Introduction
In the last two decades, the process of globalization has become quite a controversial issue. Undoubtedly, it requires thorough examination from different points of view such as economic, cultural, political, and religious. Naturally, this list is not complete, but these points seem to be the most important ones.
In the most general sense, the term “globalization” can be defined as the transformation of separate phenomena into global ones. It also can be described as a process by which the world population is united into a single entity and the way this unity functions. This process must be considered as a combination of different forces such as economic, technological, and political. The term “globalization” is often employed as a reference to economic globalization, that is, the integration of national economies into the so-called global economy by means of international trade, foreign investments, capital flows, and the widespread use of high technology.
Main body
According to Herman E. Daly, such terms as ‘’internationalization’’ and ‘’globalization’’ can be interchangeable in the majority of cases, but there is some difference. The term “internationalization” can be defined as the significance of international trade, relations among nations. “Globalization” implies the elimination of national boundaries for some purposes, for instance, economical or financial (Hoogvelt,170).
The prominent British scholar, Ankie Hoogvelt, believes, that globalization should be considered as” the intensification of human interaction at all levels—financial, social, and cultural ”(Hoogvelt,103), but also she says that “it does not necessarily reaches out and touches all parts of the globe”. Analyzing the process of globalization from an economic standpoint, she arrived at the conclusion that “a lot fewer countries, particularly in Africa, are participating in those kinds of global economic relations.
In the mean time, the global economic relations, in which other countries for instance Canada or USA are participating, are intensifying. There is a strange dualism going on.” Thus, she comes up with such a definition of globalization: “a process in which there is an economy in real time on a planetary basis, but that does not include everyone” (Hoogvelt, 115). Therefore, we cannot say that globalization spreads uniformly across the world.
As for the historical background of globalization, we can say, that since World War II, it is mainly connected with business interests, and politicians who recognized the expenses, arising out of protectionism and hindering international economic integration. Their work resulted in the Bretton Woods conference and the establishment of several international institutions aimed at overseeing the process of globalization.
These institutions comprise the International Bank for Reconstruction and Development, in other words, the World Bank, and the International Monetary Fund. Globalization was hastened by the use of technology, which has reduced the expenses of trade, and trade negotiation rounds, originally under the control of the General Agreement on Tariffs and Trade (GATT), which caused a series of agreements to remove restrictions on free trade.
Since World War II, hurdles to international trade have been reduced by means of international agreements such as GATT. Some initiatives carried out according to GATT and the World Trade Organization (WTO), for which GATT is the foundation, lead to a reduction or entire elimination of tariffs, the emergence of free trade zones with small or practically no tariffs, and reduced transportation costs.
As far as the effects of globalization are concerned, there are many different aspects of this process, for example, the industrial aspect – the emergence of international production markets and access to a wide range of products for customers and companies, especially, movement of commodities between national boundaries.
Some scholars focus their attention on the political effects of globalization. They say that it leads to the creation of the so-called “world government”, for instance, WTO, World Bank, and IMF, which regulate international relationships.
It is also very important to mention the cultural aspects of globalization: the increase in intercultural contacts; the emergence of new categories of consciousness and identities, which also comprises cultural diffusion, the desire to improve one’s living standards and enjoy new products and ideas, use new technology and be the part of the “world culture”.
Undoubtedly, we cannot forget about the informational aspects of globalization: the widespread use of high technologies turned the world into the “global village”, we can almost instantly get connected with people, who live in geographically remote parts of the world.
It stands to reason, that globalization, like any phenomenon, must have its advantages and disadvantages. As regards the benefit of globalization, we can mention the following: economies of countries that participate in the international or world economy are growing much faster than those countries that tend to be isolated from the world economy. Ably operated open economies have grown at a speed that is averagely 2 ½ higher than the pace of growth in economies that oppose the forces of globalization. Countries, which have had faster economic growth have then been able to improve living standards and cut poverty.
India has reduced its poverty rate in half in the last two decades. China has cut down the number of rural poor from 250 million in 1978 to 34 million in 1999. Less expensive imports make a wider range of consumer goods and products more accessible to more people and, through competition, can contribute to efficiency and productivity (Fisher, 28). Higher environmental awareness has resulted in positive environmental outcomes by encouraging the use of more efficient, less dangerous technologies.
High technology has drastically cut down expenses changing the very way the world communicates, learns, runs a business, and treats diseases. Between 1990 and 1999, illiteracy rates among adults in less developed countries were reduced from 35 percent to 29 percent.
The freewill acceptance by global companies of workplace standards for their production facilities in the so-called “third-world countries” has made an important contribution to respect for international labor standards. In the vast majority of cases, wages paid by multinational companies in developing countries are higher than average wages paid by national companies.
International migration has made people more aware of cultural and national identities.
Nevertheless, there is always the reverse side of the coin and the opponents of globalization can put forward a great number of counter-arguments. For instance, some countries have not been able to take full advantage of globalization and their standards of living are gradually falling further behind the developed countries. There is a yawning gap in incomes between the 20% of the richest and the poorest countries.
Where the vast majority of the earliest cases of economic globalization are recorded as being the expansion of businesses and corporate growth, in many developing nations globalization is in fact the result of the exploitation of the poor. There are factories built in the poorest of Asian countries where laborers work for barely enough to make ends meet and even children are forced to work (Korten, 98). Then when labor laws are changed in those countries and stricter rules are enforced to govern the manufacturing process these factories are closed down and relocated to some other countries, not so likely to have such strict laws.
The ever-growing interdependence of countries makes them more exposed to economic problems like, for instance, the Asian economic crisis of the late 1990s.
The main economic powers have a strong influence in the institutions of globalization, like the WTO or IMF, and this can do harm to the interests of the developing world.
Conclusion
Globalized competition can cause a ‘race to the bottom’ in wage rates and labor standards. It can also result in a ‘brain drain’ of skilled workers, where highly educated and qualified professionals, such as doctors, engineers, and IT specialists, go to developed countries because of higher wages and better career prospects. This causes acute skilled labor shortages in less developed countries (Dani, 180).
National culture and even languages can be entirely erased by the modern globalized world culture.
Thus, we may arrive at the conclusion that globalization does not spreads uniformly across the world and it is to the benefit of more developed countries and there is still a noticeable difference between the first world and the third world.
Bibliography
Ankie Hoogvelt. Globalization the Postcolonial World. Palgrave, 2001.
Korten, David. When Corporations Rule the World. West Hartford, Conn.: Kumarian Press; 1995.
Rodrik, Dani. “How far will international integration go?” Journal of Economic. Perspectives 14.7 (2000): 177-186.
Fischer, Stanley. Globalization and its challenges. American Economic Review 93. 6 (2003):25-30.