1 ASSESSING THE VALIDITY OF DONALD SNOWS THEORY ON GLOBALIZATION AND THE EXTENT OF PRIVATIZATION Introduction At the turn of the

21st century, academicians, political pundits, and the media were abuzz about recent developments in technology and global economics and commerce. The Internet had seemingly emerged from oblivion to become one of the sensational phenomenons of the twentieth century. As political scientist Donald Snow assessed the landscape, it became apparent to him that U.S. domination in the aftermath of the Cold War was shaping the world in new ways. Specifically, America's approach to free market economics was apparently taking the world by storm. The once isolated nation of China, for instance, was steadily emerging as an economic power-player following historic reform measures ushering in free market policies. Looking to the 21st century, Donald Snow argued that a major characteristic of the new global system is the extent to which it is privatized and not controlled by governments. That is, for Snow, the emerging international system would be characterized by "the globalization of market economics" which implies a movement towards privatization.1 The following discussion assesses the validity of this claim.
1

Donald M. Snow, The Shape of the Future: World Politics in a New Century (M.E. Sharpe, 1999), 210.

Cases in Point Privatization in the Far East As any news savvy person knows, tremendous economic developments have take place in recent years in the Far East. The tiny country of Taiwan, for instance, which was once a country of peasants living in abject poverty, has been transformed through aggressive reforms that have encouraged Foreign Direct Investment (FDI) and privatization of businesses and markets. As one expert reports, Taiwan is now the world's leading exporter of electronics and computer hardware and has been transformed into a modernized paradise." 1 Development in India has also been nothing short of phenomenal over the last two decades. As widely recognized, India has become a leader in providing global services such as software development, call center support, financial services, and much more. Again, the key to these phenomenal developments in India has been reforms calling for privatization of markets and FDI. In fact, in assessing Indias past development and future directions, one expert insists that

privatization and enhanced access to FDI represent the next big frontiers for economic development in India.2
1

S K Choubey, N. G. Pendse, and Narendra Shukla, Economic Reforms in India: Need, Effects and Suggestions (Sarup & Sons, 2005), 7. 2 Ramesh Chandra, Globalisation, Liberalisation, Privatisation, and Indian Polity: In 8 Volumes (Gyan Publishing House, 2004), 72.

Have the Winds Changed? In the wake of the current economic crisis, growing concern over the failures of the free market has given rise to serious discussion about government regulation of markets and private companies. Bailout measures in the United States involving corporate behemoths AIG, General Motors, Ford, Chrysler, insolvent financial institutions, and other companies are said to come with strings attached. That is, President Obama and Congress are calling for stricter regulation and control of Wall Street and private companies that receive bailout funds. In fact, as reported, the bailout is engendering rage across the nation over the governments apparent move towards socialism. 1 On the international level, of course, all eyes are on America as the country deals with the aftermath of what has commonly been referred to as the inevitable fallout of casino capitalism. Conclusion Critics of capitalism are quick to cite the recent market failures as proof that free markets and privatization are the problem. Nevertheless, the phenomenal emergence of nations like Taiwan, India, and China attest to the validity of Snows assertions regarding the new global system and the extent to

Bailout rage: "Socialism in America...Welcome to the Third World!" Los

Angeles Times. Article on-line. Available from http://latimesblogs.latimes.com/laland/2008/09/bailout-rage-so.html

which it is privatized and not controlled by governments. That is, clearly casino capitalism has created the current global crisis and stricter regulation is needed to protect global markets and the economy. But, in the end, free market capitalism and privatization drive global development and economic progress.

Bibliography Bailout rage: "Socialism in America...Welcome to the Third World!" Los Angeles Times, 2009. Article on-line. Available from <http://latimesblogs.latimes.com/laland/2008/09/ bailout-rage-so.html. Chandra, Ramesh. Globalisation, Liberalisation, Privatisation, and Indian Polity: In 8 Volumes. Gyan Publishing House, 2004. Snow, Donald M. The Shape of the Future: World Politics in a New Century. M.E. Sharpe, 1999. S.K. Choubey, N. G. Pendse,and Narendra Shukla. Economic Reforms in India: Need, Effects and Suggestions. Sarup & Sons, 2005.