PRO GLOBALIST VS ANTI GLOBALIST

ESSAY

ON

“PRO GLOBALIST VS ANTI GLOBALIST”

by :
KHUSHBOO MURAD
ROLL no: 18
SEC-B
“PRO GLOBALIST VS ANTI GLOBALIST”

Globalization, the integration of the world technologically, economically and politically, is the most important development of our time. Global production and global markets offer business organizations extraordinary opportunities forgrowth and profits. Globalization is credited with stimulating innovation and technological progress. However, it is also blamed for increasing the gap between rich and poor, accelerating the destruction of the environment, and threatening human rights. The intensity of feelings in the globalization debate is astonishing. In the last three years, the anti-globalization movement has staged protests at meetings of the World Trade Organization, the European Union, the World Bank, the International Monetary Fund, the World Economic Forum, and the G-8.

Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. It has many dimensions: economic, political, social, cultural, environmental, security, and others. The focus here will be on the concept of "globalization" as applied to the world economy. This concept is one that has different interpretations to different people. Partly as a result of these different interpretations, there are very different reactions to "globalization," with some seeing it as a serious danger to the world economic system while others see it as advancing the world economy.

World EconomyGlobalization
The term "globalization" when used in an economic context, refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labor (although considerable barriers remain to the flow of labor). Globalization is not a new phenomenon. It is an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and execution. It began in the late nineteenth century but it spread slowed during the period from the start of first world war until the third quarter of the twentieth century. This slowdown can be attributed to the inward looking policies pursued by a number of countries in order to protect their respective industries. However, the pace of globalization picked up rapidly during the fourth quarter of the twentieth century. There are several sources of globalization over the last several decades:

➢ Technology advances that have significantly lowered the costs oftransportation, communication and dramatically lowered the costs ofdata processing and information storage and retrieval.
➢ Trade liberalization and other forms of economic liberalization that has led to reduced trade protection and to a more liberal world tradingsystem.
➢ Changes in institutions, where organizations have wider reach, due, inpart, to technological changes and to the more wide-ranging horizons oftheir managers, who have been empowered by advances incommunications.
➢ Global agreement on ideology, with a convergence of beliefs in the valueof a market economy and a free trade system.
➢ Cultural developments, with a move to a globalized and homogenizedmedia, the arts, and popular culture and with the widespread use of theEnglish language for global communication.

Positive Impact of Globalization
Globalization has various aspects which affect the world in several differentways such as:

Several fold Rise in Trade:
Emergence of worldwide production markets and broader access to a range offoreign products for consumers and companies.Particularly movement ofmaterial and goods between and within national boundaries. Internationaltrade in manufactured goods increased more than 100 times (from $95 billionto $12 trillion) in the 50 years since 1955. China's trade with Africa rosesevenfold during 2000-07 alone.

Commercial Gains:
Emergence of worldwide financial market and better access to externalfinancing for borrowers. By the early part of the 21st century more than $1.5trillion in national currencies were traded daily to support the expanded levelsof trade and investment.

Emerging Economics:
Realization of a global common market, based on the freedom of exchange ofgoods and capital. The interconnectedness of these markets, however, meantthat an economic collapse in any one given country could not be contained.

New employment opportunities:
Pro-globalist argue that globalization will create new employment opportunitiesin various parts of the world. For each office being setup, companies will berequiring hundreds of people to work in them at different levels.

World Culture:
Growth of cross-cultural contacts, the desire to increase one's standard ofliving and enjoy foreign products and ideas, adopt new technology andpractices, and participate in a "world culture". A better individual access tocultural diversity which promotes peace and understanding between people.Greater international travel and tourism.Worldwide sporting events such asFIFA World cup and the Olympic Games.

Rise in Competition and Better Technologies:
Survival in new global business markets calls for improved productivity andincreased competition. Due to the market becoming worldwide, companies invarious industries have to upgrade their products and use innovate bettertechnologies in order to face increased competition.

Increase in Information Flow:
Increase in information flows between geographically remote locations. This is a technological change with the advent of fiber optic communications,satellites, and increased availability of telephone and Internet. Most popularsecond language is English and it is being used as language for globalcommunication. About 35% of the world mail, telexes, and cables are inEnglish. About 50% of all Internet traffic uses English.

World Governance:
Some use "globalization" to mean the creation of a world government whichregulates the relationships among governments and guarantees the rightsarising from social and economic globalization. Politically, the United States hasenjoyed a position of power among the world powers, in part because of itsstrong and wealthy economy. With the influence of globalization and with thehelp of The United States’ own economy, the People's Republic of China hasexperienced some tremendous growth within the past decade. If Chinacontinues to grow at the rate projected by the trends, then it is very likely thatin the next twenty years, there will be a major reallocation of power among theworld leaders. China will have enough wealth, industry, and technology to rivalthe United States for the position of leading world power. Development of thesystem of non-governmental organizations as main agents of global publicpolicy, including humanitarian aid and developmental efforts.

Anti-globalist
The anti-globalist zone is divided into two camps. Former belonging to thedeveloped countries like USA and European nations.Their argument is mainlybased on the threat of job loss in these countries due to globalization andincrease in unemployment of skilled people. The second camp is fromdeveloped and developing countries who are considering globalization as athreat to their economy, cultural & social values and political independence.They believe that globalization or rather neo-liberalization will give access totheir country's economy to few MNCs who will use it for theirown benefitignoring the overall growth of the country.

Common concerns of Anti-Globalists

Environmental Degradation:
The removal of forests to make way for cattle ranching was the leadingcause of deforestation in Brazilian Amazon from the mid 1960’s. Recently,soybeans have become one of the most important contributors todeforestation in the Brazilian Amazon.The Worldwatch institute said the booming economies of China and Indiaare planetary powers that are shaping the global biosphere.In 2007, China overtook the United States as the world's biggest producerof CO2.
At present rates, tropical rain-forests in Indonesia would be logged out in 10years, Papua New Guinea in 15 years.A major source of deforestation is the logging industry, driven spectacularlyby China and Japan.Thriving economies such as China and India are quickly becoming large oilconsumers.State of the World 2006 report said the two countries high economic growthhid a reality of severe pollution.
The report states: The world's ecologicalcapacity is simply insufficient to satisfy the ambitions of China, India, Japan,Europe and the United States as well as the aspirations of the rest of theworld in a sustainable way.

Easier spread of Diseases:
Globalization, the flow of information, goods, capital and people acrosspolitical and geographic boundaries, has also helped to spread some of thedeadliest infectious diseases known to humans.
Drug and Illicit Goods Trade:
The Unite Nations Office on Drugs and Crime (UNODC) issued a report thatthe global drug trade generates more than $320 billion a year in revenues.The international trade of endangered species is second only to drugtrafficking. Traditional Chinese medicine often incorporates ingredients from all parts of plants, the leaf, stem, flower, root, and also ingredients fromanimals and minerals. The use of parts of endangered species (such asseahorses, rhinoceros horns, saiga antelope horns, and tiger bones andclaws) has created controversy and resulted in a black market of poacherswho hunt restricted animals. In 2003, 29% of open sea fisheries were in astate of collapse.

Anti-Globalist of Developed Countries
Unemployment because of cheap labor:They are reasoning that availability of cheap labor in Asia,Africa and SouthAmerica will result in companies shutting down there operations in the hostcountry which will result in people being laid off and forced intounemployment.

Negative effect of economic liberalization:
A flood of consumer goods such as televisions, radios, bicycles, and textilesinto the United States, Europe, and Japan has helped fuel the economicexpansion of Asian tiger economies in recent decades. However, Chinesetextile and clothing exports have recently encountered criticism fromEurope, the United States and some African countries. In South Africa,some 300,000 textile workers have lost their jobs due to the influx ofChinese goods. The increasing U.S. trade deficit with China has cost 2.4million American jobs between 2001 and 2008, according to a study by theEconomic Policy Institute (EPI). A total of 3.2 million – one in six U.S.factory jobs – have disappeared between 2000 and 2007.Concentration of wealth in the hands of few dozen people:Anti-Globalist in these countries having protesting against the concentrationof wealth in the hands of few dozen people. This unequal distribution ofwealth is voiced by anti-globalist as frightening and dangerous for thesociety.

Anti-Globalist of Developing Countries
Cultural Export:
Anti-globalist view over the effect of globalization on culture marked a rising concern.Along with globalization of economics and trade, culture is being importedand exported as well. The concern is that the stronger, bigger countriessuch as United States may overrun the other smaller countries' cultures leading to those customs and values being faded away. This process is alsosometimes referred to as Americanization or McDonaldization.

Poverty Export:
Anti-globalist see the globalization as the result of foreign businesses investing in the country to take advantage of the lower wage rate.One example used by anti-globalization protesters is the use of sweatshopsby manufacturers. According to Global Exchange these "Sweat Shops" arewidely used by sports shoe manufacturers and mentions one company inparticular – Nike. There are factories set up in the poor countries whereemployees agree to work for low wages. Then if labor laws alter in thosecountries and stricter rules govern the manufacturing process the factoriesare closed down and relocated to other nations with more conservative,laissez-fair economic policies.
There are several agencies that have been set up worldwide specificallydesigned to focus on anti-sweatshop campaigns and education of such.

International Inequality:
The World Bank defines inequality as the disparity of income and standardof living among nations and their citizens.The income gap that exists between rich and poor countries has becomesubstantial. Although great strides have been made in improving incomefrom poor nations, many regions of the world have 25% or more of theirpopulation living off less than $1 per day (World Bank, 2005). Anti-globalistthink that with the poor people having limited earning capacity, they alsohave limited access to the world’s wealth. In 2003, the richest fifth of theworld's population received 85% of the total world income, while thepoorest fifth received just 1.4% of the global income.
The UN's Human Poverty Index is a measurement of poverty that factors inilliteracy, malnutrition among children, early death, poor health care, pooraccess to safe water, vulnerability to famine or flooding, lack of sanitation,exposure to disease, a diet poor in nutrients, and the absence of education.

Brain Drain:
An opportunity in richer countries drives talent away from poorer countries,leading to brain drains.
Brain drain has cost the African continent over $4.1 billion in employment of150,000 expatriate professionals annually.Indian students going abroad for their higher studies costs India a foreignexchange outflow of $10 billion annually.

Food Security:
The head of the International Food Policy Research Institute, stated in 2008that the gradual change in diet among newly prosperous populations is themost important factor underpinning the rise in global food prices. From1950 to 1984, as the Green Revolution transformed agriculture around theworld, grain production increased by over 250%.The world population hasgrown by about 4 billion since the beginning of the Green Revolution andmost believe that, without the Revolution, there would be greater famineand malnutrition than the UN presently documents (approximately 850million people suffering from chronic malnutrition in 2005).

Drawback of linking of economies:
The world today is so interconnected that the collapse of the sub-primemortgage market in the US has led to a global financial crisis and recessionon a scale not seen since the Great Depression.

Conclusion
The pro-globalization lobby argues that globalization brings about muchincreased opportunities for almost everyone, and increased competition is agood thing since it makes agents of production more efficient. The two mostprominent pro-globalization organizations are the World Trade Organization &the World Economic Forum.
The anti-globalization group argues that certain groups of people who aredeprived in terms of resources are not currently capable of functioning withinthe increased competitive pressure that will be brought about by allowing theireconomic to be more connected to the rest of the world. This group includesFriends of the Earth, Greenpeace, Oxfam, G77, the U.S. textiles & Europeanfarm lobby, as well as the Australian and U.S. trade union movements.
For most of the 20th century, rich nations gave aid to poor nations only to seeit squandered. The people of the country must have the political will andcapability to select leaders that choose a path of economic growth instead ofcultural stagnation. Many of these countries are poor and have an unequaldistribution within the country itself due to corrupt government leaders thatview international aid as a source of personal income.Several of the poorer nations do not want to open up to international trade dueto fear of losing their own identity, when in fact they are losing an opportunityfor its people to move out of poverty.
Many of the poorer nations have an agrarian economy that is labor intensive, without technology. They are changing over to an industrial economy that isnot as labor intensive. During this transition, they will provide cheap labormarkets for multinational corporations, and wages for these people willincrease.
Globalization is a double-edged sword. It increasingly affectively the way welive and work positively and negatively, while industrial countries enjoy themerits of globalization, developing countries have to learn how to compete,otherwise, will remain dependent on others.