The process of globalization has its roots in the two world wars: World War I and World War II. The desire to replace the League of Nations with one international organization that all states of the globe would be members was the greatest height of globalization. The great nations of the United States, the Soviet Union, and the Great Britain convened a meeting in San Francisco in 1945 with the sole intention of forming an international body; the meeting led to the formation of the United Nations.
The meeting also gave a go ahead to the establishment of the International Court of Justice; the court based at The Hague in the Netherlands deals with disputes among states. Since the formation of United Nations, the rules, and the structure of the international system have drastically changed: the international law, for example, has shifted focus from states to individuals.
Consequently, there is a shift to emphasis on people and humanity and as a result, state sovereignty has an inclination to protect human rights, peoples law, and human environment. There are developments of new norms aimed at protecting the universal community interest (Capaldo 6).
Main Analysis
The evidence that the process of globalization is uneven in the global system was manifested when the United Nations was formed and when the need to enact the principle of human rights in the UN charter arose. Both the Great Britain and the Soviet Union rejected that enactment due to the fear of the fact that the enactment of human rights could give power to the British colonies whereas according to the Soviet Union, the enactment of human rights could put in danger its desire to elongate its sphere of influence.
Another instance that shows the uneven application of the process of globalization was the desire by the United States of America to disagree with Chinas quest for the provision on the equality of all races. This rejection to enact and to incorporate human rights in UN charter by the great powers despite much pressure and demand from the countries of Africa and Latin America demonstrated the high handedness by the major powers (Anon 200).
The universalism of human rights though linked to Non Governmental Organizations (NGOs) is violated. The foreign policy of the United States of America has demonstrated double standards in the enforcement of human rights. This foreign policy has tried to avoid traditional instruments like policy of trade; they have pursued their agenda through supporting local non-governmental organizations to enforce human rights and ensure the prevalence of rule of law.
The United States of America advocates for globalization passively as opposed to enforcing the standards coercively. Concerning the formulation of human rights, the factors that always come to play are the geopolitical power balance and the struggle for control of primary means of existence and the arms race (Capaldo 6).
With regard to the labor market, globalization has made the labor market more rigid and hence the need to make it flexible. The labour market has to be more flexible as this will likely spur even distribution of investment and hence even globalization process. There is a debate that this idea of flexible labor market only exists in principle and absent in practice.
This imbalance with regard to the flexibility in labor market, though it was a demand by the states the investors could not reciprocate. Furthermore, the treatment of slaves by some countries was the highest form of violation of the principle of equality and dignity of all individuals. The treatment accorded to the slaves was of inhuman kind since it involved separation from other people and their communication cut off (Bauman 6).
The global labor market has enhanced global mobility that is now a major characteristic of work and labor. Global labor market presents a lot of risks and opportunities to both the national and international labor markets since it allows national economies to be visible in labor market (Mooney and Evans 108).
The powerful countries do not follow all the legal process when addressing matters of labor rights and no state has devised legal framework for addressing labor rights. Consequently, during the negotiation on the formation of the World Trade Organization (WTO), the establishment of social clause that could govern agreements was ignored.
Unavailability of social clause in the charter presents many social consequences since it suspends any link between social rights and the laws governing international trade consequently allowing for the violation of social and labor rights. The United States of America has a scheme of imposing economic sanctions on states that do not demonstrate respect for human rights yet they allow for violation of labor rights at the WTO (Kaufmann 4).
Concerning ethics and political institutions, globalization has put the existence of the established institutions, social policies, and international ethics at risk. These international ethics include the quest for self-determination, migration, and survival of labor and the ethics of social interactions.
Western countries are advocating for self-determination by states yet they tend to influence and dominate other countries. The principle of non-interference in national matters has been violated despite it (the principle) being enacted in the United Nations charter; western and other powerful countries have interfered in the affairs of developing countries because of their (developing countries) weak economies (Day and Masciulli 3).
Conclusion
Globalization has many positives but equally it has many ills particularly perpetuated by powerful countries that have already developed economically. This is evident in the spheres of international system like the political institutions, labor laws, and internationally recognized ethics.
Human Rights, which form the core part of the UN charter, are applied unequally by the nations of the globe. The status and privileges accorded to humanity by the Universal Declaration of Human Rights are violated. Powerful nations have watered down human rights and resorted to formulation of policies that violate instead of protecting human rights of developing countries.
Works Cited
Anon. Inventing human rights. New York: Cengage Learning, n.d. Print.
Bauman, Zygmunt. Globalization: human consequences. Cambridge: polity press, 1998. Print.
Capaldo, Giuliana. The pillars of global law. New York: Ashgate Publishing, 2008. Print.
Day, Richard and Mascuili, Joseph. Globalization and political ethics; Volume 103 of International studies in sociology and social anthropology. New York: BRILL, 2007. Print.
Kaufmann, Christine. Globalization and Labor Rights. The Conflict between Core Labor Rights and International Economic Law. New York: Hart Publishing Ltd, 2007. Print.
Mooney, Annabelle and Evans, Betsy. Globalization: the key concepts. New York: Taylor & Francis, 2007. Print.
The article, titled Globalization challenges and new Arab regionalism: Towards a new deal of South-South integration written by Mohieddine Hadhri, brings forth the challenges being faced by the Arab world due to globalization. It is a review of the efforts made towards the regional and economic integration of the Arab world. Considering the great potentials within the Arab world, there is a need to establish cooperation to expedite the regions progress. Each one of the Arab countries has its positive aspects, and if the integration of these countries is successful, the region will become one of the most powerful economic forces in the world.
The report covers the previous efforts made towards regional integration and their outcomes. The report suggests the necessity of regional economic integration to counter global economic challenges. The impacts of the non-existence of such integration are also discussed. The progress made so far towards the integration process and the required strategy to expedite the process are also outlined.
The purpose of this report was to understand various aspects of regional economic integration. Such aspects could be known by referring to authentic sources of information. The author used a quantitative research methodology to gather information. Various information sources were used, such as scholarly articles, official reports, proceeding of conferences, books, news, authentic surveys, and official documents.
After going through the report, the reader has an idea of the new regionalism theories and their significance to the Arab world in todays globalization scenario. To facilitate a better understanding of the issue, the report includes a brief background of the initiatives that have been made so far. The reader is also informed about the efforts being made by various Arab nations towards regional economic integration.
The formation of The Arab Maghreb Union (AMU) and the Gulf Cooperation Council (GCC) was a significant move. The report discusses the benefits of the formation of such groups; a significant development in this direction is the introduction of a unified currency among the member nations. The report discusses the Greater Arab Free Trade Area (GAFTA) in detail and brings forth the weaknesses and obstacles being faced by GAFTA. A comparison of the performance of various trading blocs suggests that GAFTA is far behind other global trading blocs in terms of the share in world trade. The main problem cited by the author is the lack of cooperation among the Arab nations. Over the years, the escalation in the price of hydrocarbons has further necessitated cooperation among the Arab nation so that the benefits might be shared.
The author suggests that economic integration is indispensable for the economic growth of the Arab world. Increase in inter-Arab trade is an essential component of economic growth of the region. The Economic and Social Council of the Arab League can play a major role in the integration process.
Having a common currency among the Arab nations can further harmonize the economic system and its benefits. To facilitate the transportation of goods between the member nations, there is a need to have better roads and communication system. The Arab Maghreb Union should interfere and help in resolving the Western Sahara dispute to achieve better economic performance for the Maghreb region. There is an urgent need for the Arab Mediterranean countries to unite for a common economic cause, i.e., to avoid competition among them as far as trade with the European countries is concerned. Finally, the eradication of poverty in various Arab nations can help in decreasing the political turmoil and extremism prevailing in the region. The reader needs to understand the importance of the regional economic integration of the Arab world.
The essay is a critical examination of the impacts of globalization on national sovereignty. To adequately address this issue the concept of sovereignty is defined, an illustration of how globalization impacts on sovereignty is brought to light and finally the major drivers of globalization as well as their effects on national sovereignty are well tackled to give readers more insight.
The concept of sovereignty is usually seen in a three-fold perspective and include; absolute supremacy over internal affairs within a countrys territory, absolute right to govern its citizen as well as freedom from any external interference in the previously mentioned matters Sassen, (1996); a country or state is deemed to be sovereign and autonomous when it is considered to have the capability of making and implementing laws within its jurisdiction as well as carry on its functions, duties and responsibilities with no external powers or aid.
Similarly, it does not acknowledge any higher power or authority above itself. A state can thus be sovereign or not on the basis of the definition provided. On the other hand globalization refer to free movement of people, goods and services and capital between and among countries made possible by the advent in technology information. As a result the world has no doubt turned into a global village fashioned by interconnectedness and interdependence.
The major drivers of globalization include improved transportation and communication systems. With this people can travel within days from their own countries to others thousands of miles away.
This is attributed to technological improvements. Additionally, the desire of nations to enhance foreign direct investment by lowering issues relating to permits and tariffs has encouraged globalization. Similarly the need to join hands in the desire of nations to be stronger in terms of fighting for better economic, political as well as environmental stability has also encouraged globalization.
In the past, countries especially from the west and Middle East had very little in common concerning economic interdependence. However, the recent changes have seen to it a country like China being compelled to mend her relation with the western counterparts and vice versa.
To be in a position to sell their goods and services, the relationship is vital which has a greater probability of making sovereign states to compromise one of the attributes of autonomy/sovereignty. This idea contravenes the concept in which countries opt to operate and carryout their affairs without external influence (Wang, 2004).
Another attribute that comes with sovereignty as suggested by Yip, 2003 is the countrys ability to fully protect her subjects from any kind of harm. Through free market which is a product of globalization, goods and services have found their way to other countries where the same are not produced or do not meet the demand.
There are instances that some goods or products are sold to these countries and without the knowledge of the recipient country, such goods are defective and can lead to serious health problems. This can be exemplified by such products as milk, beef, fish and poultry that have in the recent years caused serious health complications in the Middle East (Sassen, 1996).
Similarly, it is a fact that there are a number of multinational corporations that have spread all over the world. In the recent past, despite the fact that the corporation offered employment to the locals which is in line with the host governments wishes, the top positions are usually held by expatriates especially from the original country where the corporation comes from (Wang, 2004).
This has been possible through a number of corporations laws that override the interests of the host nation hence negatively impacting on laws and regulation that serve to make the host state autonomous.
Additionally, there are instances where multinational company have bought some of the factors of production such as land at higher prices leaving the local citizen either landless and squatters (Yip, 2003). From the review of the concept of sovereignty and globalization, the former is adversely affected by the later. However it is worth noting that globalization has brought some positive influence on the concept of sovereignty for instance improved democracy.
References
Sassen, S. (1996). Losing control: Sovereignty in an age of globalization. New York: Colombia University Press.
Wang, G. (2004). The impact of globalization on state sovereignty. Chinese Journal of International Law, 3(2): 473-483.
Yip, G. (2003). Total global strategy II. Upper Saddle River, NJ: Pearson Education, In.
The Globalization Paradox by Dani Rodrik, New York: Norton & Company, 2011. 321 pages.
About the author
Professor Rodrik obtained his Ph.D. in economics and MPA from Princeton University. He also holds an A.B. from Harvard College. As of July 2013, he was holding a position as professor in the Institute of Advanced Study in Princeton. He worked at the J.F. Kennedy School of Government, Harvard University, before the current position. He has received two major internationally-recognized awards in political and social sciences (Dani Rodrik: Bio and C.V.).
He once held the editors position in a major journal. He has addressed several major memorial lectures across the globe. His articles have been published in several high-ranking journals in economics and political science. His 1997 book Has Globalization Gone Too Far? was highly regarded as important in political economics in the past decade. It appears that Rodrik was skeptical about the nature of globalization a decade before the global financial crisis (Dani Rodrik: Bio and C.V.).
Summary of thesis
Rodriks main theme is that globalization needs to be regulated because of the absence of a global institution that sets rules and all nations comply. Rodrik starts to build his argument by examining the form of globalization that existed before the end of the 19th century. He looks at Hudson Bay Company and England East Indies Company among others.
He examines the role that these companies played. They were not only enterprises but also played the role performed by public institutions. International trade is limited by higher transaction costs than local trade.
Companies that operated before the end of the 19th century was granted monopoly status to allow them recover from higher transaction costs. Rodrik also looks at the companies that have succeeded in the 20th century in the period of globalization. He identifies that the East Asian countries succeeded because they regulated globalization to their advantage.
Review of the introduction
The author has produced a satisfying introduction that captures the major parts of his study. The author starts by identifying the global financial crisis as a failure of the global financial markets. He claims that the crisis spreads so easily from Wall Street to other financial centers around the world because of commingling of balance sheets brought by globalization (Rodrik xi).
He identifies the financial crisis in the Asian countries in early 2000s as an effect of international investors withdrawing money from the Asian countries as confidence on Asian economies was dwindling. It made the situation worse for the Asian countries.
The author does not explicitly claim that globalization is considered a threat because it has failed those that intended to benefit from it the most. Developing countries claim that the advanced economies set the rules for the rest to follow which might have created a bias. He considers Paul Samuelsons remarks that Chinas gains in globalization may well come at the expense of the United States (Rodrik xiv).
The author does not explicitly claim that globalization has been considered a threat because the US and advanced economies in Europe as losing to East Asian countries. However, he explicitly claims that the countries are losing because the East Asian countries are flouting the WTO rules to gain competitive advantage.
Rodrik praises Bretton Woods Compromise as the strategy that should remain untouched. He links the success of the East Asian economies to adherence to the Bretton Woods standards which allow globalization with regulation (Rodrik xviii). He looks at the effect of outsourcing to advanced economies (Rodrik xv). Markovic (49) has given a better elaboration on how Eastern Europe countries benefitted from the formation of the EU and through Western Europe outsourcing.
The author identifies the political trilemma of the world economy. There are 3 issues that cannot be pursued at the same time and be obtained. He identifies democracy, national determination, and economic globalization (Rodrik xviii). A nation can only pursue two of these goals and forego the third each time. The author is keen to establish that national goals should be prioritized before the global agenda.
The reader easily identifies the authors side of making choices in several other occasions. The author clearly states that leaders should be decisive.
In the introductory part, the author explains the reason why a global market cannot have a democratic global governance institution. He states that there are too many differences and among nation states for their needs and preferences to be accommodated within common rules and institutions (Rodrik xix). Later, he uses the same idea to claim that China creatively used institutions designed to meet its unique economic system. The author is clear in providing reasons of why others succeeded when others failed.
The author is not reluctant in identifying that economists have weaknesses too. They fashion new economic ideas in conferences and publications. The mainstream economics are heard and opposing voices are covered up in the new fashion (Rodrik xxi).
It is a well written introduction because it gives an accurate summary of the books content.
The main body
Rodrik builds his argument from an old story. He analyzes Hudsons Bay Company (HBC) which was known as Governour and Company of Merchants Adventures. The author appears like a skilled storyteller from the point he chooses to start his story. He starts his story with an auction of beaver skin at Hudson Bay (Rodrik 4).
He captures the readers suspense. The reader would like to know how all of a sudden someone has accumulated a large stock of high quality beaver stock after a long period of shortage. Later, the reader is to understand that the large stock was a result of international trade. He indirectly captivates the reader about the benefit of international trade. It created plenty of a commodity that had become expensive because of its scarcity.
The author expresses the importance of institutions in conducting business. HBC performed the functions of a government when engaging in trade. It did the work of the police force, the army, and the central bank, among other functions (Rodrik 7). The company performed these functions because the institutions that perform these functions were lacking. The author seems to justify the monopoly profits. They are used to cover the high transaction costs.
Rodrik looks at both sides of the arrangement. It had the benefits of creating stability but the rules were set by a party with conflicting interest. HBC sets the rules when it was also the sole trader with the American Natives (Rodrik 9). The end result was that prices received by the natives were extremely low when prices paid to foreigners were very high (Rodrik 12).
He goes ahead to claim that the same situation always happens when dealing with advanced traders. The reader is left wondering whether the same situation happens today. It could fit the same situation that developing countries complain the system is biased because it is the big boys that make the rules (Rodrik xiv). The author does not explicitly match the case to modern trade but his description is well taken.
The author has used them to show the benefits of institutions, and the impact of transaction costs on international trade. He uses the HBC and English East India Company. He emphasizes their similarity to modern companies. These companies paid dividends to shareholders back at home (Rodrik 7). It is much the same as modern companies.
The next part that builds the authors argument is the East Asia countries. The author examines these economies that have caught up with advanced economies despite starting at low level incomes. The readers would like to know what methods these countries used to succeed. The book accomplishes this goal. He explains the similarities among these nations.
They regulated globalization to their advantage. These governments spent heavily on investment before the private sector could take over (Rodrik 145). Even though the government enterprises failed, their main intention was to give demonstrations and training (Rodrik 154). It had worked in Japan before India and China took over. He draws the conclusion that economists have overlooked government intervention in the economic development of East Asian countries.
The author looks into South Korea and Taiwan development which started in the 1960s (Rodrik 147). These countries development was mainly driven by regional tension which is not different from the advanced economies in the world.
The author explains why different studies may claim that economies open to international trade are successful. He claims that studies had grouped countries that had regulated international trade as open to international trade. He explains that neither Taiwan nor South Korea exposed its nascent industries until well into the 1980s (Rodrik 147).
China is considered remarkably successful because by 1978 it was mostly rural (Rodrik 150). The author praises Chinas institutional innovation. Sindzingre also emphasizes that institutions essence depends on contexts (3). The contexts can be based on transaction costs, and competition among other factors.
Chinese leaders did not follow conventional policies that were being advocated by the World Bank or other international organizations. The author also states that China was late to join WTO membership so that it could not be forced to apply rules that do not meet its needs (Rodrik 154). In his explanation, Rodrik shows that China had been gradually preparing to open up to international trade.
China was favored by a large domestic market. Investors were attracted to the large market which gave Chinese leaders an advantage to impose their rules on FDI. The rules favored the transfer of skills to Chinese citizens. Foreign investors were required to integrate a high Chinese content in their labor force up to 70% within a short period of time (Rodrik 153).
It forced investors to train local employees. Lee & Vivarelli discuss that globalization fails in some countries because most FDI are characterized by labor-saving and skill-biased technologies (16). Chinese leaders used a policy that made FDI beneficial to local human resource. Rodrik explains how the Chinese policy was able to regulate the common effect of FDI on employment.
Lee & Vivarelli (8) explain that Stolper-Samuelson (SS) theorem that predicts that FDI will demand low-cost labor in developing nations fails to apply. FDI usually involves technology-based skills that leave out the local labor force. Rodrik uses China to explain how to overcome such an impact.
The author shows through massive examples that economies need the helping hand of the government especially when they lack competitive advantage in international trade. He explains the paradox of globalization after examining East Asia countries. These are countries that have benefitted from globalization.
Most of them had set trade restrictions before catching up with advanced economies. He has also looked at poor countries and described their government withdrawal from investment. The author claims based on these cases that reaping globalization gains may require an increase rather than a decrease in international transaction costs (Rodrik 157). The reader can clearly see the basis of his point. Mauritius also followed the same restrictions as East Asia countries.
Rodrik view on the impact of globalization is similar to other authors. Sindzingre (12) claims that globalization has been pro-poor in other regions when it has done well with others. Lee & Vivarelli (12) also discuss that globalization has brought exceptional growth in China but it has increased poverty in Sub-Saharan Africa.
Rodrik has elaborated on the pressure put on developing nations to carry out structural reforms to gain from globalization. Markovic (27) discusses that globalization has influenced the rapid reforms seen in nations and organizations. It has an impact on workplace diversity. People from different backgrounds pursue common objectives. In the developing nations, the benefits of institutional reforms may have benefits far from globalization.
In the revisionist theory, the author criticizes those that led poor countries to open up to international trade without telling them that it is not the only item needed for success. He also emphasizes that infant industries need nurturing (Rodrik 163). Brazil had stabilized, liberalized, and privatized but still could not reap the benefits of globalization.
The author is also keen to examine that Brazil and India did not benefit from globalization because of the import-substituting industrialization (ISI) (Rodrik 168). The system was not focused on exports, but it helped to upgrade local expertise.
Rodrik gives a good explanation on why nations fail to achieve economic development. The main reason is that they follow rules that do not match their needs. Rodrik claims that most programs are ready-made, undifferentiated, and fails to target an economys most severe bottleneck (Rodrik 175).
When the policy makers target many areas, they spread resources over many programs which become inadequate to boost economic development. He proposes that nations should identify the part that would create the biggest improvement and focus on it. To strengthen this argument, the author has used Chinas economy. China started with motivating agriculture in the 1970s, industries in the 1980s, foreign trade in the 1990s, and now it focuses on the financial sector (Rodrik 178).
Rodrik focuses on the success of East Asia companies and other advanced economies amid globalization. He claims that per capital income is high in advanced economies. Bruff (115) and Cobbett & Germain (111) establish that the Occupy Wall Street movement is against inequalities created by industrialization and globalization.
Lee & Vivarelli (12) also claim that globalization has increased inequality in a majority of countries. Ekins & Voituriez explain that for sustainability the impact of trade liberalization on income and environment need to be assessed together (113). Rodrik overlooks the distribution of income in economies that have benefitted from globalization.
Rodrik appears to claim that there is no government intervention in economies that fails to catch up with globalization. The reader may think that there is absolutely no government intervention in globalization. There is government intervention even in advanced economies through tariffs and other methods. The EU carries out protectionists strategies on its agricultural products (Ekins & Voituriez 289).
Andrews explains that government intervention also appears to have changed from public Keynesian to private Keynesian such as low taxes, the credit card (168). Public Keynesian involves increased government expenditure. There is always government intervention. Only its methods have changed. By Rodrik calling for government intervention, he appears to call for more trade restrictions in favor of local industries.
Rodrik appears to prefer more restrictions which are unpopular. The HBC adventures brought abundance of beaver skins to London. Caprio explains that just as goods can be obtained more cheaply if foreign supply is permitted, so can capital (269). Caprio explains both the benefits and risks involved with international financial markets.
Rodrik explains how China has reduced the exposure of risk from which other nations can learn. Caprio mainly focuses on global financial markets when Rodrik has focused on openness to international trade.
The author critically examines the works of other authors. He quotes Anne Krueger who wonders how a common economic theory of comparative advantage could have been forgotten when advocating for hyperglobalization (Rodrik 166). Rodrik discusses areas in which other economists may have read the wrong signals.
He uses the case of East Asia where markets were praised instead of government intervention (Rodrik 168). The author has used a combination of the more recent sources and old sources. Some of the sources are several decades old when the author refers to historical details. The author uses recent sources for comparison and analysis.
Major strength
The books major strength is that it draws its conclusions from the experience of other nations. It also considers nations from different regions.
Major weakness
The book fails to explicitly analyze the impact of globalization on economies that were initially advanced when the failure of these economies to benefit from globalization as expected might be the inspiration for writing the book. He mentions that if the developing countries could have been the only ones losing to globalization, they could have been told to work harder (Rodrik 172).
Conclusion
The book differs from other books for its advocacy on increased regulation in favor of local industries. Globalization was expected to create increased competition that would force nations to upgrade their methods towards efficiency. The author is right to claim that in theory people shun protectionists ideas but in practice they appear to work.
He points out that the results of globalization are unexpected which makes it necessary that it be reviewed. The book has more importance today especially after the global financial crisis. There is also a confrontation among nations about Chinas dominance by flouting the rules. The author identifies that global governance is unlikely which makes it necessary to use regulation on globalization.
The author uses multiple examples of nations in different continents. He examines their reasons for failure or success in globalization. He also draws from several economists and explains the reason for their perception. It is a book that is worth reading when a nation considers opening up to international trade. Government intervention is necessary and regulating globalization to protect local industries.
Works Cited
Andrews, Alex. Perspective on the Global Financial Crisis. Journal of Critical Globalisation Studies. 5.11 (2012): 167-171. Web.
Bruff, Ian. Authoritarian Neoliberalism, the Occupy Movements, and IPE. Journal of Critical Globalisation Studies. 5.7 (2012): 114-116. Web.
Caprio, Gerard. The Evidence and Impact of Financial Globalization, Burlington: Elsevier Science, 2012. Print.
Cobbett, Elizabeth, and Randall Germain. Occupy Wall Street and IPE: Insights and Implications. Journal of Critical Globalisation Studies. 5.6 (2012): 110-113. Web.
Dani Rodrik: Bio and C.V. 2013. Web.
Ekins, Paul, and Tancede Voituriez. Trade, Globalization and Sustainability Impact Assessment: A Critical Look at Methods and Outcomes, Abingdon: Routledge, 2012. Print.
Lee, Eddy, and Marco Vivarelli. The Social Impact of Globalization in the Developing Countries. IZA Discussion Paper. 1925 (2006): 1-26. Web.
Markovic, Mirjana. Impact of Globalization on Organizational Culture, Behavior and Gender Roles, Charlotte: Information Age Publications, 2012. Print.
Rodrik, Dani. The Globalization Paradox, New York: Norton & Company, 2011. Print.
Sindzingre, Alice. Explaining Threshold Effects of Globalization on Poverty. UNU- WIDER Research Paper. 2005/53 (2005): 1-29. Web.
Capitalism began back in seventeenth century in Europe, whereby, it involved making of profit via production of goods and services. The main factor in capitalism is the capital, which is used to generate wealth, via production. Capitalism is a social system, which most countries have adopted, whereby, the means to produce and distribute goods are owned by a small group known as the capitalists; however, the rest who work in order to earn wages are the working class.
The working class group or labour always work hard to produce goods and services, which bring in profits for the capitalist, hence giving rise to the critic that capitalists exploit the working class group in order to make more profits and continue accumulating wealth.
In capitalism, the free market determines production and distribution as much as the price of good and services. In a free market, government interference is normally minimal and the buyers and sellers are the sole determinants of prices.
According to Fulcher (pp2), he describes capitalism as the investment of money with an expectation of profit, which could be huge depending on the risk taken. However, according to an article by Anderson (pp10), in free market capitalism, initial wealth is created, which then spreads; it then leads to the social and political change due to the increase of power in the society.
According to Rothenberg (176), globalization is the acceleration and intensification of interaction and integration among people, companies, and governments of different nations. Nevertheless, globalization involves a global market in which sales and purchases of goods and services are not restricted. Globalization contributes to the creation of wealth, job opportunities, as well as improving the quality and variety of goods and services globally.
However, globalization has been criticized for allowing investments in the developing countries where the cost of production is much lower as compared to the industrialized countries. Due to the cheap labor and low cost of raw materials in the developing countries, globalization seems to exploits this advantage.
However, the main aim of globalization should be creation of jobs and boosting of the economy for the developing countries. The main aim of business establishments is to make profits, but some organizations go to the extent of being unethical just to make profits. For instance, some industrial companies dispose their waste products in rivers and lakes, since they do not want to spend money of proper disposal.
The effects of such actions are hazardous to the human being and their surrounding environment, since it could lead to diseases that are sometimes fatal. According to an article by Anderson (pp10), globalization is seen as a factor that encourages social and political development in a society. Indeed, globalization expands the economic relations through the movement of capital and labor.
Effects of capitalism and globalization
Capitalism motive is to produce goods and service for profit purpose, hence satisfying customers need is not their priority. The capitalists base production on the profits that can be made through sales, while the profit motive of capitalists is prioritized because it is only through profit making that they will be able to be regarded as capitalists. Nevertheless, competition exists among capitalists, thus forcing each of them to work hard in order to keep up with the current production methods.
State directed capitalism occurs when government gets involved with capital movements, for instance, in china. According to Baumol (pp 60), capitalism can be categorized into state guide capitalism whereby, the government of a particular country guides the market via giving support to specific companies that are expected to prosper. An example is in South Korea, whereby the government favors certain companies via exclusive licenses, government contracts or through tax breaks.
They are also protected from competition from foreign companies. The favored companies are regarded as champions and they receive full support from the government, since their success is guaranteed.
However, the state-guides capitalism can be faced with pit-falls, for instance, in the case of South Korea in the 1990s, when the government persuaded banks to loan the southern Korean conglomerates due to the expansion of steel and chemical industries. Hence, the banks invested heavily on these industries such that when the financial crisis hit, the countrys economy almost collapsed (Baumol, et al, pp 67).
Secondly, there is the oligarchic capitalism in which power and wealth is under a small group of people. This type of capitalism is mainly common in Latin America; however, incomes are normally distributed unequally, and the families that own the economies do not encourage competition from the new entrants. Governments make it difficult for any new business that will prove to be a competitor to operate.
The oligarchic capitalism is associated with corruption, such that, the governments makes it hard for citizens to obtain licenses for business. For instance, in Saudi Arabia, where one family runs and owns the oil, it is able to control the oil business and establish many businesses; the government issues this family with oil revenues, thus providing support to other businesses. The main characteristic arising from this capitalism is income inequality, corruption, and informal activities (Baumol, et al pp 76).
Thirdly, there is the big firm capitalism, whereby, profitable economic activities are carried out by giant firms only. Fourthly, there is the entrepreneurial capitalism in which an important role can be performed by a small firm. In a market with few competitors, the firms are at an advantage to set their own prices. However, an economy cannot survive on entrepreneurs who only focus on one item alone, which is why there is need for big firms in a country.
Capitalism is one of the successful system in wealth creation; technology progress, the ultimate driving force of capitalism, requires the continuous discarding of obsolete factories, economic sectors, and human skills (Gilpin Para. 1). However, capitalism is criticized for rewarding the adaptable and efficient businesses; however, it punishes those that are less productive. According to Gilpin, the process of creative destruction creates many winners and the same applies to the losers.
He further explains that, though capitalism is known to distribute wealth more equally, compared to other economic systems, still it rewards the most efficient and productive. However, it has a tendency of concentrating on power, wealth, and economic activities, such that those that are threatened by the power of capitalism tend to try to overthrow or change the system, since it poses as a threat to them (Para. 2).
Gilpin adds that, since the beginning of the 21st century, the global economy seems threatened since the European movement and the North American free trade agreement (NAFTA), represent important shift away from an open economy and the political foundation of international economy have been undermined. The presences of forces of economic globalization trade, financial flow, and the corporations activities have contributed to the interdependence of the international economy.
Moreover, among the developed countries, deregulation, privatilization, and other reforms have reduced the role of the state in the economy and led many to proclaim the triumph of international capitalism and economic ideas on which it rests (Gilpin Para. 26 ). In fact, capitalism is based on winner takes all; therefore, it strengthens competition in a market since everyone wants to emerge as the best.
Nevertheless, capitalism has had effects on both the economy and the society; this is evident in families who only focus on their success and prosperity, hence ignoring the emotional needs of their children. Such parents are hardly at home, and are always working hard to achieve a competitive advantage at all times. Due to the fact that their children are not well grooming to assists them to be better and responsible adults, they seek comfort in the gang groups as they provide them with emotional support.
They end up engaging in drugs, alcohol, and violence, which could lead them to prison. Capitalism has also contributed to divorce in the society, whereby, one spouse is hardly at home but is always concentrating on making more and more money, and as a result, the other partner may feel neglected and decide to find emotional support elsewhere. In turn, this has led to the destruction of family structure in the society.
Globalization is associated with policies such as deregulation, whereby, the trade restrictions are limited and the government involvement in trade is less, hence business is able to flow efficiently and earn more profits. Moreover, accessibility of goods at lower price is possible, making them affordable to the customers. However, regardless the advantage of low priced goods, unequal distribution of wealth emerges from the factor that contributes to the exploitation of natural resources.
Despite the fact that globalization assists in the spread of wealth, the fact is that it does not distribute wealth equally; instead, it contributes to the wealth of the wealthy in the society. Globalization has also contributed to the growth in technology, which has enhanced effective communication globally, thus making trade and interaction easier. In addition, globalization has yielded to stiff competition among nations and organizations, as they aim to acquire more.
The emergence of the internet has truly made peoples lives easier since e-commerce has made the selling and purchasing of goods easier. The internet is also affordable and easier to communicate to people fast despite the distance. With the advancing technology, globalization has continued to increase thus opening more doors to trade between different organizations of different countries and yielding to globalization organizational integration.
Hence, it is contributing to foreign currencies, which boost and enrich the economies of the trading countries. However, the main disadvantage of globalization is that the wealthy nations become richer while the poor nations remain poorer, since entrepreneur wish to invest in countries whose economies are stable, where huge profits are a guaranteed hence benefiting such countries.
Most investors target countries that have cheap labor and availability of raw material. Although by establishing industries in these countries leads to employment opportunities and boosts the economy of that country, it is however associated with the disadvantage of pollution of rivers and lakes due to improper disposal of waste materials.
This in turn contributes to the fatal diseases and environmental pollution that contributes highly to global warming. Hence, the developing countries are at a disadvantage in the protection of their environment from pollution. It is however evident that poverty in the developing countries reduces as the income rises; hence, globalization has played a major role in the reduction of poverty. Nevertheless, globalization makes it easy for people to travel, due to improved infrastructure that makes business more efficient.
It also makes it possible for local goods to be exported to different countries; the interaction between two different countries usually leads to cultural diffusion. Though globalization brings about development and creates employment, it is criticized due to the fact that some of the developing nations develop at the expense of other developed countries.
According to Anderson (pp12), those developing countries that have unwillingly embraced partial economic openness tend to suffer due to the fact that the increasing wealth, only benefit a particular group of people due to corruption, hence the difference between the rich and the poor becomes more broad. These countries also face the limited trickle down effect, whereby, the rich continue to progress, while the poor suffer.
While the infrastructure advances, most of these countries show a decline in the local market while the exports are determined by the export prices. However, immigration is evident in all countries due to businesses and trade, promising jobs, which are brought about by globalization.
Anderson adds that globalization has contributed highly to change in the way of life, for instance, breast milk can be replaced with nestles condensed milk, leading to the increase in tobacco smoking, which is targeting the teenager and youths especially, hence lowering their lifespan.
Globalization has had both negative and positive impact on different countries. First, the developed countries have had to lower taxes to attract investors to their countries. The developing countries on the other hand have had to bear with low wages, child labor, and poor working conditions (Anderson, pp 13).
Even though capitalism and globalization has been taking advantage of economically declined countries for their work force for less than minimum wage, they are still turning towards them for the companys income as the economy takes a huge toll. Globalization and capitalism have been criticized for expanding at the expense of the developing countries.
For instance, globalization is praised for the opportunities that are associated with it especially for the developing countries. Mainly globalization has resulted to the foreign direct investment (FDI), in which it creates employment opportunities for the unskilled labor in developing countries and contributes to the countries economy as a result of the investments.
However, in times of recession, FDI causes increase in unemployment, since the low wage laborers face a threat of losing their jobs. On the other hand, in the developed nations, recession makes the country to face an increase in income inequality.
Moreover, under capitalism, only a small group controls money and resources thus accumulating more and more wealth by keeping their profits high but wages are kept low. In capitalism, it is clear that profit comes above anything else, even the society. With this in mind, the societies compete against each other for the low wages and long hours to make ends meet, as the shareholders make most out of the laborers (Guang-jie pp 2).
As demand for profit increase from the capitalists, it leads to the exploitation of workers who are forced to work for ling hours with little pay. Needless say, the continuous production of good leads to an increase in pollution in the developing countries, since these countries have little control over the issue. Pollution of the rivers and lakes with waste products contributes to the rise of fatal diseases like cholera, which eventually lead to death if not treated at an early stage.
When the atmosphere is polluted as a result of greenhouse gases, like carbon dioxide, the effects are global warming, which interferes with the climatic conditions of a country, and could eventually lead to heavy rainfalls that lead to floods or long periods of drought that are evident in most parts of Africa.
Globalization has contributed to quality living standards of many people globally; however, it has also led to poverty for many more. This applies where the rising businesses in the developing countries face the challenge of competition from the wealthier nations.
Since they are unable to compete with the foreign multi-national firms, they result to doing business locally, hence, they never advancing at all. Due to advancing technology, production becomes rather expensive but not all countries can be able to accommodate the high price of technology, with the developed countries being at an advantage (Anderon 10).
Most wealthy companies are successful because they can easily access technology; hence, their profits continue to increase. Since investors invest in countries where labor is cheap, they are able to make more profits at the cost of employees hard work.
Income inequality is caused mainly by the advanced technology that has reduced the number of low-skilled jobs, thus increasing incomes of the skilled personnel. Globalization can be blamed on the issue of income inequality; however, we cannot deny that this challenge is overweighed by the many advantages of globalization.
According to Rivlin (Para. 18), the gap between top and bottom widens because income at the top moves up as the incomes at the bottom continue to decrease. In 1990, there were low unemployment rates, meaning that people were beginning to get better paying jobs, since the demand for skilled personnel were rising the graduates were indeed benefiting.
He however argues that low employment rates and low inflation can only be achieved if the productivity if growing fast enough. Free market capitalist work well when policies are right and when technology is contributing to the growth in productivity and still labor is scarce. It is in such conditions that when competitiveness is effective since capital moves quickly into new ventures.
According to Barber (Para. 12), commerce, banking, and business usually depend on information flow and are facilitated by the communication technologies especially through computers, satellites, and fiber optic among others this contributes to globalization.
In addition, globalization affects the ecology in many ways, such as, the pollution caused by green house gases that affect our planet, how gas- guzzlers fueled by leaded gas destroy the German forests. However, trading of between the developed countries and the developing countries give hope to the developing countries that they can catch up technologically, this hope is normally as a result of the direct foreign investment.
When the multinational companies settle in the developing countries, they impose policies concerning the investment they are providing, hence giving them an upper hand in the developing countries. The fact is that these foreign companiess aim is not to boost the host countrys economy; instead, their priority is the cheap labor, low cost of raw materials and the convenient taxes.
The developing countries on the other hand, tend to abide by the policies implemented by the developing countries in fear of them withdrawing their investment. The irony is that, the profits of these multinational companies are repatriated home and not invested in the host country.
According to Harris (pp 6) in china, Russia and the Arab gulf, the state owned corporations present play a huge part in influencing the global economy. Growth of such countries is dependent on the state corporations and the government. With global capitalism in the developing countries, it has yielded to statist globalization and the emerge of transitional capitalist who act as independent players.
Harris explains that the transitional capitalist class power was evident in 2007 during the economic problems. Whereby as the United States experienced economic crisis, Russia, china and India were growing economically. According to Harris, the flood of foreign investment produces an excess of cash in developing nations, while at the same time creating denationalized portfolios for the transnational capitalist class (Harris pp7).
Therefore the developing countries are able to grow economically through foreign investment, nevertheless in china for instance the state owned transnationals control about 60% of the foreign investments and the same case applies to India. However Harris (pp 10) explains that most developing countries have oil and gas resources thus representing an economic and political power. An example is the Middle East which attains most of its money from oil.
In return there is flood on investment banks, venture capitalist and private funds; an example lies in the United Arab Emirates, which has over $20billion worth of investments. The Chinese government took a huge step in protecting their economy from foreign investment hence supporting it main sources of income, for instance the shanghai stock market is a no go zone for foreign investors, hence leaving china at a competitive advantage.
According to Gill (pp 277), when globalized markets fail, they cause great disaster since they can fail more deeply, nevertheless he blames the fall of a market on the state for allowing such disaster to occur. He adds that the factors that lead to cries include; over-extraction, over-concentration, under- consumption and underinvestment. At this point transformation is important, since the system can not be sustained by the current social, political and economic situations, thus avoiding further crisis.
Though capitalism offers job opportunities to the developing nations, it is criticized for the exploitation of these workers, which falls under the globalization of capitalism. According to Guang-jie (pp2), the neo-classical distribution theory identifies price as a factor that influences wage. The nature of price of a product produced in the developing countries determines the income of the laborers, but the price of these products is often under-valued, Therefore a clear indication of an unfair market.
Conclusion
Globalization benefits the wealthy nations and companies while the companies in the poor countries collapse as they lack the resources and capabilities to compete with the wealthy nations. This has led to the blocking of investments and growth in most developing countries. Capitalism only takes place in performing nations rather than the deteriorating economies; this is because it is mainly concerned with maximizing profits only. Nevertheless, we cannot deny that capitalist and globalization have some advantages.
Capitalism, for instance, contributes to a rather positive political and reforms in the developing countries. This in turn, leads to the citizens of the host country recognizing their rights, civil liberties and provide a better standard of living.
Most economies become stronger after adapting capitalism. Moreover, with the stiff competition, the capitalists are able to produce the best to make more sales. With the changing technology, and increase in speed, capitalism seems to fit in this setting of globalized system. However, the main problem lies with the low wages offered to the laborers.
Works Cited
Gills, Barry. Globalization, Crisis and Transformation: World Systemic Crisis and the Historical Dialectics of Capital. Globalizations, Vol. 7, Nos. 12, 2010, pp. 275288. Web.
Harris Jerry. Statist Globalization in China, Russia and the Gulf States; Science & Society, Vol. 73, No. 1, 2009. Web.
Anderon, Ron. Evaluating the Effects of Globalisation. Ethos, Vol. 18, No. 2, 2010, pp 8-13.
In contemporary times, the phenomenon of globalization has had great impacts on the world economy, global trade, currency, and communication. In Jeremy Benthams Panopticon, Jeremy made visibility a kind of trap. Visibility among prisoners made them control their behaviors as they were constantly being watched. In this case, visibility was a mechanism of endearing the public to the authorities, homogenizing societal behaviors, and limiting peoples autonomy (Bentham 32).
In contrast, Postmans Amusing Ourselves to Death, the public was oppressed by their addiction to media, particularly television entertainment. Based on these readings, this paper makes three main arguments; first, that Panopticon control exists in contemporary society as well, especially with regard to our online culture; second, online surveillance and data mining by law enforcement make the public conform, as complete anonymity is not possible; and third, television commercials have implications on public life and modern politics.
The Panopticon Writings
Benthams panopticon was a structure with a central tower where the warders could see each prisoner. It represented an inclination of society towards normalizing behavior and discouraging dissent. In contemporary terms, it is a symbol of disciplinary power, a form of control. The panopticon building provides a surveillance environment where inmates or people are conscious of their behavior (Bentham 54). According to Bentham, the authority should be visible and felt by all prisoners. The panopticon perfected the operations of power as it reduced the number of staff/warders operating it as well as the number of prisoners under control.
In different aspects, the theoretical basis of panopticon lies in how punishment and control work in contemporary society. Modern society, as sophisticated as it is, offers many opportunities for control that compel subjects to conform to the norm. While this is largely true in most prisons, the deployment of panoptic systems such as surveillance by closed-circuit television cameras in cities is indeed an extension of the dominating power of law enforcement authorities.
Similarly, panoptic observation has been extended to online users. People feel that their online activities are being monitored. Even in institutions, ISPs record the users activities through an account tied to a specific computer. Moreover, organizations use cookies to compile the users profiles, and data mine their buying practices. Law enforcement also monitors online users in the pretext of preventing criminal activities or terrorism.
Through the Internet Protocol addresses, online activities can be traced to a particular identity. Thus, with this form of surveillance, the public has to conform, which is to engage in simple and acceptable activities when online so as not to stand out. Individuals have to monitor their own behavior and autonomy to ensure that they coincide with societal expectations. This has the effect of controlling than freeing people as it forces them to control their behavior, as well as those of others. Dissents or those who act differently are treated with suspicion. This enhances conformity at the expense of diversity. Moreover, contemporary society, through techniques such as identification documents and passports, pushes the public towards a panopticon-like state, where visibility enhances conformity (Barton 163).
Amusing Ourselves to Death
The main cause of problems that contemporary society is facing emanates from the medium through which these problems are presented to the public. The digital age has not only resulted in the proliferation of information sources but has created a new discourse where even serious issues are packaged as entertainment products. This has resulted in an age dominated by show business at the expense of intellectual and spiritual growth.
Neil Postman compares utopian and contemporary societies. He argues that public addiction to television entertainment has become a means through which people voluntarily sacrifice their individual rights (Postman 78). The central argument extended in this book is that form excludes content (Postman 26). In other words, television news is a form of a packaged commodity for the target audience. Thus, information on religion or politics is diluted to suit or entertain the target audience. Television sacrifices the quality of the information in a bid to satisfy the far-reaching entertainment needs of the audience (Postman 89).
Television news presentation often is accompanied by theme music and commercials, which erode the conditions for rational criticism and intellectual involvement. As societal issues have remained constant with time, cultural aspect has evolved and changed typography, thus appealing to rationality and passion of the television medium.
Presentation of programs such as educational, religious and the news is central to Postman. Television has incorporated entertainment in all programs including programs that, previously, represented serious issues of our culture (Postman 72). This has caused serious implications on public life in America, both spiritually and intellectually. Of particular importance is the impact of television on modern politics, which are closely linked to what people see on television commercials.
According to Postman, television commercials are representations of the many aspects of political discourse in America (91). Indeed, in the capitalist economy, competing business interests among manufacturers has undermined the very spirit of capitalism and to some extent, the democratic process. Modern politicians are like celebrities, who crave media attention and have little, if any, interests or plans to improve the lives of the populace.
Works Cited
Barton, Ben. Modes of Power in Technical and Professional Visuals. Journal of Business and Technical Communication 7.1 (1993): 138-162. Print.
Bentham, Jeremy. The Panopticon Writings. New York: Verso Publisher, 1995. Print.
Postman, Neil. Amusing Ourselves to Death: Discourse in the Age of Show Business. New York: Penguin Group, 1985, 26-97. Print.
The term globalization has become recently popular in the modern world describing a wide range of economic, social and political trends. Globalization can be described as the integration of societies, economies and cultures through a worldwide network developed from communication, trade and transportation.
Although there are many description of the term, it has generally been accepted that globalization is a term that best describes the contemporary world that exists now. Globalization has extensive implications for almost every aspect of human life.
This has sparked numerous debates about the impacts of globalization and whether it has caused more harm than good. Considering the various developments in the recent world, it is evident that globalization offers more advantages than disadvantages economically or otherwise.
Globalization is mainly used to describe the integration of worldwide economies through foreign investments, trade and technological exchange. Globalization has led to the development of a global market whose foundation is the freedom of exchange.
Countries that were once cut off from the world can now access goods and services easily from foreign countries. Companies are also able to reduce their cost of production by locating their companies in countries with cheap labor cost. This has led to cheaper goods that can be accessed by different people from all over the world.
Globalization has also enabled the transfer of skills. Third world countries and developing countries can learn from multinational companies and in the process develop their own economies from the acquired knowledge. Critics of globalization argue that globalization has led to loss of jobs through outsourcing. Critics also argue that globalization has led to the spread of sweatshops and exploitation of workers from third world countries.
While these claims may be true, it should be noted that cases of unemployment are very high in third world countries and through globalization these workers may get a chance to get a livelihood. Companies mainly invest in these countries for cheap labor, and the moral dilemma that arises due to unfair wages is unfounded as without these foreign companies, the workers are stuck in poverty without a way out.
Globalization has also led to integration of military power and political alliances. This has led to the development of a common international legal framework that seeks to protect human rights and promote peace throughout the world. Through globalization, crime importation has become possible and cooperation of law agencies all over the world has enabled the improvement of international crime fighting efforts.
Globalization also led to the formation of the international criminal court that has enabled political and human rights criminals to be tried fairly and justly, which would otherwise be impossible in their home countries.
Globalization has also led to military cooperation aimed at fighting impunity, promoting democracy and elimination of terrorism threats. This is one of the major advantages of globalization as countries that were once oppressed and in turmoil can now receive help from the international community. However, critics of globalization argue that it has led to the erosion of national borders and infringement of national sovereignty.
They have argued that national politics and issues that are only of national concern have been infringed upon by the international community with some countries trying to control how another country is governed or how it carries out its activities, a situation that has been dubbed neocolonialism. However, the formation of global administrative laws and other international relations law has ensured that the individual sovereignty of a country is preserved regardless of the situation.
International cooperation has also enabled countries to receive help when in need such as the case of Haiti early this year. Cases of genocide, civil wars and oppression can now be avoided or mitigated mainly due to international cooperation brought about by globalization.
During the Rwanda genocide, the international community chose not to take action and the country was almost destroyed. It was only after the international community intervened that the situation was brought under control. It can thus be seen that politically, globalization has brought more good than harm.
Infusion of cultures has also been one of the major impacts of globalization. Multiculturalism has spread to virtually all corners of the world with people enjoying better access to foreign cultures, beliefs and traditions. Some critics argue that foreign cultures have led to the extinction of local cultures.
However, it can be argued that multiculturalism has enabled better understanding between people from different regions of the world thus promoting peace. Foreign cultures are also usually secondary to local culture and although dilution of cultures may result, people gain a better understanding of the world and are more tolerant towards each other.
Globalization has also resulted in the increase of tourism and international travel. Tourism not only improves the economy of the local population but it also helps the country to educate others about its people and its resources.
Through globalization, people now have better access to education from foreign countries. Although this may lead to brain drain, those who return to their home countries bring new ideas and skills that can be used to solve problems faced by the country and improve the overall economy of the country.
Globalization has also led to the development of the international society where people communicate and solve each others problems. Social sites such as FaceBook have enabled people from different regions of the world to befriend each other and communicate in real time.
Globalization is a term that is used to describe the modern world. Almost every aspect of human life is in one way or another affected by globalization. Various debates have been help about the actual and potential impacts of globalization. Although it has several disadvantages, globalization has brought many advantages.
Economically, the development of the free market has been by far the most important advantage brought about by globalization. The spread of multiculturalism and better international governance have also been brought about by globalization.
Kofi Annan once said that opposing globalization is like opposing the laws of science. One of the reasons why globalization has become so influential is that it offers infinite opportunities to all. In the past, the issue of globalization was shrouded in controversy mainly due to poor regulation measures and poor understanding of the concept. However, through education and better international globalization, it has become evident that globalization is a positive force in the world.
Globalization is a contemporary concept that entails the integration of global economic, political, and social aspects of many societies. In particular, in recent times, more efforts are being made towards the integration of the world economy. As the integration of the global economy increases, the national governments are gradually losing their influence, and in the process they are becoming less relevant.
In its wake, globalization has opened up global markets in many countries controlled by a single global entity. As a result, national governments no longer have much influence on the implementation of social programs, the management of macroeconomic outcomes, and regulation of the industrial economy.
Evidently, the new global concept has led to increased cross border labor mobility, increased flows of goods and services, increased technology transfer as well as improvements in finance and investment. The improvement in cross border movement of capital has led to the emergence of a global market with common prices for goods and services regardless of the nation-state regulation.
This implies that the power of nation-state, which previously controlled all business activities, is diminishing. In addition, globalization has affected national institutional arrangements, changes in industrial policies and welfare systems of many countries.
In other words, globalization will ultimately lead to a worldwide convergence of all national economic systems resulting to free market capitalism (Cable 1995, p. 23). Previously, capitalism and democratic development were common principles common upheld by most national governments. However, in the wake of globalization, capitalism is increasingly diminishing as markets are become liberalized. Globalization just like medieval transnational system limits the state power of countries.
Globalization and the Global Networks
In general, globalization refers to the global social interaction at different levels. As Mann points out, social interaction in the new world order can occur at five different levels: global, transnational, international, national and local (Mann 1997, p. 472). Both national and local networks involve socioeconomic relationships at national and local level respectively i.e. within a nation-state such as local support groups.
International networks, on the other hand, involve relations established between nations. Transnational and global networks involve networks constituted between many nations or incorporating many nation-state networks. Typical examples of such networks include formal institutions that regulate the world military and economic affairs.
These include institutions such NATO, WTO, UN and the EU to which many nations are signatories. To some extent, local, national and inter-national interaction networks act to override the nation-state. However, the geographic boundaries still remain relevant under these modes of interaction.
In contrast, transnational and global networks have the ability to operate with less regard to national boundaries. Conversely, the transnational and global networks are never affected by nation-state laws or policies. Transnational networks include the cultural and religious movements that may be large enough to cover an entire continent in scope or cover a particular region comprising of two or more countries. Thus, transnational networks, though commonly though to be worldwide, may not be global but rather regional.
Global networks, on the other hand, operate more or less on a global scale. Usually, the networks involve aspects such as socialism, capitalism, feminism or environmental issues. Institutions such as the IMF, Amnesty international, the Red Cross and the UN, are global in scope (Cable 1995, p. 41).
Of most significance, however, are the networks that dominate capitalism. Capitalist networks regulate the trade relations more or less globally. Networks that dominate capitalism have been on the rise since the collapse of the Soviet Communism. The extensive occurrence of capitalist networks implies the likelihood of a unified global system. Currently, capitalism remains central to most countries local and national networks (Berger, & Dore 1997, p.79).
In light of the increasing influence of capitalist networks at a global scale, a world economic order seems feasible. Currently, the global networks especially capitalist networks have much influence on international and national structures compared to the local networks. In contrast, in medieval times, the international, transnational and local networks bore much influence than national networks. Thus, it suffices to conclude that, even in the wake of globalization, the international and transnational networks remain unchanged.
However, as the nation-state evolved over several years, the transnational capitalist structures became embedded in national networks and national institutions. Thus, fundamentally, the current national networks constitute both the transnational and national economies (Poogi 1990, p. 165). Apparently, the nation-state has limited influence on the networks of interaction, which was the same case in medieval times.
Globalization and Global Economic Integration
In most cases, globalization means the extensive integration of multiple economies to the point where the significance of national or international networks declines allowing the emergence of national and global networks. Thus, the concept of a global economy implies the improvement of international ties to an extent that a new global network is established.
In assessing the extent of global economic integration, whether in finance, trade or investment, the amount of international flows is vital. The growth of global economic networks depends on international and national networks as much as it does on the medieval transnational networks (Mann 1997, p. 474).
Two issues arise with regard to the impacts of globalization upon national or international networks relative to the medieval transnational networks. The first issue is whether the global and transnational networks increasingly growing in importance compared to national and international networks.
Given the unprecedented growth in global markets especially involving financial markets, the contribution of national and international networks to this growth is minimal relative to the transnational ones. This implies that the world economy resulting from globalization is indeed transnational in nature displacing the national and international networks.
The state, in this case, facilitates this role just like in medieval times. In other words, the idea global economic integration continues to expand independent of national and international networks but is highly dependent on transnational networks.
Obviously, due to globalization, economic exchange occurs freely across national boundaries. In this sense, the territorial boundaries no longer hold any significance in most economic transactions.
However, it is necessary to note the difference between globalization and internationalization, which lays emphasis on the nation-state. It is clear that globalization does not recognize the nation-state as a significant power or economic actor just like in medieval times. Moreover, globalization can involve national or state-owned institutions but independent of national networks.
Globalization and Transnational Networks
The medieval transnational networks and the globalization bear one thing in common; political and economic liberalization. In contrast, the evolution of the modern state involved a form of confinement of social networks of interaction that were previously local or transnational in scope.
As a result, the social networks became coordinated solely at the national level. As Mann notes, the nation state led to the confinement of the social networks, (Mann 1997, p. 481). Thus, nation-state became the coordinating and a regulating authority of social relations whether at local or international level. Mann further argues that the modern state power promotes the society-state relations in a way that politicizes the social networks more than the medieval states did (Mann 1997, p. 491).
The central issue today, however, is whether the relations between the state and the society occasioned by the modern state are disappearing giving way to global networks. This can be viewed in multiple perspectives: economic, military, social and environmental, all of which threaten to displace the powers vested in nation-state (Cable 1995, p. 51). However, in contrast to medieval transnational networks, the new forms of transnational networks are not entirely incorporated in the nation-state systems.
Two contrasting views arise with regard to the fate of the nation-state powers in the wake of globalization. First, the new forms of transnational networks are likely to cause a radical power shift resulting to global governance. The second school of thought holds the view that the new forms of transnational networks would ultimately result to a world government that regulates all the nation-state.
This implies the establishment of formal international institutions that interlink nation-states as well as social institutions primarily through communication technology. The result is global governance followed by diminishing powers and influence of nation states (Slaughter 1997, p. 184)
Another perspective to the fate of nation-states draws the conclusion that the increase in power of international institutions is not entirely at the expense of nation-states (Slaughter 1997, p. 192).
In stead, the current international bodies involved in emerging international issues such as terrorism, environmental degradation and drug trafficking, have led to the establishment of a trans-governmental system thus preserving the integrity of nation-states (Cable1995, p. 38).
National governments form distinct regulatory agencies such as law enforcement. Such agencies cooperate with other agencies abroad thus resulting to trans-governmental networks much like the medieval transnational networks. The new transnational system is attributed to the increased global economic cooperation and global competition.
With regard to the growth of global networks and the disintegration of state power or national economies, there are strong disagreements. Stallings contends that capitalist structures are gradually becoming transnational and in the process displacing the economic and political power networks of nation-states (Stallings 1995, p. 127).
Indeed, the large volume of cross-boundary capital, labor and goods flows attest to this assertion. On the other hand, Rhodes argues that, globalization causes uniform changes in social and social economic policies rendering the regulatory powers of the nation-states irrelevant.
Economically, most governments have adopted changes in trade, finance and investment that herald the emergence of a new global capitalist order. Consequently, the nation-states are increasingly becoming powerless as transnational markets and multinational corporations influence most of the policy choices.
Globalization and Politics
There are several variants of global-society theories that attempt to explain the concept of globalization and international cooperation. In recent times, much attention has been directed to world peace and regional conflicts. According to the global-society perspective, the increased concerns for environment, global peace and modernization are misdirected (Poogi 1990, p. 168).
The theory suggests that the rise of institutions that aim to promote international cooperation is one way of jointly mitigating or eliminating international problems. However, the theory suggests that this has led to increased interdependence between nation-sates as even powerful states fail to unilaterally tackle various issues such as terrorism, communicable diseases and environmental issues.
The effects resulting from non-state organizations, which operate across national boundaries, are profound. The states are increasingly becoming less influential in most international social and economic issues. Powerful organizations such as Organization of Petroleum Exporting Countries have more influence on the global front than individual states. Additionally, joint actions by financial institutions can have a profound effect on the world economy.
From a realist perspective, a contemporary international system is necessary in international relations. According to this theory, the lack of a central authority, that is central to the international system to settle international disputes especially with regard to national security, make nation-states insecure (Berger, & Dore 1997, p.81).
Thus, realists view international conflicts as integral to the international system. Additionally, realists view the regional groups as influential actors in the international system. In medieval times, empires or ancient civilizations were the primary entities in the international system. However, the establishment of sovereign states led to the concept of national interests (Berger, & Dore 1997, p.82). Globalization, on the other hand, has led to the dissolution of the nation-state concept much like during the medieval times.
Conclusion
Globalization has contributed to the shrinkage of distance due to improvements in information technology and advancement in transport technology. However, globalization has also led to the expansion of many international institutions that operate regardless of the national boundaries. In particular, globalization has led to the creation of a world market and a form of global governance.
From a historical perspective, social networks of interactions have been transnational (Mann 1997, p. 494) involving multiple societies from different places. Similarly, globalization has led to expansion of financial markets, investments and democratic structures as well as formal institutions that operate national boundaries at the expense of nation-state powers. In light of this, I would agree that the more things change the more they stay the same.
References
Berger, S., & Dore, R., 1997. National Diversity and Global Capitalism. Ithaca, NY: Cornell University Press.
Cable, V., 1995. Diminished Nation State: A Study in the Loss of Economic Power. Daedalus, 124 (2), pp. 23-53.
Mann, M., 1997. Has Globalization Ended the Rise and Rise of the Nation-State? Review of International Political Economy, 4 (3), pp. 472-496.
Poogi, G., 1990. The State: Its Nature, Development and Prospects. Stanford: Stanford University Press.
Slaughter, A., 1997. The Real New World Order. Foreign Affairs, 76 (5), pp. 183-197.
Stallings, B., 1995. Global Change, Regional Response. Cambridge: Cambridge University Press.
Globalisation has become the most overused and under the specified term in the international scene since the end of the Cold War. From the first public speech of President Bush in early 1990 for the coming of a new world order, it has come a long way to become the central issue on economic and political affairs (Held & McGrew, p. 1).
In international relations globalization has been the focus of many meetings of diplomats and heads of state. Most of the issues raised in these meetings concern the topic of globalization. Such issues can be international security and peace and trade liberalization among nations. All of these issues require the nation-state to deliver some of its sovereignty and powers to a larger organization being that the United Nations, the World Trade Organization, NATO Alliance, etc. This is because globalization has seen to be the coming together of different societies in a sort of joitventure, thus forming one global society, the global village. In this global village, the diversities are not meant to be loosened but the integration to the creation of a common set of norms and values is desired and even encouraged (Armstrong, p. 547).
The nation-state has been considered, according to the Westfalian system, the only organization to have sovereign authority within its well-defined boundaries. Also, on the international scene, it is the state that has the right to represent its nation, society, in talks or events with other societies or nations. Only it has the right to engage in talks and negotiations regarding any issue that affects the society living within the borders of that state. Also, on the economic level, it is only the state that (in the capitalist system) defines the rules and laws to be applied in the market.
But globalization has been gradually changing all of this. Now the state is not sovereign in every aspect relating to its society or territory. By engaging and becoming a member of different organizations, the state agrees to give up some of its sovereignty. It has now to abide by the decisions of the organziation it is part of even though it might not agree totally on certain regulations or rules. Many examples could be set here. In international peace and security issues, we can mention the role of international organizations like NATO. When you become a member of the organization then you automatically give to other members privileges regarding the use of your land, air and naval territories.
The case of the peace maintaining operations in Afghanistan is another example of how different states collaborate in that mission. Even though some members of the organization did not agree fully on the issue they had to abide by the decision made within the organization to intervene n Afghanistan and these states give their help, in different forms, to achieve the organizations objectives.
In the economic field when a nation-state decides to become a member of the World Trade Organization then it has to abide by the rules of the organization and liberalize its market to foreign companies. Thus the state is no longer the ultimate authority that decides the rules of its market but it is the organization that sets (not all) the rules for the individual markets of its members. But many authors disagree with the above-mentioned arguments. They say that even in this international organizations formed as a result of globalizaton, still, the nation-state does not lose its authority and powers (Armstrong, p. 459).
It might be that there are certain nations states that prevail over others, but the role of the state remains central in international relations.
References
Held, D. and McGrew, A. Globalization/Anti-Globalization. Malden, MA: Blackwell Publishing Inc., 2004.
Armstrong, D. Law, Justice and the Idea of a World Society. International Affairs 75.3 (1999): 547 561.
Nowadays the phenomenon of globalization can be described as a dominating power behind the major business and sociological developments all around the world. From day to day global economy, politics and culture become more and more autocratic in every land. The process of globalization is very resonant in society which causes emerging numerous myths around it. In their book, Globalization: Debunking the Myths , Hebron and Stack discuss myths about globalization. The first myth describes globalization as a sort of conspiracy of big companies organized against smaller countries (Hebron and Stack 43). This myth explains that big companies are obsessed with the idea to multiply their benefits which makes them find a way to affect the situation in the world to a global extent. Comparing the information in this myth with reasoning shown in the debunking information sheet one, it appears that such a myth is partially true. However, not only big corporations are considered to be the main players in the process of globalization, but the macro governments as well. As a result, the information in this myth is not fully true to reality. The second myth about globalization suggests that this process is aimed to concentrate market power in hands of a few big companies. This is not true as in a number of locations, governments are still powerful enough to control the effects of global corporations on their market which is shown in the debunking information sheet one. The third myth describes globalization as the process progressing due to the expansion of information technologies which seems to be absolutely so especially in modern-day conditions. During the last decade, the Internet became so powerful that it occupied its dominating position in business, political, and even personal relations between people. All of that makes the world a huge village . The fourth myth says that globalization makes it possible for corporations and companies to widen out their expansion without rules. However, this does not seem to be true to reality as global companies often develop better rules for their cooperation with their customers than the governments do so for their citizens. In the debunking sheet one, a number of examples are discussed which show specific cases when corporations develop better policies and regulations for their customers than it is in the case of governments. The fifth myth claims that globalization becomes the reason why people lose their jobs (Hebron and Stack 76). In accordance with the Debunking information sheet one, this does not seem to be true as globalization rather assists in creating new jobs. In particular, when big corporations manage to enter a new market in the new country they create more open positions. However, it is believed that in the other countries with more expensive labor power, jobs are lost. Still, the balance between the open and the lost jobs has a positive tendency as more new jobs are created than canceled.
Essay 2
The process of globalization is connected to a number of important notions which need explanation. In the following paper, some of them will be discussed from the point of view by Hebron and Stack in their book Globalization: Debunking the Myths .
Micro governments are seen as the top management of big corporations. As these people have a great influence on global economic and political processes, they can be also considered to be governments.
Macro governments are the governments of the countries and unions of the countries.
According to the textbook, the future of the nation-state is seen as rather uncertain on the reason of rapid developments in global politics and economics (Hebron and Stack 189).
Globalization is connected to homogenization effects and McWorld. For example, globalization is connected to rapid social developments which change the economical and political situation in which nations of the world live. Such developments become a reason for different types of conflicts between different nations and social layers (Hebron and Stack 203).
In the Debating Globalization textbox on pages 106-109, the authors opinion that the process of globalization will continue changing the political and economical situation in the world in accordance to the interests of global companies seems to be the most reasonable for me. It is definitely so as nowadays, globalization only speeds up its great tempo changing the world from day to day, and making a shift of the real power in the world from the hands of politicians to the hands of top managers of global companies.
The concept of the race to the bottom shown in the book assumes that nations along with different social groups and formations strive to promote their interest using any available means for this (Hebron and Stack 218). To win in the fierce competition between nations, countries, or political formations, their participants may apply varied techniques including changing policies, laws, and regulations. Such actions are a part of the race to the bottom strategy.
The three dimensions crucial to the reform of current Globalization are economics, politics, and the social sphere according to Hebron and Stack (121, 223). These areas of human life are the most important nowadays, and without reforming them it is not possible to expect any changes in human society. For this reason, these dimensions are considered to be the most important during the current stage of the process of globalization.
The national sovereignty is being under siege as it is stated in the book by Hebron and Stack (220). This implicates that the global developments in the world affect all the countries in such a way that their sovereignty is threatened by the results of the process of globalization. Even nowadays, the top management of a row of global companies appears to be weightier in the political life of certain countries than their governments. The future prognosis concerning the major developments occurring as a result of the process of globalization shows that such a tendency is going to be even more significant. Thus, there exists no doubt that national sovereignty is being under siege .
Works Cited
Debunking Information Sheet 1.
Debunking Information Sheet 2.
Hebron, Lui, and John Stack. Globalization: Debunking the Myths. The United States: Prentice Hall, 2010. Print.