mutual trade between the European nations, United States of America and of late, Japan formed a series of groups on regional level, together with the governing powers. This gave birth to cooperations and competitions in the commercial spheres, making the multinational corporations struggle for gaining control over the market shares. They also joined hands to exploit the markets of the Third World countries more effectively.
Foreign trade is an intrinsic part of Globalization. Exchanges of goods on an international level is closely knitted with the various classes of the social hierarchy as well as the commercial markets. It is this association which helps Globalization attain class character.
As far as the form of Globalization is concerned, it is essentially “cyclic” in nature, changing with various phases of national economic developments. In fact, Globalization derives its ascending quality from the capital forces, which defeats the farmers, the labor class and small political parties. This results in the conquest of states, where lifestyles are lowered and there is promotion of export strategies.
The development of the concept of of Globalization is closely associated with the beginning of class conflict and the constriction of profits during the formation of 'welfare state'. In fact, the process of Globalization is not a new phenomenon; Its historical cycle of rise, integration and decline is an outcome of the socio-political scenario of a particular nation.
The US dollar remains in a consolidative mode as participants await fresh incentives. The bulls have been denied fresh excuses to push the trend that has carried the US Dollar Index higher for an unprecedented ten consecutive weeks.
Professor at Columbia University. Recipient of the Nobel Memorial Prize in Economic Sciences in 2001 & the John Bates Clark Medal in 1979. Author of "Freefall: America, Free Markets", "The Sinking of the World Economy", "Globalisation and its Discontents" & "Making Globalisation Work".
Chancellor of the Exchequer of the United Kingdom from 1992 to 2007. Prime Minister of the UK between 2007 and 2010. Inaugural 'Distinguished Leader in Residence' at New York University. Advisor at World Economic Forum
Mario I. Blejer is a former governor of the Central Bank of Argentina and former Director of the Center for Central Banking Studies at the Bank of England. Eduardo Levy Yeyati is Professor of Economics at Universidad Torcuato Di Tella and Senior Fellow at The Brookings Institution.