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Take home exam - Essay Example

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The rules of the present international economic order have been primarily designed and enforced by the developed nations to serve their own selfish interest for this reason undermining the ability of these concepts of business to in spur development, as they so desire. In as long as the developed nations interfere and manipulate the international trade rules to safeguard their wealth, resources as well as other self-interests and gains, the other countries of the world will remain to languish in abject poverty regardless of the economic globalization. This in turn has led to the increased incidence of inequality among and within states involved.
According to Stiglitz, developed countries continue to manipulate the international trade rules with the knowledge of the third-world countries that remain to be the greatest causalities of these amendments (63-64). The countries aim at protecting their factories and farmers from the more proficient producers in the developing countries. The international financial system that is led by the I.M.F has been known to reward the extravagant leaders and penalize the wretched debtors. Such moves are aimed to cover up for the many malicious practices on the international platform that leaves the rich states richer while the poor states more impoverished.
As globalization continues to take center stage and implementation of free trade unions, the disparities and economic inequality continues to proceed further unchecked evoking the concept of negative externalities as construed by market analysts and researchers. Interest groups among the developed nations benefit from favorable treatment by their government but these favors do not apply for people from developing countries as they are victimized for becoming a ‘threat’. The same applies on the aspect of free trade that over time undermine ...Show more
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Summary

Stiglitz, it is evident that trade and economic globalization has greatly undermined development and increased poverty index in the general public domain (61). Stiglitz (2006) elucidates that over the past 20 years, the number of individuals living…
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