Globalization and Global Economy - Essay Example

?Running Head: Globalisation & Global Economy Globalisation & Global Economy [Institute’s Globalisation & Global Economy Globalisation is one of the significant transformations that the populace of the entire world has encountered in the twenty first century, which has formed a universal platform for the entire human race. With the globalisation the world has become a small place, where an individual has obtained numerous ways and means to communicate and reach anywhere in the world with no time. Nevertheless, if one declares that globalisation has left an indelible imprint on every facet of life whether it is social, political, environmental, economic, or any other, it cannot be false (Ritzer, 2009, pp. 59-62). While looking at the component of political globalisation, diverse views and opinions have come under observation. According to the perspective of globalists, globalisation corrodes the dominance of the nations. In addition, these people also believe that the nations lose their supremacy over the financial markets, which comes under control on a global platform. The globalisation has shifted the dominance to the global marketplace and universal corporations. Due to this, the multinational corporations (MNC) capture the investment decisions, instead of the local enterprises (Rupert & Solomon, 2006, pp. 25-35). Indeed, the globalisation has shifted the governance of the nations to the global institutions in general. United Nations (UN), World Bank, World Trade Organization (WHO), and International Monetary Fund (IMF) are few of the examples of the new level of governance that is the consequence of the globalisation. The masses has witnessed evolution and rise of the global governance from the decade of 1940 with the prime motive to provide assistance to modernize the post-colonial nations and to help and support the economies frayed due to wars (Rupert & Solomon, 2006, pp. 25-35). Considering the example of the International Monetary Fund, IMF is one of the financial organisations that administers and govern the matters related to the financial system on a worldwide raised area. This institution came into existence with the primary intention to protect the financial sector of the world economy. After the commencement of this institution, the economies of the world came under a universal platform that focused on the financial securities of the entire globe as a solitary factor. IMF also laid key emphasis on the trading of national assets, removal of trade barriers and produce free trade economies, cutback in the public spending funds and various others. Likewise, the World Trade Organization (WTO) is one the organisation worldwide that oversees and liberalises the international trade. Furthermore, these global institutions are set up to redesign and reform the world with the image of the free marketplace (Rupert & Solomon, 2006, pp. 40-58). Globalists who promote and advocate the concept of globalisation declares that the countries from all over the world gets better opportunities to have a close incorporation and integration with each other and the barriers to free trade is also eliminated with the globalisation. This universally warm integration results in liberal democratic world with stable and secure economies. However, according to the some schools of thoughts, the globalisation is creating a threat and risk for the economies of the nations in a way that the governments gets intimidation of disinvestments if the local organisations are not able to meet or reject to meet the demands of the multinationals (Lane, 2006, pp. 86-96). Whilst quite in contrary, the skeptics deem that globalisation does not leave any impact on to the political aspect of the country and the nation holds it power, influence, and strength over the world. Additionally, they allege that globalisation may put a limitation to the powers of the government to certain extent, but does not destabilize or threaten their ultimate powers. This is because several factors that include investments, skilled workforce, network of suppliers, proximity to customers and so forth make the multinational organisations embed in host counties. These factors play an imperative role, as it does not enable the multinationals to leave a dramatic impact on to the political aspect of a country (Legrain, 2004, pp. 156-158). Opponents and antagonists of these global governance institutions make several protests against this organisation and assert that they eradicate the rights and lives of various people on local basis. According to these people, the global governance organisations only symbolize and favor the interest and concerns of those powerful countries that have contributed in the setting up of such an institution (Lane, 2006, pp. 86-96). Additionally, the phenomenon of globalisation has shifted "the state centric politics to a new more complex form of multi-layered global governance" (Held, 1999, pp. 85). Another pivotal aspect that comes under connection with globalisation is urbanisation, such that these two are interrelated terms, which means that as the countries are becoming urbanised and industrialised, the planet is changing into a globalised arena. With the technological and scientific advancements and innovations, numerous cities and kingdoms are converting into urbanised geographical areas. Many of the Asian, American, and African countries such as UAE, China, Singapore, New York, Los Angeles, Paris, London and many more are turning into mega cities in terms of populations as well as infrastructures. In fact, quite a few of these cities has now become the fastest growing cities of the world in context to urban growth (Food and Agriculture Organization of the United Nations, 2004, pp. 55-62). These urban cities are the economic focal points of the global economy. This means that the vital and significant economic activities are being performed in the metropolitan cities that are acting as the economic hubs for the global economy. According to one of the recent studies, quite a lot of Asian countries incorporating China, India, Brazil and various others are about to rise of their metropolitan areas. Even though US still hold the governing power of the global economy, but the dominance in few areas particularly in trade has come under decline and deficit as other countries and cities are escalating on being the urbanised places. From the contemporary information and reports, it has come to notice that Europe as a region also enjoys the dominance due to being the largest trading vicinity but experience uneven and unstable economic growth rates (Food and Agriculture Organization of the United Nations, 2004, pp. 55-62). At the same time, Asian countries like Japan, China, Hong Kong, Singapore, Taiwan and several others have experienced rapid rise and growth in the last few decades, which has transformed these countries into industrialising economies of the today. In addition, few of these countries like China have emerged into one of the foremost contributors to the global economy. To put it in simple words, globalisation is the effect of the emergence and progression of megacities that have become the trademark of the urban global age (Guthrie, 2009, pp. 1-8). While the globalisation is forming a positive influence in many facets of life, it is also becoming essential and fundamental aspect of damage in various elements of life. The past records expose the piece of fact that colonialism has created a huge impact on the economic development of the world after the post independence period, where the countries were unable to compete in the market place on an international basis. However, with the emergence of globalisation, the countries experienced that IMF enforced certain policies related to cultural aspects, identity, and ways of living of a nation. This way the economies of the countries come under undermining and crippling due to the debts and liabilities (Ritzer, 2009, pp. 69-71). Since environment is inherently and naturally universal, therefore, it has come to notice that one of the unconstructive impacts that are because of globalisation is the adverse environmental spurge. Examples of global issues that have come to forefront as an adverse impact on environment and ignorance due to globalisation incorporates the depletion of ozone layer, global warming, pollution, land use and so forth. This comes under well elucidation from the fact that globalisation and urbanisation gave rise to the hazardous green house gasses, thus resulting in resources depletions which ultimately consequence in global warming (Guest, 2005, pp. 120-130). Another substantial aspect that has come under observation is the ever-growing number of population at a rampant pace, which is one of the prime reasons of resources depletion. This is because a significant proportion of the population is living in the industrialised and urbanised cities that consumes almost three fourth of the available resources, which leads to generation of the world's waste and pollution to great extent. Therefore, these urban cities have become the dominant participants to the environmental issues on a global perspective (Guest, 2005, pp. 120-130). The production of world's waste, pollution and perilous green house gasses is not only creating a devastating impact on to the land area and environment but also becoming the principal and leading cause to the climate change that is leaving a vulnerable impact on coastal areas (such as rising of sea level, flood and many more) of the cities. Examples of such mega cities that have become vulnerable to raised sea level, global warming, and flooding include African, Asian and South American geographical regions. This is because many of the cities of these countries are growing rapidly into megacities (Jansson, 2010, pp. 170-178). The urban infrastructure have decentralized and suburbanized the cities with massive usage of car transportation, which is making these cities unsustainable and being a major reason for increased pollution and environmental damage (Jansson, 2010, pp. 170-178). Poverty and Inequality on worldwide basis are two of the grave issues that have come to surface from the emergence of globalisation. Again, with reference to global poverty and inequality, diverse and dissimilar opinions have come to visibility. According to the some schools of thoughts, globalisation has been the prime motive for the decreased rates in poverty level and inequality (Kaplinsky, 2005, pp. 26-35). According to this standpoint, globalisation has brought a global marketplace, free trade, and capital mobility for the entire human race, which is essential to the development and modernisation in terms of economy and politics. This international development leads to global competition, thus consequential in closer integration with the global economy. This also means that by adapting the global policies that represents the friendly policies, the governments would be able to catch the attention of foreign investments to their countries. One of the finest examples of the attraction of foreign investments is China and India (Held & Kaya, 2007, pp. 73-78). While on the other hand, numerous people believe that globalisation is the primary reason for increased level of global poverty and inequality. This is because the powerful and industrialised nations deregulate the countries with poor economies, which becomes the basis for poverty and inequality as the developing nations take away the growing concentration of wealth. As an outcome, the poor countries are not able to fight and race with the richer economies on equal stands (Held & Kaya, 2007, pp. 73-78). To put the entire paper succinctly, the phenomenon of globalisation has come under vision from two perspectives: good (winner) and bad (loser). From the good perspective, globalisation has given rise to the global free market, which should be promoted. In addition, globalisation has also led to economic prosperity and wealth to greater level, which has also transformed the political aspect of the countries across the world in a broad spectrum by providing more secure and democratic world. Furthermore, urbanisation and globalisation have come under connection and association with each other since the globe and its people have come across the industrial revolution. According to many of the advocators, globalisation has an enriching potential that can enhance and improve all facets of life for all nations including the rich and poor economies. While the other perspective that is the negative states that globalisation has escalated the facet of poverty as a economic concern, which creates an impact on to the political side of the country as more fragmented, unruly, less secure and less democratic world has come under production as an outcome. Moreover, the opponents also accept as true that the international institutions such as WTO, IMF and World Bank only imitates, reflect and signifies the interest of the richer economies and hence have failed in constructing the economic growth and poverty reduction in most of the world that represents the poor economical areas. References Food and Agriculture Organization of the United Nations. 2004. Globalization of Food Systems in Developing Countries: Impact on Food Security and Nutrition, Issue 83. New York: Food & Agriculture Org. Guest, G. 2005. Globalization, Health, and the Environment: An Integrated Perspective. New York: Rowman Altamira. Guthrie, D. 2009. China and Globalization: The Social, Economic, and Political Transformation of Chinese Society. New York: Taylor & Francis. Held, D. 1999. Global Transformations: Politics, Economics, and Culture. Stanford: Stanford University Press. Held, D. & Kaya, A. 2007. Global Inequality: Patterns and Explanations. New York: Polity. Jansson, B. S. 2010. Becoming an Effective Policy Advocate: From Policy Practice to Social Justice. New York: Cengage Learning. Kaplinsky, R. 2005. Globalization, Poverty and Inequality: Between a Rock and a Hard Place. New York: Polity. Lane, J. E. 2006. Globalization and Politics: Promises and Dangers. New York: Ashgate Publishing, Ltd. Legrain, P. 2004. Open world: the truth about globalization. New York: Ivan R. Dee. Ritzer, G, 2009. Globalization: A Basic Text. London: John Wiley & Sons. Rupertm, M. & Solomon, M.S. 2006. Globalization and International Political Economy: The Politics of Alternative Futures. London: Rowman & Littlefield. Read More