This aspect of the study were inclusive of works of "economic historians on the development of financial systems" most particularly the "banking systems" worldwide and exactly what the resulting impact will be. (Rousseau & Sylla, 2001) While the two identified "strands of literature" one dealing with domestic and the other international developments, are no always related to one another" but are however, both elements of the story called financial globalization." Definition of a "Good Financial System" states that there are five key components which are: (1) Sound public finances and public debt management; (2) Stable monetary arrangements; (3) a variety of banks, some with domestic and others with international orientations, and perhaps some with both orientations; (4) a central bank to stabilize domestic finances and manage international financial relations; and: (5) Well-forming security markets."
Impacts of Globalization on National Economies
Impacts on the economies of the world have been stated in relation to globalization as well as there being noted an affect of the goods and services production. "Investment, technology, efficiency, productivity and competitiveness are all noted to be impacted by the world's globalization."(Intriligator, 2002) the growth of foreign direct investment (FDI) is at a lucrative rate and this element plays a key role in investment in enterprise, technology transfer, industrial restructuring and in the global enterprise formation initiatives.
Globalization contains both good and bad or positive and negative effects to the individual. Many effects of globalization that are of a positive nature stem from the root of competition. There are however, negative effects related to globalization. Along with the possible increases in output and raising of wages and living standards is the possibility of greater human well being throughout the world. Potential conflicts and costs of globalizations are stated to be of a diverse nature being Regional, National, or International. One of these is described as the "who" that gains from the potential benefits due to the fact that equity problems may be of a 'substantial nature' in the distribution of the gains from globalization among individuals, organizations, nations and regions. This is illustrated through the gains being channeled to the rich nations and individuals which creates an even greater inequality and leads to possible conflicts nationally and internationally. Secondly, a cost/problem exists that stems from globalization is that of "major potential regional or global instabilities that are caused by interdependencies of economics globally.
Section 1 and Section 2 of the work entitled, "Financial Systems, Economic Growth and Globalization" is a discussion of the meaning of "good" or "well-functioning" financial system and accompanying case studies from other countries are developed and the five key components are realized." Those five are 1) Sound public finances and public debt management
2) Stable monetary arrangements
3) a variety of banks, some with domestic and others with international orientations or both 4) Central; Bank to stabilize domestic finances and manage international financial relations, and 5) Well functioning securities markets.
This type of system used in financial aspects can mobilize capital domestically thereby promoting a country's economic development and growth. Stated is that: "A strong convergence effect, as indicated by negative and significant coefficients on initial income and a positive an significant role of financial depth in subsequent growth is common to all four regressions" Fundamental changes in the nature of the developed world countries' economies as well as the business types that the corporations are engaged in are stated to "present a significant challenged to screening an affective SRI mechanism" according to Jorgensen (2000)
Presently there are three accepted tools of SRI which are:
Community Profit is to include returns that are measured in terms of organizational capacity, local economic well-being, quality of life, economic justice such as equal access to capital and the strengthening of political inclusion and democratic institutions, community investment actively build civil society.
The Classical Theory holds that an open market for goods and factors of production (labor, capital and nature) will produce the best possible decision affecting growth technologies, distribution of income and the satisfaction of needs. however it is stated that "Most economists today recognize that the market system in the real world produces some undesirable effects - such as the increasing unequal distribution of wealth and power, the domination of markets by the largest producers, pollution and over exploitation of natural resources." (Panos, 2004) the classical theory in economics does not appear to function properly to the new economists. While the new economists is viewed by the classical theorists as those who simply don't understand the free market theory the environmentalist economists views the classical theorist as one who is self-centered and is of a nature that is characterized by self-seeking and greed. Most of the new contemporary environmental economists are not against growth but are for growth that is not in conflict with the sustaining growth of natural and environmental resources as well.
Summary and Conclusion
The environmentalists are suspicious of the environmental economists thinking perhaps that somehow there is an underlying motive however it all boils down to one specific matter and that is the initiative to sustain the environmental aspect as well as the financial-economic aspect of the present world system along with all the people living within the system and while doing so to leave enough in the way of natural resources and environmental resources so the next generation can survive and procreate as well. The forces driving the globalization of the world can be orchestrated to the gain of all individuals throughout all cultures and other varying demographics and not only for the benefit of a few privileged or elite. Harnessing of the forces and technologies that drive globalization through cooperative and collaborative efforts that cross ethnic, cultural, racial and religious/spiritual lines as well as societal/social boundaries in creating a world environment that sustains all is the only logical answer available in to the crisis that the world is faced with in the years to come.
While no side of this debate is likely to be correct on a one-hundred percent basis, it is likely that each side has several significantly valid points to make thereby behooving each side to listen to the other and as well motivating each side in offering of any successful methods, processes, or informational content that might be utilized by the other side. It is not through division and classification that the totality of the initiative focused upon by economists might be disseminated but as well through logical comprehension of the inherent balance needed in the world system.
Rousseau, Peter L. And Sylla, Richard (2001) "Financial Systems, Economic Growth and Globalization"
Financial Systems, Economic Growth and Globalization" 2001 Oct 15 Online available at http://www.nber.org/~confer/2001/globes01/sylla.pdfr.org/~confer/2001/globes01/sylla.pdf
Bruno, Giovanni S.F. et al. (2003) Measuring the effect of globalization on labor demand elasticity: An empirical application to OECD Countries ISBN 1616-4814. FLOWENLA Discussion Paper 2 available Online at http://www.eastwestmi gration.org retrieved from the Internet 26 May 2006
Gartzke, Erik (2003) War, Peace, and the Invisible Hand: Positive Political Externalities of Economic Globalization International Studies Quarterly Volume 47 Issue 4-Page 561 - December 2003 doi:10.1046/j.0020-8833.2003.00279.x Quan Li21Columbia University, 2 the Pennsylvania State University
Daulaire, Nils, Dr. (1999) International Roundtable on Responses to Globalization: Rethinking Equity and Health jointly organized by the Society for international Development (SID) and World Health Organization (WHO) and the Rockefeller Foundation (RF) July 12, 1999 Online available at: http://www.globalhealth.org/assets/html/drmed3.html 1999 Global Health…