Trade, Economy, & Related Issues

Author and Page information

Skip this section and go straight to the main content

  • by Anup Shah
  • This Page Last Updated Saturday, July 07, 2007

One cannot separate economics, political science, and history. Politics is the control of the economy. History, when accurately and fully recorded, is that story. In most textbooks and classrooms, not only are these three fields of study separated, but they are further compartmentalized into separate subfields, obscuring the close interconnections between them.

J.W. Smith, The World’s Wasted Wealth 2, (Institute for Economic Democracy, 1994), p. 22.

This section attempts to highlight some of the misconceptions and unfairness in the current model for global trading, economics and the current form of overly corporate-led globalization. It attempts to provide a look at how this all has an impact on people around the world, especially the developing nations.

Causes of Poverty

The IMF imposes its Structural Adjustment Policy on nations who borrow money to ensure debt repayment in such a way that social spending—such as health, education, etc.—must be cut back.

Third World Debt Undermines Development

The causes of debt are a result of mismanaged spending and lending by the West in the 1960s and 70s. As interest rates plummeted, accumulated debt exacerbated. IMF prescribed loans and structural adjustments.

Free Trade & Globalization

The current form of globalization—the ideology of neoliberalism, free trade and open markets—are coming under much criticism. The interests of powerful nations and corporations are shaping the terms of the world trade to the detriment of most people in the world, while increasingly fewer people in proportion prosper.

Corporations

As corporations become larger and multinational, their influence and interests go further accordingly. Being able to influence and own most media companies, it is hard to be able to publicly debate the notions and ideals that corporations pursue. Some choices that corporations take to make profits can affect people all over the world. Sometimes fatally.

Consumption and Consumerism

There are “hidden” costs of convenient items to society, the environment and individuals, as well as the relationship with various sociopolitical and economic effects on those who do consume, and those who are unable to consume as much. Luxuries have been turned into necessities in order to increase profits. There is such enormous waste in the way entire industries are structured, that an incredible amount of resources get wasted as well. Yet most of that waste is structured into the system itself.

Sustainable Development

Sustainable Development is often an over-used word, but goes to the heart of tackling a number of inter-related global issues such as poverty, inequality, hunger and environmental degradation.

Fair Trade

While a lot of overbearing regulations can give too much power to a few, too much deregulation can lead to corporations being able to undermine basic social and human rights. It leads to a lot of unfairness in trade and basic human rights for which the majority of people end up paying the price.

Find this page/site useful?

Other options