What are the main challenges facing the contemporary world economy?

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What are the main challenges facing the contemporary world economy? The contemporary world economy is complex, but the main challenge we face today is uneven development. Development in today’s society represents the basic characteristics of capitalism as a mode of production and consumption. This essay will explore development discourse in terms of analysing how trade impedes the growth of an equal global economy, due to it being laden with uneven power relations and how it is subjected to political corruption. This essay will also explore how the spatial organisation of production creates a problem for the world economy due to unbalanced flows of finance, and how resource abundance can actually become crippling for developing economies. Trade is a phenomenon which underpins economic growth and globalisation. Trade serves as an activity which increases production and consumption of a country under normal capitalist conditions; it encourages the exchange of global resources, it also increases communications which assist global awareness and the sharing of knowledge. However when analysing how global trade operates between countries, it is tangible that it is clearly not a fair means, and those more wealthy nations benefit to a far greater extent from trade than others. This capitalist behaviour is the basis which makes trade discourse an example of how global economic growth is stunted (Dicken, 2003). Quotas, prohibitions and tariff taxation, which are all government induced, curb the ability of totally ‘free’ global trade, as they discriminate between certain nations on a political and financial level. This generally results in poorer countries’s capability to export goods and generate their own capital. However the Uruguay Round (1986-1994) led to a reduction of developed countries trade tariffs by nearly 40%, although MEDCs then introduced NTBs which are arguably even more detrimental to an advancing global economy (Bacchetta, 2001). Rather than having...
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