d powerful economic institutions, like The World Bank and The International Monetary Fund. The recent prosperity of economic globalization has been caused by free trade. In fact, the "total value of world trade exploded from $57 Billion in 1947, to an astonishing $12.6 trillion in 2005"(Steger 42). By creating a free and global market place, both pros and cons have also been created. The pro being the variety of goods and services contributing to the enhancement of consumer choice, the increase in global wealth, secure peaceful international relations, and spread of new technologies around the world. "The gross national product (GNP) of APEC (Asia- Pacific Economic Corporation) economies over the past decade has increased by a third, the number of people living in poverty has fallen by a third, and literacy rates are among the highest in the world, thanks to education expenditures that have risen faster than GNP"(Greenwood 10).
             In the recent decade China has shifted completely from being import driven to now a nation driven by exports. APEC, (Asia-Pacific Economic Corporation) "The eight economies" compelled and promoted "high savings, kept a tight rein on fiscal spending, and pursued a government-led export-oriented industrial policy"(Greenwood 8). They maintained relatively high-quality primary and secondary education, and largely flexible labor markets. The model worked. State involvement in capital formation and allocation allowed the countries to quickly mobilize domestic savings and direct them to infrastructure and export production. The model yielded exceptionally high investment in the eight economies "more than 20 percent of GDP on average between 1960 and 1990"(Greenwood 11), well- endowed human capital and high levels of productivity.
             However every coin has two sides, and globalization can lead
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