The Contemporary World

Chapter 1: The study of Globalization

 What is Globalization?

 “Globalization is a complex web of social processes that intensify and expand

worldwide economic, cultural, political, and technological exchanges and
connections.” – Dr. Cairo
 As a flow of ideas, globalization can be viewed as a synonym for
Westernization.  The ideals of democracy and equality which the United
States were founded upon are spreading across the globe.  These values are
beginning to be seen as favorable in comparison to other forms of rule in
other parts of the world.  However, some groups, such as radical Islamists,
are “potent ideological challengers to market globalism” (Steger 145) who
see Westernization as global and national factors which undermine their
faith and society.  Thus, they fight against the potential threat of
homogenization of their culture.
 Globalization is an interconnected web of social,
economic, political, cultural, and technological
processes.  However, this definition is extremely broad,
and the number of connotations and views on
globalization is nearly endless.  Globalization can also
be thought of as a flow of people, capital, goods, and
ideas.  By examining each of these aspects and angles
of this encompassing concept, a more complete analysis
can be made and similar traits of globalization will
emerge.
 Lesson 2 -REASONS FOR GLOBALIZATION

 Rapid shrinking of time and distance across the globe. One can easily cross the bridge going to the
other side of the market place due to advance tools of technology than before.
 Domestic markets are no longer rich as a consequence of many interlocking factors.
 Companies and institutions go global to find political and economic stability which is relatively
good in other countries than the country of origin.
 To get technological and managerial know how of other companies due to their advancement in
science, technology, education, health and other fields of discipline.
 To reduce high transportation costs if one goes globally using the advance tools of communication
and information.
 To be close to raw materials and to markets for their finished products which are not available in the
country of origin.
 The creation of world trade organization (WTO) had made it possible in stimulating increased cross
border trade. There are other world bodies like the UN and several arbitration bodies where
countries agree.
Lesson 2 -REASONS FOR GLOBALIZATION
 Lesson 3- MERITS OF GLOBALIZATION

 Globalization allows us to pool all our resources together.

One of the best examples of globalization within our lifetime is the construction
of the International Space Station. The cost to construct the ISS was $150 billion.
Compared to the Mir station at $4.2 billion, the price tag is astronomical. When
the first component for the ISS was launched in 1998, five different programs
came together to join in ownership, cost, and operations. The United States,
Russia, Canada, Europe, and Japan are all involved in the financing and continued
operations of the program.
 When nations work together to fund common goals, then more money becomes
useful for needs other than national defense. Imagine what we could do if the $1
trillion spent annually on warfare and defense could be used for the global greater
good?
 Lesson 3- MERITS OF GLOBALIZATION

 Globalization would also reduce labor exploitation issues.

When borders become less restrictive around the world, people tend to move to
locations where their best opportunities exist. Under the current structure of our
planet, impoverished nations with a lower standard of living offer wages that the
developed world would find abysmal. Someone in Bangladesh making clothes for
10 hours per day earns less in a month than some workers in the U.S. earn before
lunch.
 By focusing on globalization, we could reduce child labor issues. Human
trafficking concerns would be limited because of more border freedom. People
could live, work, or go where they please with fewer restrictions, making it easier to
chase their dreams.
 Lesson 3- MERITS OF GLOBALIZATION

 Globalization reduces the prospects of tyranny.

As the world moved slowly toward globalization in the 20th century,
the nations realized that having a concentrated power with one
administration reduced the likelihood of tyranny in pockets around
the globe. Although there have still be issues with government
oppression, including the chemical attacks on populace centers in
Syria, the number of incidents is slowly declining.
 When we’re able to move toward a global-centric society instead of a
nation-centric one, these issues will continue to decline over time.
 Lesson 3- MERITS OF GLOBALIZATION

 Globalization improves communication access.

The Trump Administration announced new travel restrictions in September 2017
to focus on 8 countries: North Korea, Chad, Libya, Iran, Syria, Somalia, Yemen,
and Venezuela. “Making America Safe is my number one priority,” President
Trump tweeted when announcing this decision. “We will not admit those into our
country we cannot safely vet.”
 Under a globalization perspective, people would have their risks associated by a
central perspective instead. It would be like the United Nations vetting
immigrants instead of the individual country. By reducing border restrictions, we
improve communication access because we’re no longer restricting the
movements and actions of people on a per-nation basis.
 Lesson 3- MERITS OF GLOBALIZATION

 . Globalization would remove tax havens for wealthy individuals and

businesses.
Tax havens are defined as either a country or independent area where taxation levies
are at low rates. They offer foreign businesses and individuals an opportunity to
keep their profits in local institutions with little or no liability. These havens share
little, if any, information about these finances with other tax authorities.
 Globalization reduces this issue because it eliminates the administrative structures in
place which allow the wealthy to hide their funds from being taxed. That would
mean these businesses and people would be treated as an average citizen is today.
Greater transparency here would lead to better funding of social programs, which
could reduce poverty and food insecurity over time.
Lesson 3- MERITS OF GLOBALIZATION
 Lesson 2- Demerits of Globalization

 Globalization has also been criticized on several

grounds. Its opponents do not hesitate to indulge in
violence. Workers, peasants, women, students and
weaker sections of society have raised their voice
against globalization. In their opinion, globalization has
benefited the rich and harmed the poor. The harmful
effects of globalization save been discussed here.
 Lesson 2- Demerits of Globalization

 Exploitation of Underdeveloped Countries:

 MNCs, based in developed countries, purchase at lower rates the raw materials of
backward countries, process them in their own countries and sell the manufactured
goods with big profit in backward countries. The huge profit, they make, is taken
back to developed, rich countries.
 ADVERTISEMENTS:
 Of course, the MNCs have opened branches in backward countries, but the local
people who work there are paid much lower salary/wage. These companies hardly
spend anything for local development. They victimize poor countries and their
people by exploiting their poverty and helplessness.
 Lesson 2- Demerits of Globalization

 Increase in Unemployment:
 The MNCs employ machines to reduce the number of
employees. Further, the governments of developing
countries have started withdrawing investment from
industries in the public sector. All this has led to huge
unemployment in those countries. The larger the
unemployment, the larger the poverty.
 Lesson 2- Demerits of Globalization

 Widening of Rich-poor Gap:

 ADVERTISEMENTS:
 Globalization brings benefits to the rich who are small in
number and keeps the vast majority of people in poverty and
misery. It is a game of winners and losers. Those who are
already rich succeed in taking advantage of privatisation while
the poor and weak are doomed to suffer.
 Lesson 2- Demerits of Globalization

 Harmful Effects of Consumerism:

 Globalization produces consumerism. People being attracted by
attractive goods and advertisements, want to buy these goods.
They would not hesitate to earn money for this by unfair means.
This has resulted in vast increase in corruption and other social
evils.
 Lesson 2- Demerits of Globalization

 Adverse Effects on Social Security and Social Welfare:

 Because of privatization, governments in many developing countries are
withdrawing from the sector of social welfare, and private companies
have entered educations, health and other such fields related to
development.
 As a result of this, poor people are facing a lot of difficulties. They have
no access to expensive educational institutions and hospitals. They
cannot go for health insurance due to poverty. Social welfare has been in
disarray because of globalization.
 Lesson 2- Demerits of Globalization

 Harmful Effects on Small Industries and Small

Business:
 In the free economy, the big fish has got license to eat
the small fish. Small-scale and cottage industries cannot
grow in competition with big ones. Most of them have
begun to close. Similarly, small business people cannot
compete with big ones.
 Lesson 2- Demerits of Globalization

 Cultural Homogenization:
 Globalization would lead to cultural homogenization. Each
nation/society has its own distinct culture, but under
globalization the cultures of developing countries are eroded
and they are required to accept the values and norms of
developed countries. In place of plurality of cultures, there will
be a monoculture.
 Lesson 2- Demerits of Globalization

 Hostile to Humanism:
 Globalization would kill humanism. It aims at accelerating
economic growth, and economic growth, according to its
protagonists, can be quickly attained through privatization.
Pursuit of growth hardly respects human values. Human
concerns like equality, justice are sacrificed without raising an
eyebrow. Humanism thus falls a prey to globalization.
 Lesson 2- Demerits of Globalization

 . Erosion of Democracy:
 Globalization has led to the weakening, erosion and even destruction of democracy.
Globalization has considerably increased the wealth and power of multinational
corporations and they have tended to interfere with and control the economic policy
and politics of developing countries.
 As a result, many developing countries, one time or another, have helplessly watched
the fall of their democratic governments and their replacement by one-party
governments or military regimes willing to play to the tunes of multinationals and the
countries to which they belong.
 Lesson 2- Demerits of Globalization

 Gender-Insensitive:
 Globalization is gender-insensitive. Women have
suffered a lot under globalization. In the privatized
economy, the interests and concerns of women,
particularly of poor women, have been seriously
ignored.
 Lesson 2- Demerits of Globalization

 Destructive of Environment:
 Globalization would destroy environment. In the name
of economic development, environment is blindly
destroyed. Nature is the gift of God. But it is destroyed
for establishing big industries and dams.
Lesson 2- Demerits of Globalization