Globalization and its effects:

Globalization is an irreversible and irresistible phenomenon. It is very famous all over

the world. While dilating on the subject, it is important to note that globalization not
only affects us as a citizen but also as “producer-consumer in the global economy”.
In the modern contemporary world, intense debate revolves around the term
“globalization”, which is even today a continuous issue.
Before exploring the concept, we should take a look over the different definitions of the
phenomenon. Globalization can be defined as “closely interrelated integration of market
in terms of goods, services and capital”. It can also be defined as “gradual erosion of
boundaries between states through increased economic interdependence and
interlinkages can be termed as globalization.
From the above mentioned definitions, we can assume that globalization is the mutual
sharing of goods, services and capital between or among states. It is also gradually
making states closer and integrated. There are different theories about the beginning of
the concept of globalization.
Some are of the view that it started from the mid of 20th century with woods conference
1944. While the others are of the view that this concept was properly started with the
establishment of W.T.O in 1995. Whatever the reality is, it is true that the pace of
globalization was accelerated with World trading Organization. the main agenda of this
organization was to end border and fasten the trade between the states.
World bank also came in this battle of evolution of globalization and identifies three
waves of globalization focusing on economic integration.
1. First wave of globalization from 1854 to 1914.
2. Second wave of globalization from 1945 to 1973.
3. Third wave of globalization from 1973 till today.
In the post 1973 era, the cold war subsided and there was a quantum leap forward in
the “economic integration”. The free market economy became the guiding principal and
global economy spread to the larger part of the world.
There is a difference of opinion among people for beginning of the concept but nobody
can deny its importance in the modern contemporary world. From now to onward, we
will examine how trade, growth and poverty are interlinked and how best the benefits of
globalization acquired to ameliorate threat to humanity. Presumably, solutions to such
problems would then avert a backlash against globalization.
Tools of globalization:
There are two schools of thoughts about conjecture of globalization. First are of the view
that globalization is a blessing. It is the tool of peace and prosperity. It is the harbinger
of progress and prosperity. It is indispensible process in the modern contemporary
world. We cannot deny its importance in our daily life from kitchen utensils to industrial
machinery. One may approve or disapprove; the world is so prepared that it is
unavoidable.
Others are of the view that globalization is a tool of frustration. It is solely in the benefit
of rich and progress and progressive. They are also of the view that globalization is a
recipe of neu-colonialism. With the emergence of world trade organization and end of
cold war this concept evolved. Last but not the least they are of the view that it is a
theory of indirect occupation.
The third tool of globalization is telecommunication. Telecom has made things possible.
There was a time when kings took Six months to meet the counter part or a sovereign of
another state, now communication means made it so easy that an ordinary human can
talk to a person who is sitting hundreds and thousands miles away on a very cheap
expense. They are always interconnected. Physical distances have been made irrelevant
through these communication means. It is a first mean to exchange ideas. For example
face book, one can share his ideas and in no time he will get the feedback from friends
or people who are going to be affected by his idea. It is a quick way to engage into
trade. Furthermore, it is also helping people to involve in political discourses. The people
today are well aware of the governmental policies.
It is also important to note that there are more than one billion people who are the
telephone subscribers. During the decades of 1990’s the number of people using
telephone were doubled after every 20 months. So we can see that how quickly people
of this contemporary world are being use to of it.
Moreover electronic media is another tool of globalization. We can say that media is the
other way of squeezing the world into one whole. It has become the fastest way of
interrelating the world. Incident happening in one part of the world can be seen in other
parts of the globe through it very quickly. It is the strongest mean of knowing and
believing what’s happening. It is also a tool of propaganda. In the modern world, people
and states use it for their own self interest and secure support of others in their conduct.
We have a recent example of Iraq war. Media played an important role in this particular
war. The U.S Government propagated on media that Saddam has nuclear weapons
which is the biggest threat to America himself and the whole world. Despite of the fact
that 152 countries opposed him in United Nations, America attacked on Iraq under the
article 52 (self defense) of the United Nations. Then again it is also important to note
that it was the same media who reported that there were no nuclear weapons found in
Iraq. So it has performed both the roles.
The story not ends here, another important tool of globalization is internet. It is the
internet which quickly and really summarized the world into a small box. Whatever you
need, whatever u wish for, you can have it through internet. There are 200 million
people who are using computer in their daily life and 95% of them are using personal
computer. One out of every 12 is using internet. It has something for everyone. The
main purposes for using internet are;
• To get information.
• To have access to news.
• To deal in business.
• To follow the modern styles.
• To have recreation or entertainment.
It is due to this tool of globalization that one can have access to all the things he wanted
through s single click. So internet is very important tool of globalization.
Moving forward, the means of transportation are also important tools of globalization. It
is a blessing for everyone in this modern contemporary world as it helps in movement of
goods, services and capital from one place to another. It made possible for one person
to deal with another in cool and good manners. It really, enables the modern man to
tackle the problems efficiently. The voyages which were of months, now summarized to
hours. Aero plane has made it possible to travel from one nook of the world to the other
corner in hours. Means of transportation are really helping people in development and
progress. Trade between sates became the hall mark of the globalization. It has helped
the world to squeeze. From the above discussion we came to know that how effectively
and efficiently the tools of communication are playing their part. It is also important to
note that what are the aspects of our daily human life which are to be directly or
indirectly affected by globalization.
Different levels or aspects of globalization:
The political globalization is first that will be discussed over here. When we come across
political globalization, three things quickly come in our mind.
• Political organization.
• International law.
• Human rights.
Political organization was started from the emergence of United Nation organization in
1945. It was a very noble step towards humanity. Earlier there was another organization
by the name of “league of nations”. It emerged right after the end of 1st World War in
1919. The main difference between these two organizations was that the membership of
“League of nations” was partial. The portfolio was almost the same. The emergence of
United Nations Organization was a very noble step towards integrity of mankind. Under
the article 2 of the UNO quotes “all states are equal”. It is also very important to note
that the difference between the 1st World War and 2nd World War was of 20 years only
and because of the UNO the 3rd World War prevented a couple of times in the history.
The incidents of U2 and Cuban Missile Crises certainly stood the both super powers in
front of each other. It was UNO who handled the affairs very efficiently. Any insurgency
can be stopped through the platform of UNO. There is no blinking fact that the theory
and practice of UNO are at daggers drawn with each other.
Second thing which comes in political organization is International Law. It was broadly
implemented through international court of justice (ICJ). International law symbolizes
the world as globe. It prevents strong from doing any unlawful act which can harm the
inferior. The international court of justice also warns the country to not do that again.
International law is a very significant achievement of the world. All the issues between
the countries can be settled down here relating to war prisoners, territorial issues,
resources issues of neighbor/peripheral countries. International law shows world as a
single entity governed by a single law, although there is a clash among theory and
practice.
Thirdly, human rights are no more a personal issue. It is a universal problem. Earlier
human rights were not a global concern. No other state was allowed to interfere in these
matters of any other state. This statement is also written in the article 2 of the UNO.
Then in 1990’s, a rule was passed by UNO that if there is a violation of human rights in
any part of the world the whole world or the UNO will stand against it. Furthermore it is
also mentioned that culprit will be treated strictly.
The aspects of globalization regarding economy are also important. The economical
globalization is as important as any other. Its roots can be traced from 1944 with the
emergence of I.F.I. World trading Organization was formed in 1955 and later on it
transformed into GATT (general agreement on trade and tariff). The main agenda of
W.T.O. was to make border irrelevant. The second main concern of this organization was
to promote free movement of goods, services and capital. Another point of its concern is
the free movement of labour through elimination of trade barriers which include tariffs,
quotas and sub subsidies. World Trade Organization is working on same agenda. It
augmented the magnitude of the trade between two countries. By its performance and
effectiveness we can assume that it is the order of the day. Every state is
interdependent on the other. This interdependence becomes the general norm of
international politics.
State welfare and development are interrelated very closely and W.T.O. paved the way
for trade instead of aid. There are some other institutions like I.M.F who are playing a
pivotal role for globalization. These international organizations give debts to the needy
countries for their betterment and prosperity.
In addition to this, the financial globalization is also an important aspect. It is the first
layer of mutual borrowing. It is the hallmark of the contemporary world. Every country
of the world is in some ways borrower and lender in the other way. This phenomenon
creates the relationship of mutual borrowing among the states. We can take the
example of U.S.A and China relations; it is a fact that United States of America is the
largest borrower of China.
There is a term used in this concept named “mutual friction”. Dollar ($) is the America’s
national currency. It assumed the role of international currency. Wherever we are in the
world and whatever we want to buy, we shall see two price tags on that particular thing.
One will be in local currency and the other will be in Dollars. All the international treaties
are signed under this currency. There are also some other financial institutions, like
Asian Development Bank and European union, who are playing their part of act in their
areas of jurisdiction and around the world.
Cultural globalization is also a highlighting level of globalization. Every area of the world
has its own cultural values. Through the tools of globalization e.g. media, internet, the
cultural globalization is also on the rise in the modern world. McDonalds, KFC and Pizza
hut are not the parts of our culture. Foods, fads and clothing patterns are parts of all
cultures. The amalgamation of cultures in the modern contemporary world is defined as
“acculturation”. When two cultures meet with each other and a new culture comes into
existence, which is called as acculturation.
This phenomenon of acculturation can only be developed when there is a mutual
interaction between two cultures.
Previously it was done by migration. People migrate from one place to another in search
of food, shelter or better life style. In ancient times, there was no exposure to superior
or inferior culture due to the lack of interaction and transportation means. In today’s our
life no culture can remain in isolation. We can say that due to acculturation, a new
global culture is taking place.
Environmental problems are no more a personal issue. Different pollutions are no more
an indigenous or local problem .it’s a worldwide phenomenon. The question is why is it a
global problem? And the answer is that emission of carbon from one state would
damage the atmosphere and the whole world might bear one’s wrong doing.
In this regard a protocol had been signed by the name of Kyoto protocol among all the
big countries except United States of America whose carbon emission is the largest in
the world.
• America 25% carbon emission. ( check statistics)
• China 12.5% carbon emission. (check statistics please)
The third number is of India. There is no use of such protocol if the American
government is not willing to be part of it.
Another important aspect of globalization is global migration. The global organizations
promote free movement of labour and free movement of people across the borders.
From 1998-2002, every year 20 million refugee people qualified for and receive UNO’s
aid. For example, if war occurs in any area it will triggers the mass migration of people.
As happened in Afghan war. About four million Afghani people migrated to Pakistan.
Different states relax their immigration rules for their own problems. Like lack of skilled
professional, they promote the migration of people as they are facing the problem of
aging. By fore seeing human resource deficit, they have relaxed immigration rules.
As we are discussing the aspects of globalization the next aspect is globalization of
health. It has two layers. Firstly, there is a general dissemination of awareness
campaigns. Under W.H.O the world was declared as “small pox free” in 1986. After that
a vigorous campaign had been launched against Polio. Presently the campaign against
HIV AIDs is on its peak which is funded by W.H.O.
The second layer is positive as well as negative aspect of it. Like AIDs, it was confined to
to a specific area of the world. Now it spread all over the world. Same is the case with
Swine Flu, bird Flu and narcotics. Presently 95% of the opium is cultivated in
Afghanistan. Earlier the area of Golden Triangle was on top of its cultivation.
The last but not the least is educational globalization. The main factors which are
involved in this globalization are:
• Internet.
• Visa relaxation for students.
• Scholarships.
Internet as discussed earlier is a very important factor in every student of the world. It
is through internet that one can find the people of likewise. Through internet one can
have essay on any topic or phrase. Secondly the visa relaxation for students also making
it a strong factor of globalization.
Although the concept of globalization is famous all over the world, like all the other
things this concept also has some merits and demerits. We will discuss negatives of
globalization first
Negatives of globalization:
• There is a famous saying “money gets money” The first point in this discipline is that it aims at
making rich the richer and poor the poorer because of its policies, it is very much in the habit of
profiting the rich. The concept of free movement of services, labour and capital with the end of
trade barriers (tariffs and subsidies) if these barriers removed from between and let these big multi-
national companies and others to fight with the local industry, they will eat these small companies.
Globalization basically creates discrimination between the poor and the rich which is a big flaw of
this concept.
• Another demerit of globalization is that it breeds credit based economies. The first world countries
intentionally do not allow the deficit countries to stand on their feet. The third world countries are
unable to run their economies by their own, so they have to open their palm in front of big
crocodiles. These developed countries and organizations string conditions with that debt and don’t
let the smaller countries to utilize their own resources and stand on their feet.
• Prevalence of global culture means dominance of Western culture:- the West have means to
promote their culture and traditions. Modern media and entertainment sources are totally
influenced by the West. The younger generation fantasizes the west and is also playing totally in the
hands of western culture. We do not have those tools to promote our culture and traditions. It is
also important to note that Eastern and Western cultures stands for Islamic and the rest of the
world. The Muslims are lacking the modern sources of interaction to the other world so
globalization is totally in the lap of Western culture.
• It is also important to note that it is eroding the role of nation state fastly. The concept of nation
state is very important in the existence of a state. The concept of global village is eroding this nation
state concept.
• International relations of politics mean new-imperialism. The first world countries involve
themselves in the internal affairs of the unstable countries and uses money to have the people of
their own in the government. By this way, they become able to use that country for their own self
interest and exploit these countries. The politicians of third world countries are not able to develop
good plans for their prosperity and progress. So the developed countries and MNC’s give them aid
with some conditions and in that way they control the whole country.
• International law is a week law for rich and strong tool against poor. There are many examples in
support of this argument. We have some in near past too. The Iraq war and to some extent the case
of R. Davis. Although he was released after the settlement with the victim family. But there are some
issues on which he can hold behind bars. The Israeli brutality against the unarmed Palestinians. It is
also important to note that since 1991 America have used his right of veto 14 times from which 11
times he vetoed actions against Israel. International law proceeds with international court of justice
and if someone goes in ICJ against any other. It has to take permission from the accused country for
preceding the case. This makes it week and ill working law.
• The governments respond more to the MNC’s than to the interest of their own people.
Positives of globalization:-
The merits of globalization are as follows:-
• The first important merit of globalization is that it is a blessing of comparative adventure and
interdependence. The famous saying of Aristotle “man is a social animal’ is true even today. Every
state is interdependent and no state can live in isolation. History witnessing the fact that if anyone
tried to live in isolation, he faced great difficulties in response. We have the examples of Sudan,
South Korea.
• The next thing which we discuss in the merits of it is promotion of trade instead of aid. Now the
states are giving preference to trade and helping other regional and worldwide economies to stand
on their feet. The aid system has certain ambiguities with it as we discussed in the demerits. Instead
of being burden to the world, every state introducing free market systems.
• The next blessing of globalization is that it is the era of franimies giving birth to peace. We can
quote the example of United States of America and People Republic China. They are the biggest
rivals in current scenario. Yet, America is the biggest lender of China. Although they have tussles but
they will not fight with each other
• Globalization also helps us in creating harmony among different cultures. There is nothing which
the other world does not know about a specific culture. Every country has institutions to read about
the other cultures. Course of Central Asian countries in G. C. University. And department of regional
studies in American leading universities is the perfect examples of it. It helps us to come to know the
cultures of different areas of the world.
• Furthermore it is globalization which brings people very close to each other. The concept of
specific language and culture for specific region is emitting from the map of the world. The harmony
among the cultures is possible with the role of globalization which consequently results into peace.
• It is not ended over here, the concept of globalization also helping us in recognizing the human
rights. Earlier it was the sole responsibility of the state to ensure the rights of people and no one
was allowed to interfere. Every state must facilitate its citizens with basic rights. It was announced
by the UNO that there will be no boundary for human rights. Every child who comes in this world
must enjoy all the rights
• Another positive of globalization which cannot be neglected is that it is always a blessing for
consumer. The competitors will lose their profit margin for attracting more and more consumer and
in this way the consumer not only has lot more choices but the quality goods too. Whatever the
multi nationals do, it is always a blessing for the consumer. In this way it proves to be the biggest
merit of globalization for a common man. With the decrease in prices of the goods and utensils, the
consumer will be able to have more on cheaper price.
On the other hands it is important to note that it is bound to succeed. It is directly linked with
capitalism. Capitalism is the only system prevailing in the contemporary world. We have examples in
the shape of European Union; shanghai cooperation organization, SAARC, and some other regional
unions are proves of its success.
• The story not ends here; globalization is maximizing the wealth of the world. We are witnessing
the fact that when a multi-national company goes in a region, it creates an opportunity of
employment. It gives financial support for the betterment of roads and transportation. Sudan is the
case study in this context. The oil, gold and gas reservoirs were giving no benefit to the people of
Sudan. The multi-national companies went over there. They explored these reservoirs and now the
government is receiving taxes. The people are getting more jobs, the economy is growing. It can be
said that it changed the life style of the people of Sudan.
• The last but not the least positive point of globalization is free movement of capital. It allows
people throughout the world to run their business wherever they want. The free movement of
capital is bridging gaps between the countries.
Suggestions:-
• Investing in human capital. Strategies for promoting economic growth and poverty reduction
should be an important part of every country’s economic policy. There is a need to encourage
investment through economic liberalization, privatization and reduced trade barriers. There is a
need to invest in human capital, such as health and education and creating effective institutions of
governance and eradicate corruption.
• Democracy and economic growth are interlinked with each other. Economic growth can only be
possible if there is a stable system of politics. The politicians are willing to develop their state
efficiently. It can happen only when there is democratic system in the state.
• Need for a new consensus. The political leaders must take choices amid debates if they intend to
seize the opportunities to promote democracy and economic growth. A new approach is needed.
One possible approach would be to set realistic economic goals, new guidelines for provision of
international assistance and to integrate democracy building programmes into efforts to reduce
poverty.
• A real dialogue:- if the goal is to reduce poverty, the governments international financial
institutions and civil society needs to conduct a real dialogue on how to make globalization work for
the poor.
• Trade policy and poverty reduction:- the trade policy should be formulated in such a way that
takes into account the national strategies for poverty reduction and redistribution.
• UN Recommendations:-
i. Democracy and rule of law should be promoted and there should be efforts to integrate
marginalized groups into mainstream.
ii. There is a need to reduce inequalities in access to resources and opportunities.
iii. Conditions in the informal economies should be improved by providing social protection
programmes and better linkages between formal and informal economies to improve
wages, benefits and working conditions of the workers in the developing countries.
iv. There should be more opportunities for employment.
iv. Youth should be the focus of the unemployment policies.
Conclusion:-
The success of globalization would depend on how different actors that is governments;
multinational institutions, private business and NGO’s pursue the goals, not only globally but also
collectively.