Global Integration to Global Meltdown : A Paradigm Shift

This paper is an attempt to provide an ideological postulation of Adam Smith and Karl Marx on globalization. This paper gives a fair picture of the different dominant nations over a period of time from sixteen century till 2010. The industrialzation in Europe and later on in North America changed the pattern of demand in the world market. The two World wars and Great Depression had shifted the economic power center from Europe to USA. The major political division of the world after Second World War was an essentially that between the west (led by the United States) and the east (led by the soviet-dominated nations). The collapse of U.S.S.R. and the institutionalisation of WTO and TRIPS had led to the increased values of western powers and protection of their interest. In 2008 Lehman Brothers has had to be liquidated and the bursting of the housing bubble led to a surge in defaults and foreclosures. USA became the epicenter of sub-prime market crises. The largest financial crisis after Great Depression has started from USA and spread to Europe through private MNC to sovereign default by Greece in Europe. The nations of Europe and Japan are in deep crises. The concept of world government has shattered with European Union struggling for its survival. Although now after the crises United States retained its leadership, but its dominance is much reduced. The BRIC economies and G-20 have emerged in the new power equation. One may find in future instead of a unipolar world, there is going to be a shift towards multi polar world