The world post World War II is in an economically more advanced state. The inception of the International Monetary Fund and the World Bank in 1945 had been extremely necessary in bringing temporary relief to the world. When the world was tottering at the heels of economic and social disorientation, courtesy closed economies and inward looking policies during the war, the above two institutions vowed to provide funds in the form of loans and aids to developed nations mainly to sustain tentative anomalies in the economy. This was considered to be an unprecedented move towards a long awaited path of economic globalisation which was yet to show its effects.
Skipping to the present scenario, with the advent of the internet, the world has literally settled down at our desktop. Electronic gadgets have enabled us to facilitate easier communication, higher efficiency and greater output. Liberalisation has opened markets and enabled access to resources that were beyond the reach of developing nations a few decades ago. With greater deregulation comes privatisation. For any economy transforming from a nascent industrial sector to a global partner in trade finds itself necessary to have greater flexibility in terms of access to vital resources, credit etc. In other words, liberalisation requires privatisation to play a complementary role. Infact, liberalisation has been playing an impressive part in the globalised world for the past few decades. Now, we not only face closer economic ties between nations but the vast networking systems almost have us believing that the world is similar to a Global Village. But the word to note is ‘almost’.
Despite the seemingly realistic Global Village the rosy scenario mentioned above has hidden thorns. Although the world is economically tied all over, a few loose ends, mainly at the expense of the developing nations, have given rise to the need for political globalisation. It is argued that economic globalisation has preceded political globalisation; resultantly, issues such as international trade, capital mobility across nations have faltered against the undeserved, especially the poorer nations and sometimes even the poor in the rich nations. The world has hurried its way towards exchange, all the while knowing that not every country will have equal understanding of the transactions duly undertaken, therefore failing to thwart the advanced industrial nations from imposing unfair norms over the disadvantaged developing nations. Unfair achievements of globalisation are merely laudable. Therefore the call for a unifying political structure is of utmost import to transform international exchanges into win-win situations. Let us now try to identify the faltering edges along which democratisation of the globe can help in smoothening them.
Trade hasn’t always been the fairest. The General Agreement on Tariffs and Trade (GATT) was created in 1947 to break down barriers to...