Causes of Globalization
While it is truethat state ventures (or adventures) have at times driven the process, e.g. the colonial conquests, the globalization process has largely reflected market forces, specifically, the exploitation by large and smaller businesses in the world of benefits from trade in commodities, goods, services, capital, and even labor, and of opportunities for new investments and markets.
The process of global economic integration was perpetrated at the behest of World
War II, when the leaders of Britain and the
US helped establishing the World Bank and
International Monetary Fund in 1944 to promote a liberal, capitalist world to counter the shadows of Socialism and
Marxism.
The loans are granted by IMF and WB on the condition that the borrowing country will reduce the state's role in the economy, lower barriers to imports, remove restrictions on foreign investment, eliminate subsidies for local industries, reduce spending for social welfare, cut wages, devalue the currency, and emphasize production for export rather than for local consumption. Such conditions imposed laid the basic foundation to open economies to steer the mechanism of economic integration giving birth to the World Trade
Organization.
By mid 1950s Pakistan had become a favorite candidate for receiving the benefits pledged by President Truman, having joined the network of international defense treaties with the United States. It marked the beginning of an enduring trend in Pakistan to follow every one of the strategies of development devised successively in Washington and promoted globally. Pakistan's own Dr. Mahbub-ul-Haq called this trend the pursuit of
"development fashions" and listed it among his "seven sins of economic planners."
Before development theory and practice could be redesigned in any significant way to address the