Main Challenges Facing the Contemporary World Economy Essay examples

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The world economy is a dynamic, multifarious and complex entity. The contemporary economy can be distinguished from past economies simply because technology permits a greater degree of interdependence than has previously been possible. An integral facet of the 21st century economy is what Harvey (1989) identifies as ‘Time-Space Compression’, the phenomenon described by Larsson (2003, pg.89) as “The process of world shrinkage”. This “shrinkage” allows faster capital exchanges and a rapid movement of commodities. Such close spatial relations create a degree of economic dependence, as global interrelations have the potential to become far more entrenched than before. Although Graham (1998) regards space as having been ‘conquered’ by …show more content…
Brandt (1980) identifies global inequality as a barrier to development. However, Brandt’s argument regards developed nations as entirely developed, and underdeveloped nations as entirely underdeveloped, with this binary perspective overlooking the significance of internal inequalities. Wilson (1985) found that life expectancies in Chicago decrease from 77 to 54 in socio-economically deprived areas. Grasmick (1993) attributes this to crime and delinquency within these poorer areas, identifying that in the majority of Chicago’s deprived areas, the dominant ethnicity is often that of a minority. Fenelon (2007) posits the idea that minorities are not fairly politically represented and have minimal economic presence. Fenelon succinctly identifies the result of inequality, arguing that minorities, whether economic or ethnic, participate less within politics and society, emphasising the repercussions of economic disparity.
However, within developed nations, it is valid to assert that inequality is, to an extent, an individual problem. Cowell & Champernowne (1998) argue that economic inequality is the fault of the individual, stating that those with the desire to earn money can do so with hard work, intellect and persistence. However, Cowell & Champernowne’s argument is dependent upon the notion that the individual has the option to progress. In most developed nations, it is possible (although difficult) to move up what Powell

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