Globalisation shakes the world
By Steve Schifferes
Economics reporter, BBC News, Bangalore
Globalisation is a word that is on everyone's lips these days, from politicians to businessmen. BBC News is launching a major examination of the subject.
Few places in the world have seen the dramatic effects of globalisation more than Bangalore, the Silicon Valley of India, which is experiencing an unprecedented IT boom that is transforming the prospects of the Indian economy.
For Santosh, a tour guide in Bangalore, life is good. As a result of the IT boom, he has launched his own web-based travel firm, getoffurass.com, and is doing a booming business selling weekend getaway holidays to stressed-out IT workers.
For Dean Braid, a skilled car engineer in Flint, Michigan, life is not so good. He - and 28,000 other workers - were laid off from Buick City when GM closed the complex in 1999, and hasn't worked since.
Globalisation is blamed for many of the ills of the modern world, but it is also praised for bringing unprecedented prosperity.
But what is globalisation, and what are the forces that are shaping it?
Globalisation - good or bad?
The accelerating pace of globalisation is having a profound effect on life in rich and poor countries alike, transforming regions such as Detroit or Bangalore from boom to bust - or vice versa - in a generation.
Many economists believe globalisation may be the explanation for key trends in the world economy such as:
Lower wages for workers, and higher profits, in Western economies
The flood of migrants to cities in poor countries
Low inflation and low interest rates despite strong growth
And globalisation has played a key role in the unprecedented increase in prosperity in the last 50 years, which is now spreading from the United States and Europe to include many formerly poor countries in Asia, including China and India.
In economic terms, globalisation refers to the growing economic...