PREPARED BY: BUKET ERBAYRAKTAR

In

this study, globalization concept has been examined with its positive and negative ways and also with its economical, political, technological and cultural dimensions. Then, historical process of globalization has been explained according to three important periods in general of the word. Effects of globalization on the economic development is the other important parts of this study and finally, Turkey experience during globalization process has been analyzed according to three important periods.

globalization concept is called with different idoms such as new world order and global village. Globalization is the one of the controversial issues of world and also Turkey. During the globalization process many of developing countries opened their economics to global market with changes in their recent politics (Olgun, 2006: 143). The aim is to develop welfare level of countries through increasing of international competition and more efficient distribution of sources (Dan o lu, 2006: 218).
Nowadays,

 Globalization

process in the world is not a new phenomenon. According to some of assumptions, globalization process is accepted simultaneously with development of capitalism and modernization but some of assumptions argue that globalization is a process that existed with early history (Karab ak, 2002: 118).

Growth and Poverty" that is a report made by The World Bank to explain the globalization's process. Globalization is divided in three main steps in this report. The first stage of the globalization is placed between 1870 - 1914 period and is characterized by the expansion of the international trade. The liberalization in the 19th century was the perfect environment in a short period for the international trade and investment.
"Globalization,

 The

second stage of the globalization took place between 1950-1980 period and is characterized by the liberalization of the international trade under the General Agreement on Tariffs and Trade (GATT) influence. In this second step of globalization, the states with powerful economies achieved a degree of development. The amount of their exports became larger and larger and their transnational companies expanded quite.

 The

third stage of the globalization process began in 1980 and continued until the present days. It is characterized by development of the telecommunications and huge progresses in the exploration of the cosmic space. This period is often called "Economy without Borders" because the modern technology increased the speed of the long distance financial trades.

January 1995 World Trade Organization (WTO) was created which is the successor of GATT. WTO is the only international organization that establishes the legal bases in the trades between the countries. The main goal of this system is to achieve maximal liberty for the commercial flows without undesirable secondary effects (Radescu, 2008: 2).
In

 Globalization

is a multidimensional concept and these all dimensions are related to each other. Thus globalization is shaped as a result of this interaction. When the globalization is explained, the dimensions have an importance.

 Economic

dimension is the one of most important components of globalization. Also modern economic globalization has three subcomponents. One of these is related to distinctive characteristics of todays international trade. The second subcomponent of modern economic globalization is related to capacity, depth and variety of todays global financial markets and global capital flows.

 The

last subcomponent of economic dimension of globalization is radical transformation in global production. Nowadays, in contrast to traditional nation state structure, production activities are implemented globally and different stages of production are resulted in different geographies. In this process the most important agency is multinational companies.

 These

companies act in many economic area such as portfolio investments, direct foreign investments, international good and service trade, tourism. On the other hand today, the most important characteristic of production process is to focus service production instead of good production and so the most important production factor transformed to qualified human resource (Bayar, 2009: 27-28).

 Political

globalization can be defined as structural transformation in todays political power, authority, and regimes. Global politics is shaped by interaction of nation-state, overstates institutions, local governments and non-governmental organizations. One of the most important characteristic of global politics is to become more invalid of distinction between traditional domestic and foreign policy in time (Bayar, 2009: 28-29).

One of the most important trigger of globalization is the communication revolution that is developing rapidly. This revolution is also called as Third Industry Revolution. Its basic characteristics are: 1) To benefit from microprocessor and satellite technology in data transmission. 2) Hiding, storage, and processing of knowledge. 3) To benefit from digital environment for processing of knowledge. 4) Decline in production and usage costs of communication devices (Bayar, 2009: 29).

 Globalization

creates important effects on

culture. Especially a result of communication revolution, there is a high level of interaction among individuals and societies in general of world. The cultural dimension of globalization also deals with gender issues, questions of identity, and the social construction of reality, as well as the production and consumption of media(Bayar, 2009: 30).

recent years the events show that world income distribution is deteriorating and new income imbalance is threatening economics of countries. The gap between developed and developing countries is growing gradually. At the same time in the same country, income distribution among individuals is deteriorating.
In

 There

are many positive or negative effects of globalization on the economics of countries. Positive effects are developing of foreign trade, increasing of multinational companies, improving of competition conditions, removing of obstacles that restrain free movement of international finance, increasing of foreign investors and investments and, economic development.

effects of globalization are increasing of economical dependency of nation-states, deteriorating of balance of trade and money and capital movement, emergency of production insufficiency in economics of countries and, increasing of poverty. According to statistical data, GDP is increasing since 1980 in general of the world. At the same time population of countries is increasing rapidly so this situation effects economic growth and development negatively (Karab ak, 2002: 119-120).
Negative

 Globalization

process in Turkey started between 1980 1983 period and completed between 1989 1990 period. There are four important turning points of globalization in Turkey. The first one is realized between January 24 1980 and November 1983. In this period Stratocracy implemented stability and structural coherence programs so prices under the control were liberalized and value of Turkish Lira was depreciated.

 The

second period of globalization of Turkey started with coming to power of ANAP in 1983. In this period both the trade regime and capital markets are liberalized on a large scale. 1983 1987 period was called exportoriented growth. During this period growth was realized through export and rate of outward-oriented economy increased from 63% to 80%. Also average 6.5% growth rate was realized in Gross Domestic Product (GDP). The third period of globalization was realized through liberalization of capital markets completely in 1989.

 Between

1980 1990 period of globalization in Turkey primarily good markets opened to foreign market and import politics under the trade quotas was liberalized. Exchange rate was made flexible through a high devaluation and industry was encouraged to export through subsidies. After 1990s Turkish economy has became an outward oriented completely. Foreign trade also liberalized through custom union that was established with European Union in 1996.

 When

the income distribution and poverty rates are analyzed, a disturbance is seen during transformation of economy politics in Turkey. Inequality in income distribution has been increasing from 1970s to 2000s because of effects of globalization. Also social expenditures are directly related to poverty but in Turkey public incomes are used to pay debts and interest of debts instead of enhancement of income distribution and poverty.

 Turkish

economy has not had an achievement on removal poverty issue since 1980s. In addition, Turkish economy experienced from 1980 transformation on education. Private education expenditures are more than public education expenditures and this imbalance effects income distribution between rich and poor people because low income people couldnt benefit from private education.

 Globalization

is the process of the complete integration of the constituent parts of the world economy with each other and with the international system. In order to benefit from the globalization process, the quality of a countrys macroeconomic policies is the key instrument. Particularly free market and sound money should be established strongly.