Critic
Rieff presents a convincing case in the arguments of globalization. The basis of his argument is the sale of several ports in the United States to a company that belongs to the government of Dubai; there are also negotiations with the Indian government over nuclear weapons and contravening the global laws that govern the production of such weapons. In this article, the author seems to hit two birds with one stone. He makes two arguments in one presentation. While selling the port to the Dubai government and attributing this to the embracement of globalization, he says that the government jeopardizes national security, especially when the country faces threats of terrorism. He also shows the manipulation that the whole concept is shrouded on. America and the European countries purported this concept to expand markets and favor their own economies. While the economic power has shifted to Asia, they are still trying to hang on by trying to gain favor from the countries through these transactions in the name of globalization (Held, 2004). This is echoed by Held, who shows the negative consequences of globalization that countries in Africa have suffered and also the prosperity that countries with conservative economic practices have experienced.
Background
As mentioned by Rieff, Globalization started after the Second World War with the embracement of the universal rule of law and international agreements of Peace. Though international trade thrived, the 1990s saw a great increase in the desire for economic integration of individual state economies through the liberalization of trade and free flow of capital. Bolstered by the policies that were advocated by international organizations such as the IMF and the UN, as mentioned by Held, countries dropped the restrictions for trade and called for increased trade. The developing world was lured in using debt restructuring that promised prosperity and development on paper. Of course, none of them came to pass, and even some derived negative consequence. Rieff exposes the deceit as a strategy that only expanded markets for exporter (developed world). Indeed, we have seen the effects of globalization. In 2008, the Unites States economy came under intense pressure after the collapse of real estate and mortgage-backed securities went tumbling down. The effects were devastating. Countries in Europe felt the pressure with Ireland experiencing bank runs.
Source of the Controversy
Globalization is facing controversy due to the ineffectiveness of the policies that came with it. The practices of geopolitical and occurrences such as 9/11 have also brought into the limelight the decisions that affected globalization. Held describes the findings of IMF economists who find no significant benefits from globalization. Indeed, the developing world with sensitive economies is likely to be negatively affected due to volatile markets. Again, international law has grown weaker with the war against Iraq is an example of the bending of such laws.
Key Actors and Their Response
As depicted by the authors, the key actors in this game are the countries that rule the world in the UN Security Council and have a say in economic matters. These are America and European countries. They solicited for globalization for their benefits. As illustrated by Rieff, government officials have no concern that India has contravened international law on nuclear weaponry.
The portrayal of the International System
From this, we clearly see the weakening and massive manipulation of global laws and developing nations to react to the yank of strings of the big fish out there. Held shows this through the decision of America to invade Iraq. Globalization has been manipulated for the benefit of the countries that only desire their own economic prosperity (Rieff, 2006).
Limits of Globalization
As illustrated in the article by Held globalization, it is likely to face challenges due to political challenges and borders. Only the aforementioned (America and European) nations account for the majority of the good blocking out the rest of the world.
Regionalism, Community & Citizenship
These are unavoidable when globalization comes to the limelight. The formation of trading blocks in various regions in the world is a stumbling block as some countries are favored in trade despite globalization aiming for the whole world. Citizenship also brings up restrictions due to regulations in various countries concerning noncitizens.
Future of the liberal-capitalist system
The future of the liberal capitalist system is increasingly endangered due to the domination of countries and the disregard of global regulation. Even countries such as the United States that have been thought to champion regulation are losing power, and countries such as India getting power and overlooking regulation on nuclear weaponry.
Reference List
Held, D 2004, ’Globalisation: the dangers and the answers’, Open Democracy. Web.
Rieff, D 2006, ‘Globalization 2.0’ New York Times Magazine. Web.