2.5 -3 billion people earned $2 a day, which is 7% of global income and have extremely little power of influence. They have become irrelevant but remain a potential market for the wealthy elite. The prime beneficiary of global financial capital are 6.000 000 people or 0.1% of the global population. They are mostly
Americans, Europeans, and Japanese, and two from Africa. They control $27.2 trillion or 85% of the global income, and their income is growing at a rate of 7% a year. The number of billionaires have increased from 101 in 1993 to 476 in 2002, and their income increased from $451 billions to $1.4 trillions.
Global market economy is not subject to control by any national or international institution. International trade agreement such as
GATT (General Agreement on Tariff and Trade), NAFTA (North
American Free Trade Agreement), reduced national borders and the whole world is combined into a single net work dependent on computerized financial transactions that are taking place in the richest countries. Rapid proliferation of credit cards is increasing the wealth of the six million financial elite (HNWI= high net worth individuals).
This kind of economy is intensifying competition, reducing the power o governments, providing asymmetry information, economic misinformation, and hegemonizing the world cultures.
IMF (International Money Fund): is based on an outworn assumption, that the market is efficient on its own without government interference. But when there is unemployment, financial crises, and bankruptcy they seek the help of the government. The IMF structural policy is to help…