5. WORLD ECONOMY
It generally refers to the
economy, which is based on
economies of all of the
world's countries' national
economies.
6. HISTORY OF WORLD ECONOMY
Stone era
It is the most preliminary era in which
the trade between the people started.
Classical era
Followings were the important steps
forwards
• Expedition and long distance commerce
• External trade with the Roman Empire
• The introduction of coinage
• Developments in economic awareness
and thought
7. History of world economy
Middle ages
•Agricultural era
•Industrial Revolution
Concept of Global Economy
The concept of world economy
was given by Adam smith in
1776
Modern period (period
of technology)
This is the period of modern technology in
which robotic machines are there in each
department of life. From manufacturing to
entertainment
9. Economies of the World in
different periods
• In
the
based
agriculture
economies
the
times
of
eastern countries of the world was
dominant and Sub-Continent was
known as Golden Sparrow
• While
after
the
industrial
revolution the western economies
got strength and with the revolution
is the field of IT, most of the countries
were standing no where in the
economic run between the countries
10. An other Historic Fact
In period of World War I & II. Though the
resources of the world wasted a lot . But at the
same time production got highest point as well.
Big developments in the industrial sector came
in the same period.
While at the same time most of the
eastern countries were fighting with evils
of colonial system deeply rooted in their
area…. And yet doing the same.
So the tilt of whole
economic growth
was towards west
11. World Economic Order
after WW II
WEO explains the distribution of wealth among
the different regions of the world.
Polanyi had predicted in 1944, that
• The post war, world market system would no
longer be self-regulating.
• Not a new Gold Standard but adjustable &
pegged will be required
• A ‘more
conscious
effort
in
international
management’ of the world economy will be
necessary
12. Reasons of
Economic Disorder
The tilt of wealth is towards the countries
who have better technology to utilize the
resources in optimal way.
The developed countries get the resources
from the under developed countries in raw
form. And in most of the cases they sell the
same material to the under-developed
countries after furnishing and charge high cost.
13. Motto
"The economic
health of every
country is a
proper matter of
concern to all its
neighbors, near
and far."
Bretton Woods Conference
Purpose
Conference was held on 8th july
1944 which was attended by 730
delegates from 44 Allied nations
at the Mount Washington Hotel
in Bretton Woods, N.H.
The
purpose
was to create a
system
which
avoided
•World war III
•Great
Depression II
15. International Monitory Fund ( IMF)
works to foster global growth and
economic stability.
provides policy advice and financing
to members in economic difficulties
works with developing nations to help
them achieve macroeconomic
stability and reduce poverty.
16. July 1944
World Bank is an International Financial
Institution that provide loans to developing
countries for capital programs
The World Bank’s official goal is the
reduction of poverty
17. The International Organization that
Governs the rule of Trade between
Nations
Administer WTO trade agreements
Forum for trade negotiations
Handle trade disputes
Monitor national trade policies
Technical assistance and training
Cooperate with international organizations
19. Criticism on these international
organization
• Tough conditions for developing countries
• are fundamentally undemocratic
• Dominated by industrialized countries
• trample labor and human rights
• are increasing inequality
• hurt poor countries in favor of rich nations
21. New World Economic Order
The New International Economic Order (NIEO)
was a set of proposals put forward during the
1970s by some developing countries through
the United Nations Conference on Trade and
Development to:
promote their interests by improving their terms
of trade
Increase development assistance
Tariff reductions for developing countries
22. Tenets of New World Economic Order
Active assistance to developing countries
by the whole international community, free
of any political or military conditions
The need for all States to put an end to
the waste of natural resources, including
food products
Giving the developing countries access to
the achievement of modern science and
technology
23. Cont…
The right of every country to adopt the economic
and social system that it supposes the most
appropriate for its own development
Secure favorable conditions for the transfer of
financial resources to developing countries
Developing countries should be freed to nationalize
or expropriate foreign property on conditions
favorable to them
24. Role of Big Economies
At the forum of general assembly of
UNO all the countries along with
big Dolphins show a great intent to
bring all the regions of world on the
same economic position
BUT
All the big economies of the
world like America and the
great Britten have the Sole
thought not to let the Eastern
Countries to glow and to have
the complete charge of Worlds
economy.
Greed has no limit
Even these Economies want to grab the
resources of the other under developed
economies
25. Examples of brutality of big
Dolphins
European Economic Community (1957)
Its aim was to bring about economic integration
among its six
members (Belgium, France, Italy, Luxembourg, the Net
herlands and West Germany. Renamed as European
Community)
EMS-(1979-1993)
Actually it was an attempt to prevent the fluctuations of
exchange rates among European countries to
minimize the risk of loss
26. Example of brutality of Big
Crocodiles
Formation of WTO(1995)
Different strategies for developing and developed countries
Intrigue in other countries
American intervention in other countries
Other between the line understandings
Developed countries have some contracts behind the scene
to have dominance on the developing countries
30. Distribution of Resources
America
Bases on which countries
•have high technology
are sustaining.?
•Got emulation markets
Europe
• have established foreign markets from the
time of colonialism
•Good technology to utilize the raw material
Middle east
•Have oil resources
China and India
•Have man power
Other countries of world
•Have resources but in raw form
31. Is New World Economic order a
dream come true……??
The core meaning of NWEO is to bring the Less
Developed and Under Developed countries on a
situation where they can remain no more under the
slavery of Developed countries…….. And can utilize
their resources to bring their economy in the run of
developed countries.
Under the present
conditions in looks
impossible
32. Some suggestion to the World
BIG BROTHERS
• by
favoring
true
economic
decolonization, including the right to
diversified,
complete
industrialization, accompanied by effective
transfer of the most advanced Western
technologies
• by compensating the developing nations for
the abusive exploitation of their natural
resources during the colonial era;
• by recognizing their total sovereignty over
these resources;
33. Some suggestion to the World
BIG BROTHERS
• by expanding the participation of
the Third World in the daily
operations of the international
monetary system;
• by encouraging the inevitable rise
in the prices of raw materials);
• by cancelling the standing debt of
the Third World
34. Supposed Structural changes
• Promote planed international
markets:
There should be some authority who is
to regulate the international market
Free market is not a favorable
• Zero sum gamethe Big Brothers should not seek for the benefits in
international trade
In short…
Ri c h s h o u l d
s t o p g e t t i n g
35. Technology transfer
• fulfilling the increasing training needs:;
• research for technology and production systems adapted to
the LDC
• the right of access to subsequent advances in the
technology acquired;
• the development of joint ventures;
• changes in existing regulations (patents and licenses) and
the establishment of an international technology transfer
code
• the creation of an international technology transfer fund;
• stringent regulation of "reverse transfer" (exodus of
intellectuals to industrialized countries).
36. Other Suggestions
• Moderate exchange rate system
• Management of natural resources
• Concept of world Oil Management
Corporation (WOMC).
• Role of UNO
• Presentation of LDCs on the
international platforms
• Pools between LDCs in the
international market
• Role of CHINA
