Critical Analysis of Globalization and Its Effects to Other Countries
Buy custom Critical Analysis of Globalization and Its Effects to Other Countries essay
Critical Analysis of Globalization and Its Effects to Other Countries
Globalization essentially means the practice of interacting and integrating people, corporations, and world governments through trade, investments, and information technology. Globalization is definitely the catchphrase of the present day capitalism. The character and impact of globalization has been the subject of insightful deliberations and concern in economic spheres since the mid-1990s. Those who advocate for capitalism think that with good mechanisms in place to enhance global ownership of property. Other countries especially those in the third world cadre will be able to transform their economies positively. Those who dislike globalization find it difficult to reconcile the research findings with the facts on the ground. They advance the argument that the effects of 1970s are not solely attributed to lack globalization. This however, is quite different from what most governments especially in the west believe in. some economist also seem to favor the concept of globalization would economically liberate many countries.
I have a different opinion as far as globalization is concerned. To start with, I doubt whether un regulated markets forces will ever diverge or converge revenue to the whole world. They way the market is structured in the market favors the developed countries. The west especially America stands to usurp all their gains that are likely to accrue from globalization. Under globalization, it would be hard for other countries to compete successfully with countries that have very strong corporate sector. Take the United States for example; this country has some of the well-established financial institutions in the world. Technologically, the United States is riding on top. How now is the us going to compete favorable with a poor country Zambia in Africa? What the world will witness in the end is that the developed countries will continue to dominate developing countries in all aspects.
Those who promote globalization argue that globalization has led to development in terms of information technology. They further put it that currently it is easy to communicate across the world; they say that globalization promoted information exchange. To those who support the concept of globalization, it has led to a better understanding among different cultures, improved living standards, improved peoples purchasing power and gave room for democracy over communism. This is entirely wrong in my opinion, it is the west, and it is the rich countries that gain at the expense of the poor deserving nations.
I will reckon that globalization is more less like imperialism in the sense that it encourages to outsource. Under outsourcing, globali zation firms are encouraged to relocate to places with weak environmental laws and week labor laws. This is what used to take place under imperialism. The citizen will be employed but at the end of the day, they earn peanuts. The little money they earn is not sufficient to feed them or care for the medical expenses. Look at the situation in China, the factory worker in China is in trouble. The Chinese government is in pursuit of globalization. It has encouraged many firms especially from the west to establish their businesses there at the expense of their people. The Chinese work under horrible conditions at the same time they are paid peanuts. All the profits are taken to home countries; they are not even invested in the poor countries. At the end of the process, globalization will empower richer countries and impoverish the poor. It promotes insecurity at workplaces, unskilled laborers in developed countries are not better either firms prefer to shift production to cheaper regions leaving unskilled people in developing countries with no employment.
Globalization does not spare the economies of developed countries. This concept encourages firms to relocate to places where the costs of production among other conditions are better. These means that most of the production will be done in countries that have readily available cheap labor. Developed countries lose a lot of revenues in the form of taxes. The governments will also be forced to put in more money to cater for the jobless people in terms of unemployment benefits and healthcare. Globalization will cost the developed countries in terms of job cuts for their populations and increased government spending to cushion their people on the effects of poverty.
The whole concept of globalization is not global in the sense, because under globalization. Every country needs to have an equal footing in terms of production and consumption. The same should apply in the export and imports need to be balanced. Strictly speaking, these are the processes and the benefits that are guaranteed under globalization. I think this has polarized the world. The globalization has divided and widened the gap between the poor and rich countries. Currently as it stands, there is impoverishment and prosperity. A small percentage of the world is enjoying the fruits of globalization the rest of the world feels left out. Even research points to their fact that globalization is tilting in favor of the west. The rest of the world is paying for what the west is enjoying. The juxtapose of poverty and wealth at both extremes clearly demonstrates the clear difference between those gaining and those loosing.
In terms of politics, proponents of globalization argue that globalization promotes accountability and rule of the people. This is the western thinking, the world is very diverse, and people are quite different. It may be difficult to promote one global political agenda. Globalization paves way for meddling in internal affairs. Already there have been complaints from some developing countries that Breton woods institutions like the international monetary fund and the World Bank have been meddling in the internal affairs of their country. There have been incidences where the international monetary fund wanted to decide for the financial priorities of some countries. This compromises the sovereignty of poor countries.
Under globalization, there are innovations in terms of technology and information revolutions that occur in a country depict the benefits that the concerned country is deriving from globalization. In addition, information based economy. The scale of technological advancement and information revolution that happens in a country indicates the gains of globalization accumulating to the state concerned. Furthermore, an escalating sophisticated, information-based financial system clearly demonstrates globalization and influences the business trends inside the economy. The size and characteristic of a country’s economy guards a country’s market from the risks posed by trade liberalization. This is not appropriate; globalization of resources favors the countries that are prosperous and well endowed. Poor countries will not be able to benefit from their resources. The will not have the capacity to compete with wealth nations. Developed countries have the capacity in terms of technology to mine very resource anywhere on this world more than the poor ones.
In the current state of world affair, one would easily think that globalization is the best trend that countries should ratified to realize stable economic growth. However, that is not entirely correct. A critical look at how globalization affects countries leaves no doubt that the concept is not working as expected. There should be a paradigm shift to radically alter how globalization works now to distribute the gains fairly across the world.