A Summary of the Milken Institute report of January 2003 on the globalization of world economy: "potential benefits and costs "
- Key Data Market
- Degree of market concentration
- Technological developments
- Changes in consumer behavior
The Milken Institute is an independent U.S. institution, an instrument of economic research. It publishes reports, articles and lectures. The January 2003 report focuses on the globalization of the world economy. This report is written by Michael D. Intriligator, one of Chiefs of Milken Institute, who is also a professor of economics and political science at the University of Los Angeles. His study is based on a rich bibliography that includes economists such as Krugman or Stiglitz or reports of global institutions such as the UN or the World Bank.
Globalization has become an essential part in the world today and represents one of the major forces that will determine the future of the planet. It has many dimensions: it concerns the economy, politics, security, environment, health, culture, etc. But here the emphasis will be on globalization applied with respect to the global economy. The term globalization was coined in the 1980's but the concept is old and it is interpreted differently.
Partly because of these interpretations, reactions to globalization are diverse - some politicians, scholars, activists, see globalization as a force that is advancing the global economy, while others, in the same category as before; believe it represents a significant threat to the global economic system.
This report has three main objectives: first, to clarify the concept of the economic globalization, and secondly, to assess both the benefits and potential costs of globalization, and third, to see how the costs and dangers of globalization can be contained through international cooperation and development of new institutions in the world.
The thesis of the report is that globalization has both positive and negative aspects, some of its positive aspects from the competition it causes, and some of its negative aspects -which could potentially lead to conflict - can be contained by international cooperation through agreements on policy or the development of new international institutions.
Globalization is defined as the major increase in the international trade and exchange in an economy that is increasingly open, integrated, where borders are erased. There has been remarkable growth both in trade and exchange of goods and services and also in terms of capital flows, technology transfer, migration of people, and at the flow of ideas and information.
We can distinguish different sources of globalization for many decades:
The first source is the technological advances that have dramatically lowered the costs of sorting information and data extractions. This is essentially the computer revolution, the manifestations of which are now e-mail and Internet.
Tags: Globalization, capital flows, technology transfer, migration, technological advances, economic system, politics, security, environment, health, culture