Bruno Sergi: Global Trends of The World Economy

Posted: 2017-10-19
Written by: EU Network
Category: WFYS2017
Tagged: sustainable development global trends economy


Want to know more about world economy? Then it's almost great idea to visit lecture by Bruno Sergi, professor from Switzerland at Ural Federal University. It was quite interesting experience for me to visit the lecture, but still I would personally rebuttle some of professor's arguments. Let's see what's this story about!

First of all we should look at the history of globalization. The historical origins of globalization are the subject of debate. Though several scholars situate the origins of globalization in the modern era, others regard it as a phenomenon with a long history. Even as early as the Prehistoric period, the roots of modern globalization could be found. Territorial expansion by our ancestors to all five continents was a critical component in establishing globalization.
What we see is that processes change and sometime globalization comes slower, sometimes faster. Now we're on the another one verge of chage. How did it come? How I world has changed during the last 20 years? Actually one of the professor's arguments was about technological change. "Technological change rises income inequality between people", claims professor. But why so, why is it true if technological progress makes the world more civilized and less violent thus allowing more just resource allocation?

Trade openness

The ratio of trade to GDP - an indicator of trade 'openness' - has increased for most  trading nations, and is a result of globalisation, and trade liberalisation. Trade openness  is good advantage for moving forward towards more equal and just system. There is increasing competition in the world economy.More people influences global economic system much more than we think, while we move towards the 7 billiard of people on Earth. What we have: flow of money increases, more demand for food&services, constantly increases consumation of strategic important resources. Actually the trick is with increasing population increases income inequality between rich and poor. In modern economy income distribution really matters for economical growth.
One of the most crucial points Mr Speaker noted is profit inequality between people in different regions of the world.  
"We need huge investment on global ifrastructure, but to grow faster we need to invest into education.", believes Mr. Sergi, "FOOD SECURITY is cruicially important: We Must increase food production by 60% to deal with food consumption increase."
Well, there's contradiction in the argument: just growing and producing more food will not solve the problem of profit inequality, those who have more income still will buy more, and poor people will be on the verge of povetry. What we need - decrease food waste and develop new scientific method to lower food demand in the world. 
Aleksey Vesyoliy for


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