The Failure of the Global South in Achieving Economic Growth

The world economy can not achieve economic growth "Only the strongest law is the only law" [1] This is one of the many factors emphasized by fair trade agencies. The Fair Trade Organization is one of the elements that helps to explain the economic gap between the north and the south. Elements of corporate social responsibility, globalization or Americanization and other capitalism also help to evaluate to what extent the West participates in the global economic division between North and South.

This paper considers the relationship between globalization of the economy from 1980 to 2008 and growth of specific OIC countries. Furthermore, I will explore whether the growth effect of economic globalization depends on a series of complementary policies and income levels in OIC countries. The structure of this paper is as follows. In the next section we will review relevant research on the impact of globalization on growth. Then describe the model specification. Next, we show the methodology of this research and the data set used for estimating the model and empirical strategy. Next I will report on and discuss the econometric results. In the last section, I summarized the paper on important issues related to policy influences.

Recently researchers have argued that the growth effect of globalization depends on the economic structure of each country in the process of globalization. The impact of globalization on national economic growth can also be changed by a series of complementary policies such as improvement of human capital and financial system. In fact, globalization itself does not increase or decrease economic growth. The effect of complementary policy is very important as it helps countries to succeed in the process of globalization.

In a small country that is located in the south of the world and is not industrialized, you will find it difficult to achieve sustainable development. This is the result of unfortunate globalization of over capitalism, which makes economic growth equal to consumption growth. Since we do not have infinite resources, we can not assume that consumption can not grow indefinitely. After all, the system reached the limit that can not be overcome and it collapsed. Depending on limited fossil fuel resources, the system will fail within the next 50 years. The road to sustainable development is difficult, but it is ultimately a more stable system than most countries in the world.