Globalization and economic theory in a transition process: A political-economic aproach
Full time professor
University of Rijeka
Economic Faculty
I.Filipoviæa 4, 51000 Rijeka, Croatia
GLOBALIZATION AND ECONOMIC THEORY in a Transition Process: A POLITE-ECONOMIC APROACH
In this paper we propose a polite-economic approach towards globalization and economic theory. Unlike standard approach to globalization we treat globalization as a transition process from territorial state into global market state. We differentiate between the processes of internationalization of world economy from globalization as a process of transformation of the world economy. We consider that globalization is a process of privatization of the world’s economic resources by large capital-transnational corporations and transnational banks. And if we take privatization as a political process with economic consequences, often accompanied and favored by policies of international financial institutions, we dialectically arrive at the conclusion that globalization is the process of transforming territorial (national) states into a global corporate market-state, as a new stage in the development of capitalism, a stage we would call mega-capitalism. Observed under conditions of contemporary globalization, the global economic crisis is a process of the centralization of capital on a global scale, which is now occurring under conditions of an imperfect global market structure. Consequently, globalization might be defined as a dynamic process which aligns global production relations (institutional governance arrangements) with global production forces (achieved technology level).
Within such a context we suggest that extant economic theory is lost in the labyrinth of such a transition. We are afraid that the globalization dynamic will transform the extant neoclassical economic into neuro-neoclassical economic paradigm which will raise several outstanding issues for both economists and politicians such as: issue of global governance, issue of democratic deficit, issue of neoliberal paradox of logic, issue of international statistics, etc. Key words: globalization, dialectic, theory, mega capitalism
JEL: A10, O10, F59, F43, F23, E00