Globalization and free market are expected as the global effort to improve efficiency. Global trade to help many countries to develop more quickly. Globalization is also considered to make the developing countries gain access to knowledge that can not be obtained previously. Globalization is as if the progress that must be accepted developing countries, if they want to grow and fight poverty effectively. But for most people in developing countries, globalization does not bring the promised economic benefits (Stiglitz, 2002:6).
Globalization in practice, developing countries must pay for the welfare of the efficiency of the world’s developed countries. South efficiency of the global fund for the benefit and progress of the North. Market failures or failure, market failure occurs everywhere, not only because of the conditional demands for the realization of the market that can be self-regulating is not met (because of the assumption realization of the competition-free for the formation of a pure free market is not proven empirical-realistic), but also because of the economic interests and nonekonomi that must be maintained and through efforts to distort the market significantly (Swasono, 2003:83).
Joseph E. Stiglitz
The increasingly wide gap between the rich and the poor has raised a lot more people in the Third World to become increasingly poor. In 1990, 2,718 billion population live with less money than $ 2 per day, whereas in 1998 the number of poor people who live with the money less than $ 2 per day is estimated to be 2,801 billion. This happened with the increase in total revenue in the current world average of 2.5% every year (World Bank, 2000:29).
World Bank Office in Washington
Globalization has not succeeded in reducing poverty and ensuring stability has not been successful. The crisis in Asia and Latin America has been the economy and threaten the stability of developing countries, even the 1997 crisis and 1998 is a threat to the entire world economy.
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