ABSTRACT
The global market economy has grown every year since the end of the Second World War, increasing economic production and affluence. The growth imbalances between various regions occur often. The aim in this chapter is to contrast a region of economic decline with its opposite, a region of rapid economic development. In theories of social economics, the process of modernization used to figure prominently, modeled as grand social change from the first sector to the second sector. China's economic modernization would not have been possible without the country entering the process of globalization as a full member of the World Trade Organisation (WTO). Austerity policies may change the balance between the private and public parts of the mixed economy. This is a cause of great concern as every advanced country needs a well-developed public sector. Governments must conduct policies that prevent their countries from falling into the debt trap.
