Shenzhen Subway Map on It is a world where economic boundaries and, indeed, the sovereignty of nation states is eroding, although more for the weaker than for the stronger states. The doctrine that the free market mechanism at the global level is the most efficient framework of resource allocation, production, and distribution of GOODS is resurgent. It is being translated into national economic policies of various countries through the loan conditions imposed by multilateral institutions such as the WORLD BANK and the INTERNATIONAL MONETARY FUND (IMF), which emerged after World War II. More recently, the open economy policy framework has been embodied into a set of international trade agreements under the auspices of the WORLD TRADE ORGANIZATION (WTO).
Under these circumstances those developing countries, which do not have the institutions, economic infrastructure, and resources to compete in the world market, are vulnerable to rapid economic deterioration, debt, and impoverishment.
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This could become a new factor in accentuating international economic inequality. 2.
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