Evanescent World Development

Abstract

With some minor differences, there are two main paradigmatic economic strategies compatiblewith the globalization trust that in are use in the world. One, is based upon theexpansion of credit, of financialization, to displace the role of investment and employmentin armonizing aggregate supply and demand within each country. Any resulting gap betweenboth variables is filled with imports, creating cripping disequilibria in foreign internationaltrade and financing. The second one is designed to cover deficiencies in domesticdemand by exporting, i. e., by using the purchasing power of other countries. Nowadays,both strategies are becoming obsolete due to changed world circumstances and due toglobal imbalances created by its application. There are huge inequalities in the distributionof benefits from world trade, as well as between capital and labour. Those imbalancescreate different political and economic problems among countries and regions that makeit hard to find common and prompt answers both to the global crisis and to the neededreconstruction of the international economic order.