Thursday, 18 May 2017

Contesting Views On Globalization.

     Globalization is a Process fueled by, and resulting in, increasing cross-border flows of goods, services, money, people, information, and culture.(David Held: 1999) Robert Gilpin defines globalization as the "increasing interdependence of national economies in trade, finance, and macroeconomic policy." Globalization is the free movement of goods, services and people across the world in a seamless and integrated manner. Main features of globalization are liberalization, means the freedom of the industrialist/businessman to establish industry, trade or commerce either in his country or abroad; free exchange of capital, goods, service and technologies between countries and free trade. Globalization of economic activities is another major feature which means Control of economic activities by domestic market and international market; coordination of national economy with world economy. Connectivity is another characteristic. Localities are now being connected with the world by breaking national boundaries; forging of links between one society and another, and between one country and another through international transmission of knowledge, literature, technology, culture and information.
     Globalization is a composite process in which integration of nation-states across the world by common economic, commercial, political, cultural and technological ties takes place. It is a multi-dimensional process. Economically, it means opening up of national market, free trade and commerce among nations, and integration of national economies with the world economy. Politically, it means limited powers and functions of state, more rights and freedoms granted to the individual and empowerment of private sector; culturally, it means exchange of cultural values between societies and between nations; and ideologically, it means the spread of liberalism and capitalism.
     A key factor behind the rise of the idea of globalization is its frequent linkage to particular (neoliberal) social and economic policies. By constructing a particular vision of global space and the 'place' of individuals, national economies and polities, the idea of globalization forms part of rhetoric to legitimize certain political strategies.

Contesting Views on globalization:
1)      A Top-Down approach-
1.      Globalization originates from developed countries and the MNCs (multinational corporations) based in them.
2.      Technologies, capital, products and services come from them to developing countries.
3.      It is for developing countries to accept these things, adapt themselves to them and to be influenced by them.
4.       As a result, the values and norms of developed countries are gradually rooted in developing countries. This leads to the growth of a monoculture i.e. the culture of the north (developed countries) being imposed on the South (developing countries).
5.       This involves the erosion and loss of the identity and the cultures of developing countries. Globalization is thus a one-way traffic: it flows from the North to the South.
6.      But this view of globalization has been contested. Some scholars have argued that globalization tends to provoke backlash at the community, local, regional and ethnic levels when the national government fails to resist or counter the invasion of globalization.
7.       In the face of aggression of globalization, the people, in protest against the failure of the national government to defend them, develop or strengthen their allegiance to their community, locality, region or ethnic group
8.      In this process, local identity, regional identity and ethnic identity take root and get strengthened. Thus globalization goes hand in hand with localization, regionalization and multiculturalism.
2)      Hyper-globalists view:
1.      Hold that autonomy and sovereignty of nation-states have been eclipsed by contemporary processes of economic globalization.
2.       Economies are becoming “denationalized.”
3.      World economy is controlled more by the current marketplace than by governments. It is believed that industry, trading, and the global financial marketplace drives the economy, with governance having little to no control over the marketplace.
4.      Believe that the power of individual governments is weakening as a whole, and that globalization has weakened the ability of individual governments to regulate the economy.
5.      Transnational governance organizations are becoming increasingly important. Many governments will have to merge together, and some may have to obey rules that they do not establish.
6.      Democratic social models implemented and protected by nation-states will become increasingly insupportable. The fundamental reconfiguration of the global economy will spell the demise of the nation-state and the irrelevance of the welfare state.
7.      While hyper globalist scholars may agree on the general factors behind globalization and the likely outcome of this process, they disagree sharply over whether these forces are good or bad. They can be distinguish between neo-liberal versus neo-Marxist orientations, and describe their different assessments of the outcomes of globalization.
8.      In terms of the “winners” and “losers” of the new global order, both orientations agree that the lines and cleavages of economic benefit are changing. On one hand, neo-Marxist scholars view the neo-liberal optimism with deep suspicion. Global capitalism, they believe, will only create and reinforce inequalities within and between countries.
9.      One the one hand, neo-liberals views this as largely a good thing. Dissemination of a "consumerist ideology" They say that nearly all countries have a comparative advantage in one way or another within the global economy. There will be groups who will be worse off, but on the whole, the benefits are greater than in the past.
10.  As liberal democracy spreads the world will develop more universal principles of economic and political organization. After these things take place a truly global civilization will become possible (Held. Et al.,1999).
11.  Increased communication due to technological advances has created more of a mass culture, than existed in the past. The Hyper globalist perspective sees the world economy as one single unit, more so than any other perspective does.
3)      Sceptic View:
1.      Hold that intensity of contemporary global interdependence is considerably exaggerated and that the hyper-globalists ignore the continued primacy of national power and sovereignty.
2.      Views current international processes as more by fragmented and regionalized than globalized.
3.      In fact, according to skeptical authors, the “golden age” of globalization occurred at the end of the 19th century. Current processes show, at best, a regionalization.
4.      They point out that, actually, the volume of trade as a percentage of national income was higher in most European countries during the pre-WWI era than it is now.
5.      They further add that trade and FDI activity has largely been concentrated in North America, Europe, and East Asia--hence, what is called globalization is in reality just regionalization.
6.      Strong-nation state is needed to facilitate trade between countries and regulate the running of the global economy. These "power countries" will regulate the trading between developing nations who do not have a strong government system. Many scholars view this perspective as more believable because those countries with a strong nation-state are more active in international commerce.
7.      Sceptics also disagree whether old cleavages are becoming increasingly irrelevant. The third world is not being drawn into a global economy that destroys old lives of benefit and exploitation. Quite the contrary, the third world, say skeptical authors, is becoming increasingly marginalized.
8.      Sceptical perspective view global capitalism as a myth. The growth of multinational corporations does not mean that nation-states are no longer relevant for governing the flows of economic benefits. Multinational corporations are still tied primarily to their home states or regions, and these ties produce benefits for these states or regions.
9.      Reject the notions of the development of a global culture or a global governance structure. What is really going on, they argue, is that global governance structures and culture exist as a disguised version of neo-liberal economic strategies that benefit the West.
4)      Transformationalist view:
1.      Emphasize the way in which globalization has brought about the spatial re-organization and re-articulation of economic, political, military and cultural power.
2.      Perspective differs fundamentally from the other two perspectives in that there is no single cause (that is, the market or economic logic) behind globalization and the outcome of processes of globalization is not determined.
3.      Globalization is considered a phenomenon that just slowly progressed over the years
4.      View the nature of national governments as changing (being reconstituted and restructured) but a description of this change as merely nation state growing or waning is oversimplified.
5.      Does not define any historical events or factors that define globalization. Globalization is just something that has been happening with no defined past or future.
6.      Understand that new world order architecture is developing, though the exact nature of the emerging patterns of stratification is not yet clear.

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