Pros and Cons of Globalization

Pros and Cons of Globalization

Strategies to overcome the challenges

Muhammad Rashid

Globalization is a process of interaction and integration among the people, companies and governments of different nations. It is a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. In the following write-up, the author has thrown light on various aspects of globalization and the challenge this phenomenon has posed to the world.

1. Introduction

“The integration of states through increasing contact, communication and trade, as well as increased global awareness of such integration is known as

Globalization” — World Politics Trends and Transformation by Charles William Kegley.

Globalization is a multifaceted phenomenon, encompassing a variety of often interrelated actions. The world has become global village – a popular cosmopolitan perspective describing the growth of awareness that all people share a common fate because the world is becoming an integrated and interdependent whole – in which trade is also inextricably linked to two other important aspects of globalization: the globalization of production and the globalization of labour. Understanding these components of globalization, as well as their relationship with trade, is important to understanding the complex world economy.

2. Factors Leading To Globalization
3. Internationalization of trade and emergence of multinational corporations and their interest in finding new markets
4. Fast-growing population of the world and its increasing needs

iii. Development of fastest means of communication like satellites, ships, railways, airways, motorways, etc.

1. Advancement in science and technology
2. Investment of countries in research and development and exploring new horizons from nature
3. Advantages of Globalization
4. Social and cultural
5. Decrease in poverty due to increase in employment opportunities created by multinational corporations through foreign direct investment
6. Improvement in living standards of people

iii. Discouragement of the negative evils and decrease in many social issues

1. Empowerment of women and their role has changed and it is shifting from domestic to market-oriented economy and national development
2. Increase in international communication among states and nationalities which has resulted into cultural exchanges, diffusion of values, norms, infrastructure development and interfaith and intercultural harmony and tolerance
3. Removal of many psychological barriers which were a major cause of social disintegration previously

vii. Accessibility of information and cure of about all social evils and issues became easier which resulted into social development

viii. Development of culture due to increase in communication among people of different cultural groups, and exchange of their cultural values across the globe.

1. Political
2. Freedom of speech and expression due to faster means of communication. It has resulted into sharing of ideas, thoughts and democratic values among citizens of the world community which ultimately develop the international and national political systems.
3. Discouragement of the elements of autocracy, dictatorship or all forms of monarchy due to dissemination of democracy and liberal ideas

iii. Due to increased awareness among citizens on accountability of leaders to the public, more mature, competent and qualified leadership would emerge

1. Removal of misconceptions, misinformation and fake propaganda among states due to complex interdependence and global internet communication network.
2. Improvement in international communication that has resulted into diplomatic success and removal of inter- and intrastate conflicts
3. Economic
4. Due to advancement in science and technology, mechanization of economy has become possible. More technological advanced machinery is developed. Innovative products are generated. Quality and quantity of products are increased. Low cost of production leads to higher profits which ultimately leads to social and national development.
5. More business opportunities in international markets due to foreign direct investment of internationalization of trade and commerce

iii. More qualitative and customers-oriented products are generated due to increase in competition among companies and availability of options for customers.

4. Disadvantages Of Globalization
5. Social and cultural
6. Destruction of multicultural beauty of the world and propagation of unified Western cultural values at global level, particularly least developed and poor countries are affected a lot. Developing countries too need these values for development.
7. Increase in social and psychological problems because the war of survival of the fittest is going on all over the world. People forget moral, ethical and social values of humanity that resulted in religious conflicts or social war on civilizational consciousness.

iii. Liberal versus traditional local cultural conflicts are increasing

1. Due to mechanization of economy, unemployment, child labour and poverty are on the rise. The individual talent of a person is discouraged due to systematic hierarchy of production.
2. Environmental degradation, climatic change, global warming and pollution of water, air, and land, as well as noise pollution have become rampant due to deforestation for industries, transportation and electrification.
3. Political
4. Due to their high investment and finances, multinational corporations are interfering in the internal and external affairs of states and it has resulted in declining the writ of the state and undermining of the sovereignty of countries.
5. There are more chances of corruption and white collar crimes which thereupon become a daunting challenge for the government. Even the involvement of many government officials in these activities is ubiquitous in many parts of the world

iii. More propaganda campaigns emerge against a government that dares challenge the interests of these conglomerates which sometimes leads to toppling of the government.

1. Due to dominance of Western economic liberal values, the traits of nationalism, patriotism and ideology have been damaged a lot.
2. Inter- and intrastate conflicts have increased in the world, and have even become more dangerous due to easy availability of weapons. This may lead to an unending weapons race among the states. Sometimes such conflicts are ignited in order to get more benefits by selling more and more weapons to the conflicting states.
3. Economic
4. Destruction of small and medium enterprises and local business due to foreign direct investment and influence of multinational corporations
5. Dependency of economy of a state on foreign investments, brands, MNCs and their policies that mostly favour these companies, not the state mostly.

iii. Depletion of natural resources due to overproduction and overutilization

1. Terms and conditions of these companies to do business in a country strictly damage the economy of that country.

Strategies to Overcome the Threats of Globalization

1. Encourage SMEs and local businesses by:
2. Giving tax relaxations
3. Decreasing import of foreign brands

iii. Providing subsidies in the shape of electricity, gas, land, water, and other factors of production

1. Harnessing the spirit of nationalism among citizens by promoting national brands and discouraging the brand consciousness of foreign goods.
2. Facilitating local businessmen through lucrative investment opportunities and security of their investments.
3. Promote and develop service industry or tertiary sectors of economy by:
4. Making investments in research and development in every field of life which would into innovative technology.
5. Promoting and developing the tourism industry. For this, providing security to tourist resorts and tourists is inevitable.

iii. Enhancing the image of the country by developing soft power elements for development

1. Developing banking system, insurance industry, education sector and trading business in the country
2. Promote and develop your own culture, history and tradition in a highly positive manner so that foreigners get benefits too
3. Encourage participation of both the genders in economic and national development
4. Maximize free trade agreements with other states and liberalize the economy
5. Ensure that competent, honest, and visionary leadership comes to the top
6. Improve the soft image of state by
7. Engaging the talents into international forum and competitions
8. Increase cultural festivals, national and international sports events

iii. Media must play its positive role in promoting the soft image

1. Crush the elements of corruption with iron hands so that investors get confidence

Globalization: Cure or Curse?

Critics often claim that globalization is Westernization or McDonldization. It is a new form of colonization in which people are independent and represented by name only. Their social, cultural, economic and political affairs and even foreign relationships are monitored and controlled by superpowers or these multinational corporations. Similarly, a farsighted leadership that can convert these challenges into opportunities matters a lot. Asian Tiger nations are moderate and developed, not Westernized. They are advance in science and technology but didn’t become Western. Likewise, the perception of state matters a lot in perceiving globalization but the number of such nations is negligible. Globalization is a “double-edged sword.” But the bitter fact is that it benefits only those nations that are already on top level in science, technology, mechanization of industry, and are culturally and socially mature. And, also they have MNCs.

Conclusion

“We must ensure that the global market is embedded in broadly shared values and

practices that reflect global social needs, and that all the world’s people share the benefits of globalization.”

— Kofi Annan

Former Secretary-General of the United Nations