Essay Title: 

The Governance of Globalisation:Is it time for an alternative approach?

March 24, 2016 | Author: | Posted in economics, mathematics and economics

THE GOVERNANCE OF GLOBALISATION

2006

INTRODUCTION

The process of globalisation started with advances in transportation technology in the second half of the nineteenth century which resulted in the colonization of countries outside Europe and America . This was the first wave of globalisation which can be said to have ended with the First World War and the Great Depression . The Second World War and the convening of the Bretton Woods Conference in 1944 brought nations together from the ashes of the war to try and build up an international . The capitalist [banner_entry_middle]

world under the leadership of the United States of America moved for trade liberalisation and this agenda was accelerated by developments in information technology and communications . The dominant system for world governance in the first wave of globalisation was the colonial domination of the world by European powers (Von Braunmohel , 2005 , Chapters 1 – 2 (Strange , 2003 (Kimon , 2000 (Institute for International Economics , 2005 ) and (Siamwalla , 2004 , Pp 2 – 23

In the second wave of globalisation , various international agencies were established to loosely oversee the liberalised world economic . The important international agencies which were established to oversee the global system were the International Monetary Fund or the IMF and the General Agreement on Tariffs and Trade or GATT . The GATT was later transformed into the World Trade Organisation or the WTO , which is made up of 28 intergovernmental agreements by which member states agree to limit their sovereign right to intervene in international trade . It was hoped that with such agencies , it will be possible to facilitate international trade and manage the international economic system (Von Braunmohel , 2005 , Chapters 1 – 2 (Strange , 2003 (Kimon , 2000 (Institute for International Economics , 2005 ) and (Siamwalla , 2004 , pp 2 – 23

The WTO today has 144 member states and an additional 30 which are awaiting accession . The benefits that have been provided by the WTO agreements include the liberalisation of international trade , the rule of law , a procedure for the settlement of disputes , cutting of tariffs by the industrialised world and the elimination of the most favoured nation status amongst others . These measures have considerably enhanced the volume of international trade with nearly 25 of the global output being traded . Despite the criticism levied against it , the WTO has been successful in the past 50 years to provide a mechanism to avoid protectionism and trade retaliation , with its Council having authorised retaliation through tariff increases in very few cases . Government trade policies are more stable and predictable and the international trade which is vital for global stability keeps flowing (Von Braunmohel , 2005 Chapters 1 – 2 (Strange , 2003 (Kimon , 2000 (Institute for International Economics , 2005 ) and (Siamwalla , 2004 , Pp . 2 – 23

The WTO , however , also has its critics and there are demands that the functioning of this organisation be made better . It has been said that there are deficiencies in the legal-institutional framework that govern the relationship between the global regional trade agreements such as the North American Free Trade Agreement or NAFTA , the European… [banner_entry_footer]

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