ABSTRACT
While the chronological evolution of globalization has been illustrated in the previous chapter, this chapter covers the ideological development and theoretical genesis of globalization. The evolution of globalization as the new philosophy of economic development in the emerging market economies, matching the sourcing and supporting the growth in the mature developed economies, would be better understood by a review of the experience of development over the decades until the end of the 1970s. Economic theories and policies always emerge and get shaped in response to the needs of the contemporary economic environment. A changing milieu evolves new relationships between the economic parameters unexplainable by the traditional theories and new problems remain intractable by conventional wisdom.20 While the previous chapter covered the philosophy of globalization in the context of evolution of the international monetary system and the motivation from the developed world, the 3W Model also had an important underpinning from the needs and aspirations of the emerging market economies. This chapter looks at the experience of the earlier development models that were tried for the Third World countries. The phase of globalization can then be viewed in historical order and with a better perspective.
