Over the past two decades, world output has been expanding and many countries are benefiting from increased cross-border trade and investments. Many others suffer becauseeconomic regimes are inefficiently managed, and this weakness reduces their capacity tosuccessfully compete globally (Schneider and Enste, 2002). International mobility of capital,resulting from advances in communications technology and liberalization of financialmarkets has intensified as the world economy witnesses the unleashing of market forces.Deregulation of domestic markets, their opening to competition, privatization and the retreatof the state from economic management are also features of the current global order.However, this same process encourages rising inequality among nations. The liberalization of the world economy, for instance, has proceeded in such a way that the growth prospects of developing countries are being undermined. Thus, while restrictions have been lifted on thefreedom of capital and skilled labour to move to areas of high returns, the restrictions on themobility of unskilled labour remain. Moreover, as developing countries have increased their capacity to produce and export manufactures, the developed countries have become active in promoting tariff peaks and escalations (UNCTAD, 2001a). Such measures can neither solvethe South¶s development problems nor allow for a narrowing of the North± South divide.
CONCEPT OF GLOBALIZATION
The word µglobalization¶ was first employed in 1930, according to the Oxford EnglishDictionary, to denote a holistic view of human experience in education. An early descriptionof globalization was authored by the American entrepreneur-turned-minister Charles TazeRussell who coined the term µcorporate giants¶ in 1897. This term, however, was not widelyused by economists and social scientists until the 1960s. Since its inception, the concept of globalization has inspired numerous competing definitions and interpretations, withantecedent dating back to the great movements of trade and empire across Asia and theIndian Ocean from the 15
century onwards.Globalization (or globalisation), in Wikipedia, describes a process by which regionaleconomies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. The term is sometimes used to refer specifically toeconomic globalization, that is, the integration of national economies into the internationaleconomy through trade, foreign direct investment, capital flows, migration, and the spread of