New World economic system.
New World economic system: The modern economic revolution has brought many world societies into a single speedily evolving economic and political system since the end of the nineteenth century. Regions and people from different parts of the world are linked by this system either economically, culturally and politically.
The previous economic system had resulted to some regions and countries accumulating immense wealth and power while other nations and regions fell into declining economy and political stability (Coffman, Leonard & Neal 39).
This debate has drawn the attention of many economists in the past few decades who are interested in establishing the role of institutions in enhancing economic growth. Development economists have questioned the level of credible commitments by political institutions to limit liberal state actions and
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The political environment that was established in many parts of the world in the twentieth gave rise to industrial revolution which was only evident in Europe. Economic advancement had ensured that the industrialized Europe had gained power to control other nations but rising political awareness from the European colonies led to defense against the European influence. After the Cold War many nations shifted to industrialization giving rise to global competition and increasing global trade.
Though globalization has been of help to the global economy. The current global economy has suffered from economic recession as a result of increasing trade; this has lead to instability to the global economy even though the recession has been moderated.
Allen Larry. The Global Economic System Since 1945. New York: Princeton University Press, 2005.
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