Since 1980, the third technological revolution has been booming; a revolution based mainly on new information technologies and brand firmly established as a "new economy". With the help of these technologies, particularly the Internet, the information economy itself is now seen in the global space. However, like previous industrial revolutions, this one seems to be limited to a handful of countries which dominate world trade both in goods and services, and financial and monetary policy.
In 1960, as at the beginning of the century, three quarters of world's manufacturing output was concentrated in the currently developed countries. The phenomenon continues today, as the majority of multinationals are based in Western Europe, North America and Japan, more commonly called the Triangle Triad. Outside this cluster, other countries are emerging gradually, and trying to catch up on older industrialized countries.
These emerging countries are primarily the NPIA (newly industrialized countries of Asia) followed by a second wave of industrialization involving other countries in Asia, Eastern Europe and Latin America. Rapidly expanding, they are at the heart of trade.
How have they been able to win a place in the global economy? What are their ties with the Triad? What impetus could it give them? What has dominated the new global economy over the past two decades? To what extent can one speak of the Triad and the emerging countries in the new global economy?
The Triad and the emerging countries occupy a prominent but different place in the new economy, especially because these two poles have not had the same past. Also, the explosive growth of emerging countries tends to scare older industrialized countries. However, the new global economy has not really changed all that, firstly, because emerging markets seem addicted to the Triad, and secondly, because it traditionally dominates world trade.
The involvement of countries in North America, Western Europe (15 EU) and Japan in international trade is an old tradition. Since these countries have achieved their industrial revolutions from the eighteenth and first half of the twentieth century, they are key players in trade in goods and capital around the world. By the late nineteenth century, they had already evoked a global economy.
For two decades, this trend has only increased in these countries holding an edge over the rest of the world in technology and scientific research. This is related to a higher level of education, social progress faster an economy enriched by the glorious years of post-war, but especially the policies of industrialized countries.
Indeed, as wii be seen later, the democratic regime and the choice of a market economy by the governments seem to be a necessary condition for growth and development of a country. The nations of the Triad are mostly old democracies that have long been rife capitalist values. In addition, the regionalization process, such as the European Union, also promote the growth of international trade by lower barriers to free trade (deregulation, currency ).
The Triad, can also be defined as a structure accompanying the growing importance of transnational corporations, which play a leading role in world trade as they strive to reach all markets and implement the process of division in international labour.
Tags: The Triad; global economy; emerging countries in new global economy; new industiralized countries from Asia
[...] In addition, some states, such as China, have set up free trade zones to attract foreign firms and hence, capital needed for development. It takes a real collective political will to achieve development. Also, even though China is still under a communist regime, the government pursues a socialist market economy. It is imperative that the activity of multinational firms is enough for it to be framed for development in the long term. In most African and Latin American countries, there is no strong political power and ethnic clashes are often obstacles to development. [...]
[...] While the FDI from the Triad helped emerging countries to hatch. However, they have made these countries dependent on international capital flows and the South who managed to attract some of the world's savings have also had to import instability that accompanies it. It is this strong external constraint that led Argentina to the crisis at the beginning of the twenty-first century. When multinational firms decide to repatriate to their country of origin the profits made, capital outflows are very important and therefore dangerous to the economic stability of the host country. [...]
[...] The commercial services international trading segment is further consolidated with four largest nations (United States, Germany, United Kingdom, China and Japan) constituting 33% of total marketspace (WTO, 2011). Europe as a whole (triad) is the largest commercial services trading zone; constituting 45% of total segmental mix. The international trade has been traditionally focused towards “intra” trading blocs i.e. majority of exports from EU are distributed and consumed across the triad block only of total). This also holds true with the secondary markets such as Africa with 12% of its export consumed and distributed across triad markets i.e. intra African continent. [...]
[...] The international trade and manufacturing market is slightly shifting towards Tier II secondary markets (Example GE mentioned that manufacturing prices in secondary markets is normally 30% lower than BRIC countries). Source: http://www.globalintelligence.com/ By the relocation of their factories or establishing subsidiaries, transnational directly involved in the development of emerging countries. In fact, they create jobs, thereby forming the local workforce, and provide technical and capital. The commercial development of emerging countries is partly due to the international division of labour. [...]
[...] These emerging countries are firstly the NPIA (newly industrialized Asian countries) followed by a second wave of industrialization involving other countries in Asia, Eastern Europe and Latin America Source: http://www.wto.org/english/res_e/statis_e/its2011_e/its2011_e.pdf From the above initial discussion, it could be seen that emerging economies such as Asia are witnessing strong double digit growth of 22% annually across the international trade segment. Triad and emerging countries occupy in the new economy, a prominent place, but different, mainly because these two poles have not had the same past. Also, the rapid growth of emerging countries tends to scare the old industrialized countries. However, the new global economy has not really changed all that, firstly, because the emerging countries seem dependent on the Triad, secondly, because it traditionally dominates world trade. [...]
Online readingwith our online reader
Content validatedby our reading committee