Where would Globalization be without Outsourcing - Essay Example

? Where would globalization be without outsourcing? Contents Contents 2 Globalization 3 Role of the nation 3 Recent developments in supra-national institutions 4 Recent developments in international policy and treaty making 5 Possible institutional future 6 Significance of the anti-globalization protest movement 6 References 8 Globalization The United Nations Economic and Social Commission have put forward a different definition of globalization. The authority has defined globalization as removal of barriers of trade so as to facilitate smooth flow of capital goods as well as services (United Nations Conference on Trade and Development, 2008). Globalization driven by trade has reached at an unprecedented pace (Wild and Han, 2009). It has laid down the path of creating new opportunities that contribute in accelerating economic growth and reduce the level of poverty. The liberalization of some of the developing countries has not translated into qualitative gains. The gains from trade in less developed countries are still not sufficient. The costs of globalization driven by trade may be unsustainable and therefore the inequalities will tend to rise further which is indeed a matter of concern. As a result the countries are becoming prone to external shocks. In order to benefit from globalization a sustainable environment is needed to be created in the context of differentiated trade policy and development landscape. The international trading system has witnessed several changes under the globally recognized challenges. The trading system has recognized the structural as well as the economic challenges that are faced by the developing countries. Role of the nation state The states must remove the trade barriers to take full advantage of globalization. Various sectors can also be protected through some legislation. The states should concentrate on development of infrastructures. The involvement of the private sector is due important in the post liberalization era. The focus of the state should be balanced development. If considerable attention is provided on some specific sectors and ignores the other that will lead to unbalanced development and therefore inequality within the economy. The role of the nation states is considered less important now a days in the context of internationalization. The process of globalization called for many multinational corporations and the control of the nation states over the economy kept on diminishing. These corporations integrate the national economies with global linkages. They have expanded drastically and the top 500 companies control a major percentage of global GNP (Lim, 2005). With the advent of new technologies at rapid rates, the whole global economy under the process of globalization is now linked. The neoliberal agenda of globalization offers minimalist for the nation states. It seems that the nation states are left with no other choice but to surrender to the demands of globalization. Some experts disagree on the diminishing role of the states. They opined that the states still play a dominant role in shaping the economy. They put forwarded the view that states implement the policies of opening up the economies to the international markets which indicates the states have the potential to manage the responses to globalization. So it can be concluded the role of the states are limited in shaping economies. Some look at the nation states as pivotal institutions and argue that globalization has only altered the situation under which the states can exercise their power (Held and McGrew, 2007). Recent developments in supra-national institutions The rules of the supranational institutions are considered superior than the national law. The demand for supranational governance tends to rise with the rise in density of international governance. In order to increase the credibility of commitment one of the logical ways is to develop supranational bodies that involves itself in resolving conflicts as well as monitor the regulations. There have been some recent notable developments in supranational institutions. New monitoring as well dispute settlement procedures were brought in under s section of the new WTO on trade of manufactured goods. The procedures have the potential to deal with the behind the border issues and resembles the role of European Court of Justice. The establishment of Rome statue of the International Criminal Court implies a move towards supra-nationality. With the recent developments in supranational institutions taken into account it can be stated that the effects the developments can have on the global world issues is much greater than that was anticipated a decade ago (Simmons, Carlsnaes and Risse, 2002, p. 247). Another recent development is supranational institutions was the development of European Security and Defense Policy. The newly created committee sets up institutional structures and procedural structures and accommodates military personnel for the first time into the structure of European Union (Miles, 2005, p. 44). Recent developments in international policy and treaty making Development is the central objective for international investment treaties. The view was espoused by the government of the member countries in the working group of World Trade organization on trade and investment. The new treaty of the United Nations will drive the world into the clutches of global governance. Global Corporation leads to international treaties. The treaty making processes are promoted using the international gatherings. The treaty making topics varied from ozone depletion to ocean pollution. The national delegates are entrusted with the responsibility of purchasing the interests of their countries. In order to participate in international treaty making processes requires knowledge on technical and scientific reports. The delegates should negotiate the treaties in favour of their respective countries in spite of scientific uncertainty surrounding the globally related concerns. The delegation will take part in several meetings to deal with the environment related treaties. The dealings get difficult when the number of member countries is large and contradictions and conflict is the outcome in a number of cases. The task of achieving sustainable development moves beyond the boundary of one country and in some cases a group of countries can accomplish the act (Susskind and Patel, n.d. pp. 3-4). Possible institutional future The general policies directed towards institutional development should ensure upholding of the values as well economic policies that will lay the foundation stone for prosperity and full employment. The policies of open trading and peace and stability are necessary for any economy to prosper. The maintenance of the open markets will be primary as the global conditions provide incentives for the governments to take protectionist measures (HUBNER, 2008, p. 3). The future institutional policies must be aimed at reviving growth. A policy of sustainable development is the need of the time. The quality of growth can be transformed that would take into account the whole economy and will reduce the level of inequality. Continuous innovations in the field of technology will help in the purpose. The resource base can be strengthened with essential human skills. The strategy of sustainable growth aims to promote harmony among the population. A political system that ensures active participation of the citizens in decision making and an economic system that generates surplus on sustained basis are the footsteps to attain a sustainable future. The ecological base for development can be preserved through production system. Trade and finance can be kept in line through a stringent international policy. The open economic regime along with the other factors will drive the global economy towards the sustainable path (UN documents, 2002, pp. 6-8). Significance of the anti-globalization protest movement Anti-globalization is defined as a grass root movement that aims to counter the trends of globalization and the harmful effects it can have on the society. The movement of anti-globalization is commonly referred to as global justice movement or a movement aimed against neo liberal globalization. The participants of the anti-globalization movement criticise the process of globalization on a number of issues. The increasing political power of the multinational organization and the increasing capability of those organizations to control the global economy is the foremost. The deregulated financial markets and free trade agreements paves the path for globalization to take place. The corporation exercising their power aims to maximise the profits ignoring the social standard principles. The followers of anti-globalization explain the potential benefits of localization. They put forward their views in the form of highest decentralization of political power and accountability of democracy. In their views competition has a positive role to play in improving the social conditions. The anti-globalization succeeded in attracting other groups and the size of the movement gained pace. The growing attention and power resulted in self perpetuating growth. The manifest of the movement differs between organizations and also between the countries where the protest is taking place. The groups are transitory and fluid and barely outlive the actions for which it was originally created. The anti-globalization movement have been merely treated as localized movements which actually make little sense as there is absence of localist in the anti-globalization movement. The followers of the anti-globalization movement desire to reconstruct the world and believe that there is opportunity to create a new world (Clancy, n.d.). The followers of the movement project economic development to be centred among the countries that have made remarkable progress so that the progress will be bounded with the geographical boundaries. In this way all the other nations will try to match up the progress made by the country under consideration and in this way a competitive situation will emerge. References United Nations Conference on Trade and Development, 2008. “Globalization for development: the international trade perspective”. [pdf]. Available at: http://unctad.org/en/docs/ditc20071_en.pdf. [Accessed:1st November, 2012]. Wild J. and Han, J. 2009. “International Business: The Challenges of Globalization: Global Edition”. Pearson Education. UK. Held, D., and McGrew, A. 2007. “Globalization/Antiglobalization: Beyond the Great Divide”. 2nd edition. Cambridge: Polity. Lim, J. 2005. “On the Role of the State in an Increasingly Borderless World”. [online]. Available at: http://globalization.icaap.org/content/v5.2/lim.html. [Accessed:1st November, 2012]. Simmons, B., Carlsnaes, W. and Risse, T. 2002.” Handbook of International Relations”. [online]. Sage. UK. Miles, L. 2005. “Fusing With Europe?: Sweden In The European Union”. [online]. Ashgate Publishing, Ltd. Susskind L. and Patel, D. n.d. “Strengthening the global treaty-making system”. [pdf]. Available at: http://www.eolss.net/Sample-Chapters/C14/E1-36-06.pdf. [Accessed:2nd November, 2012]. HUBNER, D. 2008. “"Meeting the challenges of the future –institutional development of the European Union after the Lisbon Treaty". [pdf]. Available at: http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&ved=0CEAQFjAE&url=http%3A%2F%2Feuropa.eu%2Frapid%2Fpress-release_SPEECH-08-454_en.pdf&ei=FHKTUI-4Oo3qrQf464CoBg&usg=AFQjCNFpO5WmTy62Kw4w4jsFdgp_9nNA6w. [Accessed:2nd November, 2012]. UN documents, 2002. “Our Common Future, Chapter 2: Towards Sustainable Development”. [online]. Available at: http://www.un-documents.net/ocf-02.htm. [Accessed:2nd November, 2012]. Clancy, K. n.d. “The discontinuities of the anti-globalization movement in Canada and as arbiters of global change”. [online]. Available at: http://comcul.ucalgary.ca/Transformations#_Toc227637466. [Accessed:2nd November, 2012]. Read More