Global Economy Comes Back To Haunt Developed Nations

[OhioChick]

Published: Monday, 20 Jun 2011 | 10:00 AM ET

A funny thing happened on the road to globalization. It became a two-way street, not a one-way trade superhighway for the developed economies.

The change in traffic — which loosely corresponds with China's entry into the World Trade Organization in November 2001 — has been gradual and subtle during good economic times, but has become stunningly obvious since the arrival of the financial crisis in 2008.

"What we have to to realize is that the dynamic of the whole global economy has changed very dramatically," says Jorge Heine, a Chilean politician, diplomat, policy expert and co-author of the book "The Dark Side of Globalization". "Growth and dynamism is now from the emerging economies. They are the new players."

Forget about BRIC. Try BRIC-A-BRAC. Brazil, Russia, India, China, then fill in the names of any number of countries in the Latin America and Asia-Pacific regions whose initials fit the bill.

More: http://www.cnbc.com/id/43394460

[Demeter]

1. You said it, in spades

We live in interesting times--old Chinese curse version.

[locahungaria]

2. K & R n/t

[xchrom]

3. Recommend

[bulloney]

4. In some ways, economics works like physics.

Take two chambers. One has high pressure, the other has low pressure. Remove the barrier separating the chambers and what do you expect? The pressure goes from high to low until there's an equilibrium. The high pressure chamber is now lower.

I don't know how anyone with a straight face can sell these so-called free trade agreements by saying they will bring up everyone. But that's how the BS went with NAFTA, WTO and the other agreements that put U.S. standards against those of Third World nations in the agreement.

All these so-called free trade agreements have been are conduits that enable trans-national corporations to pit nation against nation in their wage scale, enforcement of regulations, currency values and other factors. Capital and technology can be transported around the world more easily than ever.