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C h a p t e r 1 T h e Ri s e o f G lo b a li z a t io n
transparent and convince their constituents that while globalization does create “winners” and “losers,” appropriate policies will be in place to retrain and uplift the downtrodden. Otherwise, the Bank believes that social unrest will rise, leading to political instability and ineffective and inconsistent economic policies. This, in turn, will wreak havoc on markets and the benefits of globalization will be stalled. Political stability has been greatest among long-standing democracies.
1-3c A daptive Institutions to Strengthen Public Participation Adaptive institutions are government organizations that create strong incentives for private investment and operate under a system of checks and balances that function best in a democratic system of government. Here, accountability and transparency emerge as key factors for institutional reform that promotes political stability, sustainable economic growth, and globalization. The potential for social unrest, such as violent strikes, recedes in these societies because civil liberties, political and human rights, and opportunities for citizens to select and influence a government’s policies exist. Democracies strive to nurture such institutions by instilling transparency with the help of various communication channels. Historically, newspapers or print media have been the dominant route for conveying in-depth investigation, analysis, and thoughts. That was followed by the advent of television, which is the most dominant form of instantaneously conveying current developments and information, today. The Internet, with the help of laptop computers and notebooks, has made visual and readable information even more readily available. The most recent device that enables the greatest ease in portability and accessibility of information are smartphones that use wireless connections and social media that even espouse a strong tradition of individual rights and a free press. Such countries tend to have a vibrant free enterprise system, a competitive market structure, and companies that actively seek to be engaged in globalization.
adaptive institutions
government organizations that create strong incentives for private investment and operate under a system of checks and balances
accountability
Tom Stoddart/Getty Images
a system of responsibility in which an authority, such as the government, is answerable for its actions
transparency
a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism
The collapse of the Berlin Wall was just one political event that helped accelerate globalization.
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