Globalization
Definition of “Globalization”
“Globalization,” both as a term and a reality, is not easy to define for its scope is wide-encompassing and it could be interpreted in different perspectives. However, Wikipedia (2005) offers a description of globalization in a general standpoint, which states, “Globalization (or globalisation) is a term used to describe the changes in societies and the world economy that are the result of dramatically increased international trade and cultural exchange. In specifically economic contexts, it is often understood to refer almost exclusively to the effects of trade, particularly trade liberalization or "free trade."” Such definition points out that globalization is a phenomenon catalyzed by and has implications evident on particularly economic and social dimensions. Furthermore, though the aforementioned is in general sense, it could be noticed that the description is anchored on the fundamentals of capitalism, in particular, the market-oriented economy. It is for this reason that globalization is often interchanged with capitalism, per se, and its concepts, more importantly, “free trade.”
The Elements of Globalization Specifically Economic Globalization
Economic Globalization is characterized by a four-fold borderless exchange encompassing that of economic output, that of human movement, that of capital, and that of technological transfer, as stated in (2005), “there are four aspects to economic globalization, referring to four different flows across boundaries, namely flows of goods/services, i.e. 'free trade' (or at least freer trade), flows of people (migration), of capital and of technology.”
These exchanges constitute the rationale of globalization, which yields to the positive and the negative effects of the phenomenon.
In this paper, those positive are to be highlighted in contrast to those negative to aid in determining further the importance of globalization in this present borderless society.
Paper Focus: The Positive and the Negative Effects of Globalization
Undoubtedly, referring to the present-day realities, globalization has been beneficial not only to the world economy, but to the society in general for the phenomenon is a catalyst of progress particularly in the cultural, economic, political, and scientific and technological aspects. In relation to this, (2002) observes that “globalization has contributed to the progress of the world through travel, trade, migration, spread of cultural influences, and dissemination of knowledge and understanding (including that of science and technology).” Such proves that globalization encompasses developments not only pertaining to the economic aspect, but to other dimensions as well. However, like any other phenomenon, globalization has its share of negative effects corresponding to those positive. Pertinent to this, it is unfortunate that the negative impacts of the phenomenon are highlighted and are given attention more often than those positive against the background of hegemony particularly Western domination thereby creating an atmosphere of hostility towards globalization among the peoples of the world, which should not be the case.
Given such and considering the limited sources regarding the merits of globalization, the manner of discussion in this part is that using the deductive argumentative approach, in which the positive effects of globalization are discussed in contrast to those negative.
Cultural
Culture has been a resilient recipient of globalization. As reflected in world history, the essence of globalization, that is, exchange transcending borders, has been present in different civilizations and cultures since the early times. Although the phenomenon is not termed as “globalization” during that period, such essence takes the name of historical interactions like the “barter trade,” the “galleon trade” of the Spanish Empire, even the “Industrial Revolution” in England, and the “Scientific Revolution.” These highlights in history, though limited by the cultural context, in which these developments are native, share a common characteristic with the contemporary concept of globalization, that is, exchange. Indeed, globalization has affected culture and vice-versa.
In the present, among the aspects, in which globalization has significant implications, it is that of culture that has implicit effects for such are abstract. Furthermore, the economic and the political aspects contribute in shaping such effects in the cultural dimension and vice-versa, as (1997) expounds, “Globalization has economic roots and political consequences, but it also has brought into focus the power of culture in this global environment - the power to bind and to divide in a time when the tensions between integration and separation tug at every issue that is relevant to international relations.” In this sense, globalization perpetuates the cultural dimension for the latter plays an indispensable role in enhancing and in limiting the phenomenon itself. Moreover, in relation to such merit of globalization, (1997) comments, “The homogenizing influences of globalization that are most often condemned by the new nationalists and by cultural romanticists are actually positive; globalization promotes integration and the removal not only of cultural barriers but of many of the negative dimensions of culture.” It could be deduced from this notion that globalization is significant to culture for the former is a unifying factor of the borderless society, which is an offshoot of the phenomena. This idea is often misinterpreted especially by those advocates of the cultural tenets of nationalism, patriotism, and isolationism for they equate integration to loss of identity. Such is an extreme fallacy for the integration brought about by globalization aims not to make national identities irrelevant in this modern times but to establish a new world order founded on cooperation and coexistence. Hence, such integration actually respects the cultural and identity differences for it is a factor of unity in diversity. In addition, (1997) stresses that “Globalization has economic and political impacts on international relations but its cultural impact is projected to result in the decline of cultural differences.” However, it must be emphasized that such decline does not mean an end to uniqueness in culture and identity of different peoples. It is the inflexible response to globalization that makes the phenomenon destructive of culture.
Economic
The merits of globalization in the economic dimension are evident particularly in terms of capital flow, influx of technology, job creation, trade and fiscal benefits, the significant role of the private sector, competition, poverty alleviation, and sustainable growth while the demerits, corresponding to the aforementioned merits, are apparently the dependence of developing and underdeveloped countries on foreign capital, environmental degradation brought about by technology, temporary and short-term jobs, the debt burden being experienced by developing and underdeveloped countries as a result of fiscal balancing, the static compliance on quality standards demanded on the same countries, the frequent occurrence of massive capital flight especially in fledging economies, too much privatization, unfair competition, continuing impoverished state for the destitute, and unstable economic growth.
However, to expound on the positive as against those negative, on employment opportunities and trade and fiscal developments as offshoots of the capital and technology flows, , the representative of Bhutan in the UN, comments in (1999), “investments and technology transfers benefited many developing countries by creating local employment and enhancing trade and fiscal benefits for the host countries.” Thus, it is implied that globalization, which is propelled by the market system of capitalism, is beneficial especially in labor productivity through the creation of opportunities and the utilization of labor particularly in the developing countries.
On the crucial role of the private sector in the context of globalization, , the representative of Chile in the UN, stresses in (1999), “Among globalization’s effects was its impact on the contemporary world economy, with the private sector as the main player and deregulation, privatization and trade liberalization as its main characteristics.” Such translates to a merit of globalization, that is, the private sector, through its increased participation in economic activities, contributes significantly to the national economy.
On a healthy competition both in domestic and international markets, as pointed out in (2005), “Globalization forces everyone to compete with the cheapest producers.” In this sense, globalization has a positive impact in markets for the phenomenon is a factor in multiplying alternatives for the consumers. Hence, in this case, the consumers are the winners.
On addressing the vicious cycle of poverty, , in his study titled “Globalization Cures Poverty” in (2005), raises a point, that is, “the poor that remain, though a shrinking proportion of the whole population, are more than ever aware of their relative deprivation.” Though it seems that such is a demerit of globalization, the phenomenon in relation to this context has a positive effect for it raises awareness and concern especially for the governments to respond to this poverty problem.
On globalization in relation to sustainable development, the July 2002 study by the Centre for Economic Policy Research in (2005) states that globalization “offers the opportunity for a higher rate of sustainable growth - growth that translates into longer, healthier lives and improved living standards.” Moreover, in the same study, it is expounded that “On average, economic growth is good for the poor, and trade is good for growth. Trade is also associated with lower inflation and less corruption. A significant degree of openness to trade, financial liberalization, and global financial integration are necessary conditions for sustained economic growth.” Such translates to the long-run merit of globalization for the phenomenon serves as a foundation and an agent to achieve sustainable growth.
Despite these, to reiterate, critics of globalization raise negative issues from the same aspects basing on their wrong assumptions and misconceptions. One of such is regarding income equality. They claim that globalization is a factor why the rich are becoming richer while the poor are becoming poorer as reflected by the inequality in income. Such notion is unsubstantiated for they fail to link globalization to such issue. Moreover, even if the phenomenon is not transpiring at the present, the reality, that is, income inequality, remains the same for where a country has equality in income is an ideal one. Indeed, as postulated in (2005), “The increasing integration of the world's economies does not inevitably increase the inequality of incomes.”
Political
Globalization in the political sphere particularly international politics is evident by referring to the extent of democracy as a political gauge. Democracy for such political system is compatible with the capitalist economic system. The trend, which started particularly with the collapse of Communism in the Union of Soviet Socialist Republics (USSR) or the Soviet Union and its satellite states in Eastern Europe in the late 1980s, is further modified by the birth of new democracies like East Timor (Timor-Leste) and the democratization particularly of Afghanistan and Iraq in this period plagued by terrorism. Thus, globalization, in the political dimension, is equated to democratization.
Scientific and Technological
Even though critics blame environmental degradation brought about by modernization to globalization, the scientific and technological realm has benefited a lot with the phenomenon for globalization opens avenues for diversification and innovation, which are further enriched by the voluminous exchange of information and technology transfer. These further contribute to multidimensional development.
Conclusion
Given and in contrast to the demerits of globalization, the merits of the phenomenon, in general, such as the multiplication of opportunities, the interconnectedness of the world, which is perpetuated by the spread of ideas and information, and the establishment of a prosperous global community through sustainable development, that is, modernization without environmental degradation highlight the relevance of globalization to the borderless society as evidenced in world history, which is, in the context of the phenomenon, global history, thus, the positive effects of globalization outweigh those negative.
REFERENCES
0 comments:
Post a Comment