Globalization and a Pluralistic society - Essay Example

The process of globalization has brought in pluralistic society and changed the dynamics of international business which have become more challengingand interesting. According to Stiglitz, globalization has brought in more influx of multinational companies in the developing countries which have all negotiated with the intent purpose of benefiting the parent companies. The challenges of the emerging times have therefore become multifold that need to be addressed through innovative leadership approach and establishment of international agencies that would facilitate trading and communication amongst the countries across the globe (Stiglitz, 2006). WTO1 is one such agency that establishes guidelines and norms for promoting trans-national businesses and acts as arbitrator for resolving inter-state disputes in mutually satisfying manner. WTO is one of the most successful agencies for promoting mutual cooperation among the countries and provides neutral platform to resolve trade disputes. The functions and powers of the WTO that were incorporated, made sure that effective detrimental measures were included that would deter the states in exploiting other countries. It’s a negotiating platform where the member countries thrash out their trade related differences amicably and promote international trade. Doha round of WTO trade talks have become highly relevant primarily because of the new compulsions that the global business faces due to emerging new dynamics of globalization, threats from terrorism, environmental imperatives and increasing recessive trends in the global economy. Hence, successful conclusion to the Doha talks is essential for improved and mutually satisfying trade between nations. In November 2001, the trade talks in Doha had come into focus because of the need to incorporate measures that would help meet the challenges of the contemporary times with wider understanding of new compulsions. Widely known as ‘Doha Development Agenda’, the talks brought also into focus the new environmental paradigms that had become tools of bargaining by the developed nations and means of exploitation of under-developed and developed economies. Doha round of talks was centred on the development issues vis-à-vis international trade agreements that would promote liberalization of global markets, especially in the areas of agriculture, manufacturing and services (OECD). Major concerns of trade barriers between the developing nations like India, China, Mexico, Brazil etc. and developed nations like America and European Union were discussed in Doha talks. The ministerial level talks at Doha encompassed areas of trade barriers in agriculture, mainly subsidies of agricultural goods and services by US and EU, manufacturing and industrial tariffs and trade negotiations in services etc. The developed countries’ internal policies of subsidies and restrictions in import of agricultural goods are big stumbling trade blocks for the developing countries whose prospects of export of agricultural goods are significantly impacted. Doha rounds were stalled and talks could not be successfully negotiated vis-à-vis liberalizing agriculture policies, lowering tariffs for manufacturing, service sector and the road map of concessions for the developing and under-developed countries. In the contemporary environment of global business, these are vital ingredients for promoting trade across the countries and help cope with the recession. In the recent years, environment compulsions have become major trade barriers for developing countries, especially while trading with US and European Union. The barriers imposed by these countries in their trade with nations that do not comply with their environment norms and imperative have become a huge concern for the international business community. WTO intervention in the cases have brought respite to the developing nations but the increasing trend of the developed nations to impose trade embargo with countries that advertently or inadvertently violate some environmental clause is adversely impacting global trade. The cases brought to WTO by Brazil and Venezuela against US’ Clean Air Act of government’s standard for gasoline are a point in case of exploiting developing nations. The countries contested that standard applied to gasoline exported by them were more stringent than the standards for their domestic refineries. They won the case (WTO). It is true that all trade and business directly and indirectly impact environment. The advancing technology, globalization and urbanization process has left a devastating trail of destruction of natural resources which not only includes trees but also pollution of air, streams and general flora and fauna. The need for sustainable development has become one of the most crucial factors of our life. Indeed, it is time to prepare an action plan for a sustainable development strategy that would ensure a better lifestyle while maintaining an ecological balance so that our future generation can continue to enjoy our beautiful world resplendent with wildlife flora and fauna. But these are critical issues that must be tackled from an independent platform on a global basis and should not be clubbed with the global trade or become instruments of exploitation by the rich countries. Another very crucial factor is the political legitimacy of WTO while framing rules and regulations and guidelines for international trade between nations. Political legitimacy of trade institutions like WTO and multi-lateral institutions has come under lot of flak, especially after Seattle talks (McKay, 2000). The countries across the globe are independent sovereign states with well defined constitutions that promote development and general welfare of their citizens. The countries have their own compulsions and their decisions with respect to global trading are driven by own development and economic growth, benefiting their people. Hence, infringement of other countries constitution or national interest should be beyond the jurisdiction of all international agencies under normal circumstances. While some may have legitimate objection to WTO decisions but it cannot be denied that framework of WTO is based on negotiation techniques and guidelines that are mutually satisfactory. The discussed issues are critical factors of expanding global business for economic growth and raising the standard of living across the globe. The multi-lateral issues and diversity of approaches are natural consequences of advancing technology and development. The globalization has also brought in a new approach to international political economy that put countries like India, China and Brazil on the map of fast growing economic units. It has also increasingly made nations across the globe, inter dependent on each other for their socio-economic development. World Trade Organization chief Pascal Lamy says that ‘what I see from WTO members is a desire to try to finish the negotiations… that it is doable as we now have both political and technical conditions to make it possible’ (Lamy, 2008). Thus, the need for successful conclusion of Doha talks, become all the more vital in the current environment of global business. (1069) Reference Lamy, Pascal. (24 January, 2008). Beijing. Available from: [Accessed on 23 October, 2009]. McKay, D. (2000). Political Legitimacy and Institutional Design: Comparative Lessons for the European Union. Journal of Common Market Studies, 38(1): 25-44. OECD. The Doha Development Round of trade negotiations: understanding the issues. Available from: [Accessed on 23 October, 2009]. Stiglitz, Joseph.(2006). Making Globalization Work. Norton & Co. World Trade Organization. Available from: [Accessed on 23 October, 2009]. Read More