The Impact of Globalization: Opportunities and Challenges for Glocal Development in Europe, Latin America and The Caribbean

1. Trends in globalization 1 2. The emergence of glocalism within the framework of globalization 5 3. The glocal approach as a fundamental response to the problems of globalization 9 4. Comparison between European and Latin American experiences with globalization: opportunities and challenges 13 5. Possible strategies and policies from a glocal perspective. What can be done? Who should be involved? How can it be extended? 27 Bibliography 31 1 1. TRENDS IN GLOBALIZATION After a decade of exuberant globalization during the 1990s, fueled by linear and optimistic expectations, large sectors of the world's society and economy now face much more complex situations than originally anticipated up until the beginning of 2000. In an increasing number of cases, the results of globalization have been disappointing. According to many analyses, growth rates in the so-called "Triad" (United States, Europe, Japan) will be moderate, or even negative, though actual figures will differ widely. Due to the strategic importance of US, European and Japanese markets, this situation will also have a depressive effect on many emerging and developing markets. Deflation is one very significant signal of these disappointments, and currently affects some of the world's most important countries such as the United States and Germany. Some economists are calling it "New Deflation, " as compared to the 1930s phenomenon. Its effects have been evident for many years in countries such as Japan, where its impact is felt in numerous sectors of the economy, and particularly on the price of manufactured goods. However, according to other experts, 2003 will be a better year than 2002, and will be driven by an upturn in investments and consumption. The improvement in the real economy will also enable chief financial markets to overcome a crisis comparable to the 1970s, leaving today's model of neo-liberalist development substantially unchanged or even strengthened. Factors stimula ting the economic revival will include the strength of some of Eastern Asia's chief economies, and to some extent also India and Russia. China, in particular, will act as an engine of globalization. Domestic deflation in that country, considered to be "good deflation," is a consequence of opening to the world economy, and gives Chinese firms a strong competitive advantage in international markets. In this picture of the world economy, Latin America is also affected by widely conflicting trends and prospects. These range from very negative to promising, and reflect each country's particular situation and …