The Intellectual and Institutional Development of Globalization Research Paper

The Intellectual and Institutional Development of Globalization - Research Paper Example The states now share center stage with international entities like the World Bank, International Monetary Fund, and World Trade Organization. Treaties among states create these international organizations. The WTO, World Bank, and the IMF have been main players in the formation and managing of the modern world economy. These financial institutions have become major targets of the anti-globalization bodies. They are resented and are seen as imposing Western capitalism on unstable states without monitoring the social impacts of their activities (Zweifel, 2006). There are concerns among many countries over their economic sovereignty. Sovereignty is defined as the complete and exclusive control of all people and property within a territory. Key aspects of power, be it political, ideological or economic must be focused within the nation-state. Globalization has challenged the pre-eminence of nation-state, the mounting presence, and increasing responsibilities of non-nation-state actors in overall governance. Economic power becomes decoupled from the nation-state and is, therefore, essential in the progress of 21st century universal control. Global organizations such as the World Trade Organization (WTO), World Bank, and International Monetary Fund were developed to promote post-war reconstruction and economic development. Economically stable governments and corporations advocate for neoliberal policies and free-market solutions of international trade and debt-based finance. These are considered as the routes to poverty cutback support the functions of these organizations. Within the aggressive universal framework, third world nations are left with little choice other than to conform to the pre-set neoliberal program. Consequently, these states are often left with a weak economy and mounting debt. According to Peet (2003), the aim of International Monetary Fund (IMF) is to guard international fiscal stability, particularly by keeping a cap on inflation. This is achie ved through pressuring countries to limit public spending. Furthermore, it maintains fiscal stability by making disbursements to nations with balance of payment issues, stimulates growth and employment. Such countries are granted loans and credits to settle their debts and readjust the adopted economic policies so that they are not exposed to further financial crises in the future. Each year, the IMF sends economists to each of its member countries to assess individual nation’s economic condition. The economists examine macroeconomic conditions, exchange rate, monetary and fiscal policies, and other related policies, such as trade policy, labor policy, and social policy. The aim of this research is to give an external check on state’s fiscal decisions that might have an impact on the global economic system. WTO was formed in 1995 and acted as a forum for negotiating international trade agreements. Additionally, the organization aims to lower tariffs and non-tariffs bar riers in order to increase international trade. The World Bank original mandate is to provide long-term loans for reconstruction and fund multimillion-dollar infrastructure projects in developing countries. The loans are given in phases to make sure that the borrowing nations move forward with the development reforms. Loans are settled for long periods depending on the nature of the