Globalization, New Political Economy, and Governance: A Third World Viewpoint

Beyond the external forces of globalization, there are internal structures and institutions related to state and governance that reinforce the globalization process. In this regard, the emergence of “new political economy” founded upon new institutional economics and manifested in new economic policy and new public management, has led to a mode of governance that is supportive of global market forces and conducive to globalization. However, for Third World countries, this new market-driven model of governance has serious implications for their internal socioeconomic conditions and external dependence and vulnerability. In this regard, the article examines such linkages and issues in Third World context.