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Pro-globalist vs. Anti-globalistPro-globalist vs. Anti-globalist
Kofi Annan, the seventh Secretary-General of the United Nations,
addressed the force of globalization in his quote, “It has been
said that arguing against globalization is like arguing against
the laws of gravity.
Globalization, the integration of the world technologically, economically and
politically, is the most important development of our time. Global production
and global markets offer business organizations extraordinary opportunities for
growth and profits. Globalization is credited with stimulating innovation and
technological progress. However, it is also blamed for increasing the gap
between rich and poor, accelerating the destruction of the environment, and
threatening human rights. The intensity of feelings in the globalization debate
is astonishing. In the last three years, the anti-globalization movement has
staged protests at meetings of the World Trade Organization, the European
Union, the World Bank, the International Monetary Fund, the World Economic
Forum, and the G-8.
Globalization is a powerful real aspect of the new world system, and it
represents one of the most influential forces in determining the future course
of the planet. It has many dimensions: economic, political, social, cultural,
environmental, security, and others. The focus here will be on the concept of
"globalization" as applied to the world economy. This concept is one that has
different interpretations to different people. Partly as a result of these different
interpretations, there are very different reactions to "globalization," with some
seeing it as a serious danger to the world economic system while others see it
as advancing the world economy.
In this essay, we will be covering both the aspects of globalization, potential
benefits and costs stemming from globalization.
World Economy GlobalizationWorld Economy Globalization
The term "globalization" when used in an economic context, refers to the
reduction and removal of barriers between national borders in order to
facilitate the flow of goods, capital, services and labor (although considerable
barriers remain to the flow of labor).
Globalization is not a new phenomenon. It is an ongoing process by which
regional economies, societies, and cultures have become integrated through a
globe-spanning network of communication and execution. It began in the late
nineteenth century but it spread slowed during the period from the start of first
world war until the third quarter of the twentieth century. This slowdown can
be attributed to the inward looking policies pursued by a number of countries
in order to protect their respective industries. However, the pace of
globalization picked up rapidly during the fourth quarter of the twentieth
century.
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There are several sources of globalization over the last several decades:
➢ Technological advances that have significantly lowered the costs of
transportation and communication and dramatically lowered the costs of
data processing and information storage and retrieval.
➢ Trade liberalization and other forms of economic liberalization that have
lead to reduced trade protection and to a more liberal world trading
system.
➢ Changes in institutions, where organizations have wider reach, due, in
part, to technological changes and to the more wide-ranging horizons of
their managers, who have been empowered by advances in
communications.
➢ Global agreement on ideology, with a convergence of beliefs in the value
of a market economy and a free trade system.
➢ Cultural developments, with a move to a globalized and homogenized
media, the arts, and popular culture and with the widespread use of the
English language for global communication.
Positive Impact of GlobalizationPositive Impact of Globalization
Globalization has various aspects which affect the world in several different
ways such as:
Severalfold Rise In Trade:
Emergence of worldwide production markets and broader access to a range of
foreign products for consumers and companies. Particularly movement of
material and goods between and within national boundaries. International
trade in manufactured goods increased more than 100 times (from $95 billion
to $12 trillion) in the 50 years since 1955. China's trade with Africa rose
sevenfold during 2000-07 alone.
Commercial Gains:
Emergence of worldwide financial markets and better access to external
financing for borrowers. By the early part of the 21st century more than $1.5
trillion in national currencies were traded daily to support the expanded levels
of trade and investment.
Emerging Economics:
Realization of a global common market, based on the freedom of exchange of
goods and capital. The interconnectedness of these markets, however, meant
that an economic collapse in any one given country could not be contained.
New employment opportunities:
Pro-globalist argue that glottalization will create new employment opportunities
in various parts of the world. For each office being setup, companies will be
requiring hundreds of people to work in them at different levels.
World Culture:
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Growth of cross-cultural contacts, the desire to increase one's standard of
living and enjoy foreign products and ideas, adopt new technology and
practices, and participate in a "world culture". A better individual access to
cultural diversity which promotes peace and understanding between people.
Greater international travel and tourism. Worldwide sporting events such as
FIFA World cup and the Olympic Games.
Rise in Competition and Better Technologies:
Survival in new global business markets calls for improved productivity and
increased competition. Due to the market becoming worldwide, companies in
various industries have to upgrade their products and use innovate better
technologies in order to face increased competition.
Increase in Information Flow:
Increase in information flows between geographically remote locations. This is
a technological change with the advent of fiber optic communications,
satellites, and increased availability of telephone and Internet. Most popular
second language is English and it is being used as language for global
communication. About 35% of the world mail, telexes, and cables are in
English. About 50% of all Internet traffic uses English.
World Governance:
Some use "globalization" to mean the creation of a world government which
regulates the relationships among governments and guarantees the rights
arising from social and economic globalization. Politically, the United States has
enjoyed a position of power among the world powers, in part because of its
strong and wealthy economy. With the influence of globalization and with the
help of The United States’ own economy, the People's Republic of China has
experienced some tremendous growth within the past decade. If China
continues to grow at the rate projected by the trends, then it is very likely that
in the next twenty years, there will be a major reallocation of power among the
world leaders. China will have enough wealth, industry, and technology to rival
the United States for the position of leading world power. Development of the
system of non-governmental organizations as main agents of global public
policy, including humanitarian aid and developmental efforts.
Anti-globalistAnti-globalist
The anti-globalist zone is divided into two camps. Former belonging to the
developed countries like USA and European nations. There argument is mainly
based on the threat of job loss in these countries due to glottalization and
increase in unemployment of skilled people. The second camp is from
developed and developing countries who are considering globalization as a
threat to there economy, cultural & social values and political independence.
They believe that glottalization or rather neo-liberalization will give access to
there country's economy to few MNCs who will use it for there own benefit
ignoring the overall growth of the country.
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Common concerns of Anti-GlobalistsCommon concerns of Anti-Globalists
Environmental Degradation:
The removal of forests to make way for cattle ranching was the leading
cause of deforestation in Brazilian Amazon from the mid 1960s. Recently,
soybeans have become one of the most important contributors to
deforestation in the Brazilian Amazon.
The Worldwatch institute said the booming economies of China and India
are planetary powers that are shaping the global biosphere.
In 2007, China overtook the United States as the world's biggest producer
of CO2.
At present rates, tropical rain-forests in Indonesia would be logged out in 10
years, Papua New Guinea in 15 years.
A major source of deforestation is the logging industry, driven spectacularly
by China and Japan.
Thriving economies such as China and India are quickly becoming large oil
consumers.
State of the World 2006 report said the two countries high economic growth
hid a reality of severe pollution. The report states: The world's ecological
capacity is simply insufficient to satisfy the ambitions of China, India, Japan,
Europe and the United States as well as the aspirations of the rest of the
world in a sustainable way.
Easier spread of Diseases:
Globalization, the flow of information, goods, capital and people across
political and geographic boundaries, has also helped to spread some of the
deadliest infectious diseases known to humans.
Drug and Illicit Goods Trade:
The Unite Nations Office on Drugs and Crime (UNODC) issued a report that
the global drug trade generates more than $320 billion a year in revenues.
The international trade of endangered species is second only to drug
trafficking. Traditional Chinese medicine often incorporates ingredients from
all parts of plants, the leaf, stem, flower, root, and also ingredients from
animals and minerals. The use of parts of endangered species (such as
seahorses, rhinoceros horns, saiga antelope horns, and tiger bones and
claws) has created controversy and resulted in a black market of poachers
who hunt restricted animals. In 2003, 29% of open sea fisheries were in a
state of collapse.
Anti-Globalist of Developed CountriesAnti-Globalist of Developed Countries
Unemployment because of cheap labor:
They are reasoning that availability of cheap labour in Asia,Africa and South
America will result in companies shutting down there operations in the host
country. Which will result in people being laid off and forced into
unemployment.
Negative effect of economic liberalization:
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A flood of consumer goods such as televisions, radios, bicycles, and textiles
into the United States, Europe, and Japan has helped fuel the economic
expansion of Asian tiger economies in recent decades. However, Chinese
textile and clothing exports have recently encountered criticism from
Europe, the United States and some African countries. In South Africa,
some 300,000 textile workers have lost their jobs due to the influx of
Chinese goods. The increasing U.S. trade deficit with China has cost 2.4
million American jobs between 2001 and 2008, according to a study by the
Economic Policy Institute (EPI). A total of 3.2 million – one in six U.S.
factory jobs – have disappeared between 2000 and 2007.
Concentration of wealth in the hands of few dozen people:
Anti-Globalist in these countries having protesting against the concentration
of wealth in the hands of few dozen people. This unequal distribution of
wealth is voiced by anti-globalist as frightening and dangerous for the
society.
Anti-Globalist of Developing CountriesAnti-Globalist of Developing Countries
Cultural Export:
Anti-globalist view the effect of globalization on culture as a rising concern.
Along with globalization of economics and trade, culture is being imported
and exported as well. The concern is that the stronger, bigger countries
such as United States may overrun the other smaller countries' cultures
leading to those customs and values being faded away. This process is also
sometimes referred to as Americanization or McDonaldization.
Poverty Export:
Anti-globalist see the globalization as the result of foreign businesses
investing in the country to take advantage of the lower wage rate.
One example used by anti-globalization protesters is the use of sweatshops
by manufacturers. According to Global Exchange these "Sweat Shops" are
widely used by sports shoe manufacturers and mentions one company in
particular – Nike. There are factories set up in the poor countries where
employees agree to work for low wages. Then if labor laws alter in those
countries and stricter rules govern the manufacturing process the factories
are closed down and relocated to other nations with more conservative,
laissez-fair economic policies.
There are several agencies that have been set up worldwide specifically
designed to focus on anti-sweatshop campaigns and education of such.
International Inequality:
The World Bank defines inequality as the disparity of income and standard
of living among nations and their citizens.
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The income gap that exists between rich and poor countries has become
substantial. Although great strides have been made in improving income
from poor nations, many regions of the world have 25% or more of their
population living off less than $1 per day (World Bank, 2005). Anti-globalist
think that with the poor people having limited earning capacity, they also
have limited access to the world’s wealth. In 2003, the richest fifth of the
world's population received 85% of the total world income, while the
poorest fifth received just 1.4% of the global income.
The UN's Human Poverty Index is a measurement of poverty that factors in
illiteracy, malnutrition among children, early death, poor health care, poor
access to safe water, vulnerability to famine or flooding, lack of sanitation,
exposure to disease, a diet poor in nutrients, and the absence of education
(Infoplease, 2005).
Inequality among rich and poor nations exists in terms of income and living
conditions. Rich nations have tried to address this issue by distributing aid
packages aimed at specific needs of each poor country. These aid packages
ranged from literacy programs to food handouts and health programs. Poor
nations need more than aid packages; they need economic conditions that
can sustain growth.
Brain Drain:
An opportunity in richer countries drives talent away from poorer countries,
leading to brain drains.
Brain drain has cost the African continent over $4.1 billion in employment of
150,000 expatriate professionals annually.
Indian students going abroad for their higher studies costs India a foreign
exchange outflow of $10 billion annually.
Food Security:
The head of the International Food Policy Research Institute, stated in 2008
that the gradual change in diet among newly prosperous populations is the
most important factor underpinning the rise in global food prices. From
1950 to 1984, as the Green Revolution transformed agriculture around the
world, grain production increased by over 250%.The world population has
grown by about 4 billion since the beginning of the Green Revolution and
most believe that, without the Revolution, there would be greater famine
and malnutrition than the UN presently documents (approximately 850
million people suffering from chronic malnutrition in 2005).
It is becoming increasingly difficult to maintain food security in a world
beset by a confluence of "peak" phenomena, namely peak oil, peak water,
peak phosphorus, peak grain and peak fish. Growing populations, falling
energy sources and food shortages will create the "perfect storm" by 2030,
according to the UK government chief scientist.
Drawback of linking of economies:
The world today is so interconnected that the collapse of the sub-prime
mortgage market in the US has led to a global financial crisis and recession
on a scale not seen since the Great Depression.
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ConclusionConclusion
The pro-globalization lobby argues that globalization brings about much
increased opportunities for almost everyone, and increased competition is a
good thing since it makes agents of production more efficient. The two most
prominent pro-globalization organizations are the World Trade Organization &
the World Economic Forum.
The anti-globalization group argues that certain groups of people who are
deprived in terms of resources are not currently capable of functioning within
the increased competitive pressure that will be brought about by allowing their
economic to be more connected to the rest of the world. This group includes
Friends of the Earth, Greenpeace , Oxfam, G77, the U.S. textiles & European
farm lobby, as well as the Australian and U.S. trade union movements.
For most of the 20th century, rich nations gave aid to poor nations only to see
it squandered. The people of the country must have the political will and
capability to select leaders that choose a path of economic growth instead of
cultural stagnation. Many of these countries are poor and have an unequal
distribution within the country itself due to corrupt government leaders that
view international aid as a source of personal income.
Several of the poorer nations do not want to open up to international trade due
to fear of losing their own identity, when in fact they are losing an opportunity
for its people to move out of poverty.
Many of the poorer nations have an agrarian economy that is labor intensive,
without technology. They are changing over to an industrial economy that is
not as labor intensive. During this transition, they will provide cheap labor
markets for multinational corporations, and wages for these people will
increase.
Globalization is a double-edged sword. It increasingly affectively the way we
live and work positively and negatively, while industrial countries enjoy the
merits of globalization, developing countries have to learn how to compete,
otherwise, will remain dependent on others.
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