POLITICS OF GLOBAL FINANCIAL RELATIONS

The global financial relations reflect the changes on discourse about political and economical development in underdeveloped countries. The imperialism and its development, the globalization and African development, the industrialization in the third world countries, trade and development are the important areas of the global financial relations.

The debates on the relationship between globalization and development have been put forth implicitly. The failure of Washington has crashed the development packages which made Europe and the United States of America to instigate the thought about the neo-liberal globalization and development. The supporters and the opponents of the globalization have focused on the Washington failure. Another question which adds oil to the fire is about the state of Latin American and Africa. The implementation of market reform in Africa and Latin America has not yielded a good return since they haven’t faced a rapid growth whereas China which has forbidden all these has now become an example for the world.

On the other hand the neo-liberal globalization is still a question to be answered. The investments that are offered for the development of countries under the neo-liberal regulations are questioned. Could the industrialization in the developing countries help them really? After a lot of opinions everyone wholeheartedly agreed that agriculture and trade are the foundation for the development. It is a good thought but what has happened to the rules of neo-liberal globalization which monitored the agricultural trade.

The Politics of global financial relations is being focused under the perspectives of neo-liberal globalization. These notions were derived from Wright Qwency. Free trade is being practiced under neo-liberal globalization. The economies of the third world countries were managed by big international institutions like World Trade Organizations. The third world countries face a different reality when they trade with the developed countries. The exports of agricultural and processed products from the developing countries are very much affected by the protection and other discriminatory policies of the industrialized countries. The World Trade organization is said to have lethargic effect on the interest of the developing countries. Another important problem faced here is that the political and the administrative institutions of governance suppressed the people of the Third World countries instead of uprising them in trade. All these have made the global administration to lose grip which had ended it into a crisis. Many countries have taken protectionism in their hands to protect after the hit of the financial crisis in the global village which is entirely opposite to the rules of WTO.

Among the issues dealt in the Politics of Global relations the rules, agreements and policies of multilateral trade regime and development theory holds importance.

Questions

• What are the difficulties faced by the developing countries in global relations?
• Is neo-liberal globalization a failure or success? Justify your answer.