Political Economy of Globalization: The Impact of Economic Policy on Social Welfare

Abstract

This study discusses how national economic policies are influenced by the dynamics of globalization and their impact on social welfare in Indonesia. In the era of globalization, a country's economic policy cannot be separated from external pressures and influences such as international trade, foreign investment, and global economic institutions. Using the literature study method, this study examines various journal sources related to global political economy and assesses the impact of economic policies on aspects such as income distribution, access to public services, social inequality, and economic growth. The results of the analysis show that inclusive and equitable economic policies are needed to reduce inequality and expand public welfare. Therefore, it is important for the government to design policies that not only focus on growth, but also on equality and protection of vulnerable groups amid the challenges of globalization.