<P> By consideration financial crisis one key difference is the monetary regime . In the 19th century it occurred under the fixed exchange rates of the gold standard . But in the 20th century it took place in a regime of managed flexibility . Furthermore, in the 19th century countries had developed effective lenders of last resort, but the same was not true at the periphery and countries there suffered the consequences . A century later there was a domestic safety net in most emerging countries so that banking panics were changed into situations where the debts of an insolvent banking system were taken over by the government . The recovery from banking crisis is another key difference . It has tended to begin earlier in the recent period than in the typical crisis episode a hundred years ago . In the 19th century there were no international rescue packages available to emerging economies . But in the recent period such rescues were a typical component of the financial landscape all over the world . </P> <P> The flows information were an important downside in 19th century . Prior to the Transatlantic cable and the Radiotelephone, it used to take very long for information to go from one place to another . So this means that it was very difficult to analyze the information . For instance, it was not so easy to distinguish good and bad credits . Therefore, the information asymmetry played a very important role in international investments . The railway bonds serve as a great example . There was also many contracting problems . It was very difficult for companies working overseas to manage their operations in other parts of the world, so this was clearly a big barrier to investment . Several macroeconomic factors such as exchange risks and uncertain monetary policies were a big barrier for international investments as well . The accounting standards in the U.S. were relatively underdeveloped in the 19th century . The British investors played a very important role in transferring their accounting practices to the new emerging markets . </P> <P> The first phase of "modern globalization" began to break down at the beginning of the 20th century, with World War I . The European - dominated network were increasingly confronted with images and stories of' others', thus, then took it upon themselves to take the role of world's guardians of universal law and morality . Racist and unequal practices became also part of their practices in search of materials and resources that from other regions of the world . The increase of world trade before beginning in 1850 right before World War I broke out in 1914 were incentives for bases of direct colonial rule in the global South . Since other European currencies were becoming quite largely circulated, the need to own resource bases became imperative . The novelist VM Yeates criticised the financial forces of globalization as a factor in creating World War I. Financial forces as a factor for creating World War 1 seem to be partly responsible . An example of this would be France's colonial rule over most of Africa during the 20th century . Before World War I broke out, there was no specific aims for the wars in Africa from the French, which left Africans in a "lost" state . Military potential of Africa was first to be emphasized unlike its economic potential...at least at first . France's interest in the military potential of French Africa took a while to be accepted . Africans in the French army were treated with feelings of inferiority from the French . As for the economic incentive for colonial rule came in 1917 when France's was faced with a crisis of food supply . This coming after the outbreak of the war which had left France without the ability to support itself agriculturally since France had a shortage of fertilizers and machinery in 1917 . </P> <P> Globalization, since World War II, is partly the result of planning by politicians to break down borders hampering trade . Their work led to the Bretton Woods conference, an agreement by the world's leading politicians to lay down the framework for international commerce and finance, and the founding of several international institutions intended to oversee the processes of globalization . Globalization was also driven by the global expansion of multinational corporations based in the United States and Europe, and worldwide exchange of new developments in science, technology and products, with most significant inventions of this time having their origins in the Western world according to Encyclopædia Britannica . Worldwide export of western culture went through the new mass media: film, radio and television and recorded music . Development and growth of international transport and telecommunication played a decisive role in modern globalization . </P>

The proponent country of the new silk route in the present world is