With the advent of improved methods of production and new technological researches that are taking place across many countries in the world, most of the people in this world are craving for a better standard of living in the near future. Recently, the Global economy experienced an economic turmoil arising from a recession that had almost shifted the very base of the information technology sector, and thus the monetary gains of the third world countries from the out sourcing business that had sprung up in the late 90s. Major wars and natural calamities have caused disastrous effects on the global economy, which would have otherwise flourished to a better standard. The great depression of 1929 had dreadful effects on the economy and in recent past economic have studied the course of the world economy and forecast a similar depression phase tat will spring up all of a sudden and shatter the temporary monetary balance in the world.
We have seen that several countries have followed the strategy of self-sustained growth by slowly shifting heir techniques of production from labor intensive to the usage of capital-intensive techniques. The capitalist nations or the first world countries have already followed this strategy and shifted its production from the primary commodity and concentrated on the tertiary or the service sectors. In addition, the trade strategies took a new turn from the import of capital goods to export of agricultural commodities to import of services and export of capital goods to the third world nations, which are still using labor-intensive techniques of production for improving their productivity.
But not must have been done to remove the income disparities between the first world and the third world nations. The proletariat of the third world countries are counting every move that they take top survive in this harsh world, and the bourgeois sitting in air conditioned offices in the capitalist nations are swelling with monetary gain and wealth at the expense of the former.
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