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Lead Papers
CASSIMON explained that globalization of the world economic system is proceeding at a very rapid pace, and is generally promoted as being welfare-improving. This phenomenon is also present in the arena of international finance. In this area, however, the presumed virtues of globalisation are far from being materialised. Until now, no orderly or stable financial system has been implemented, as recent currency crises, such as the Mexican peso crisis in 1994-95, and, more recently, the currency crises in a number of South-east Asian countries, Brazil and Russia, painfully demonstrate. Furthermore, the current financial system does not succeed in channelling sufficient funds to finance crucial world problems such as adequate social development in poor countries. Dr. Tee L. Guidotti discussed sustainable development as a widely-discussed alternative to currently unsustainable economic development patterns. It is all the more attractive because it may be cast in terms compatible with the market economy. However, there must be a social dimension to the concept, a vision, for it to become a viable alternative to unrestrained economic growth. The Earth is no longer a self-regulating planetary system. Its future will depend on human action and the continuation of natural ecosystems will be achieved because people want them to be preserved. Acceptance of sustainable development by society may depend on cultural values and even spiritual notions about the relationship of humankind to the Earth. This is why the otherwise quasi-religious concepts often expressed in the environmental movement, such as the Gaia hypothesis, have value as metaphor even if they do not necessarily express literal fact. Sustainable development is often described in terms that suggest a static, less technology-dependent, and culturally more homogeous regionalized society. However, sustainable development cannot be stagnation. People will not accept a view of sustainable development that recreates a technologically more advanced version of a basic peasant society, especially if they have only recently developed economically. For societies to accept sustainable development and to continue to grow within, the new way of living must accept cultural diversity, encourage individual expression, allow social change, offer opportunity, and examine values. There must be ways to permit opportunity and growth without ecological compromise. Achieving sustainable development may therefore be linked with policies emphasizing community, the value of information, originality in ideas, and the arts.
This group provided a clear analysis of trends in the global economy
with specific references to developing countries and the challenges they
are facing to achieve a stable economic growth by a faster growth(Dufour). The
global economy is unstable. Serious biases against the underprivileged
exist. It was found that in the world's poorest countries the interactions
between trading and financial systems have had significant negative impacts
on their growth. Global capital movements have kept poverty and unemployment
on the rise in developing countries. The gap between the rich and
the poor is widening. This shows a failure of The Global Community
in building an equitable system of global economic governance. The effects
of globalization have left behind most developing countries. Most developing
countries show a trend of widening trade deficits and falling or stagnant
growth rates. Their efforts to close the payments gap through increased
exports to developed countries have failed. An increase in exports required
growth in world demand but world growth has been low. Export earnings were
not sufficient in financing the debt. China and Chili are the only exception
to this trend. They were able to succeed in managing a faster growth by
increasing trade performance.
A new approach to development issues was suggested: business leaders
are to conduct their affairs with responsibility, cooperation and compassion.
A larger flow of private foreign investment would accelerate further growth
and bring stability. Progress on access to markets in industrialized countries
is the key to overcoming the payments facing developing countries. The
international trading system needs to be fair to all global economies.
Their are aspects leading to unfair competition. Protectionism is at its
highest in developed countries. For example, the heavy subsidization
of agricultural output in the industrial countries cuts out imports from
developing countries. Protectionism was also observed for industrial products
such as clothing and textiles, low-tech and high-tech products. The industrialized
countries were found to make use of antidumping procedures and health and
safety standards against successful exporters in the developing countries.
An indicator measures the GDP per capita, and it is the
net value of all goods and services produced in a region divided by the region's
population. This measurement permits an accurate comparison of the economic
strength of a region relative to the economic strength of other jurisdictions.
An indicator measures the GDP per capita for natural resource
depletion and depreciation; it is adjusted for changes in the quantity and
quality of natural resource stocks divided by the region's population. It is
important to take into account the depletion and degradation of natural
resources when calculating GDP as a way of incorporating physical inventories
and flows of natural resources into the calculation of economic
production.
An indicator measures the per cent of GDP from secondary
production such as manufacturing, and business services. This indicator
shows the extent to which we add value to our resources before we sell them;
this process creates higher paying jobs and generates wealth, and an increase in
the contribution from business services also results in wealth generation and
good employment opportunities.
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