Our economical challenges: from global to local

By Javiera Vallejos – 29th May, 2018

Introduction

Globalization is a multidimensional phenomenon we started to experience since America was

discovered and which was reinforced and get its whole magnitude with industrialization. One of

these dimensions is the economical one which, been strongly related to social, cultural and

political processes, emerged as a controversial issue of extreme importance in our contemporary

society.

But how the economical expression of Globalization, it means the capitalist Global Economy

through free trade, does impact in world welfare (1) and local communities (2)? What kind of

economy does society need to achieve sustainable development? (3)

Body

(1)

Global economy -as we know and experience it - has enable capital accumulation and progress at

unimaginable levels for our predecessors (Keynes). We have seen increase national incomes and

access to goods and services, but in the other hand global economy has stimulated over-

consumption of resources by the developed countries, enforced global inequalities and it is driving

to climate change, and food and potable water scarcity (Singer).

(Provide empirical evidence for each aspect mentioned and go deep)

(2)
Under global capitalism, production is lead by global enterprises seeking maximize profits the

most of the times as expenses of labor force, communities and environment. These large scale

organizations are possible because free trade. They can operate without concerns about the

ecosystem because there are few or none regulations on these matters, they can outsource

production and they can sell everywhere at low prices which local industry is unable to get.

(Provide empirical evidence for each aspect mentioned and go deep)

(3)

To address the challenges of our contemporary society, we should move from standardized

policies and institutions to adapt them and reconsider creatively the cultural differences among

regions, countries and communities. We should focus in alternative economical systems based on

local capacities to reach development.

Micro, Small and Medium enterprises are the most important contributors to overall employment.

In addition to micro and SME, there are organizations from social economy as cooperatives and

associations of producers, all of them are local embedded. Finally, short food chains, transition

cities, circular economy are civil initiative sometimes governmental promoted leading an

alternative economical system which deal with social and environmental sustainability at short

and long term.

(Provide empirical evidence for each aspect mentioned and go deep)

Conclusion

To sum up, the essence of globalization is standardizing policies and institutions politically, and

economically speaking it is capital accumulation through free trade conditions. As consequences

our society has experienced incredible material progress, but inequality and environmental
hazards. To reach a socially and environmentally sustainable economical development, we should

move forward standardization and promotion of global enterprises as motor of progress, and we

should go from a global to a local paradigm. Local economic development is focused on welfare of

a specific community which is impacting on its own lifestyle and future, it is concern about

ecosystem equilibrium in a short and long term and it is not just about profits and capital

accumulation but employment and life standards. There are several initiatives, most of them

arising from civil communities organized, which should spread wider and deeper to create more

innovative and appropriate answers to the challenges of our contemporary society.

References