The Gifts of Globalization - Essay Example

?Towards Worldwide Development: The Gifts of Globalization Introduction Development and Globalisation are extremely discussed and highly debated terms that overwhelmed not only the academic and business worlds but also the entire sphere of the populace. They are controversial topics that brought rise to contradicting views and opposing opinions of people around the world. To some, the concepts denote positivity that create wealth and progress, while others associate them with ill effects in society such as degradation of values, poverty and war. This paper posits that the present generation’s pursuit to universal development can be made easy due to the powerful engines of globalisation. The many a vehicle of modernisation, international diplomacy and economic dynamism of countries catapult a certain degree of prosperity that is felt worldwide. Scope of Globalisation The phenomenon of globalisation affects society's economics and politics. Its primary processes include the forces that govern improvements in technology, advancements in transportation services, increased employment and income opportunities, and cohesive intercontinental economic cooperation (Jaffe, 2006). Most countries in the world witnessed rapid developments in the area of business in the past few decades. A global village has been created to formally launch an avenue where countries can enter economic agreements. Globalisation has been said to be at the forefront of these modern-day events. On the other hand, several critics consider globalisation as a disease rather than a solution (Kalb, et al., 2004). Most people, including numerous world leaders, deem it an organized procedure that connects communities around the world to participate in a synchronised development process. In essence, the whole gamut of globalisation revolves around contemporary structures such as Information and Communication Technology, Trade Democratisation, Free Market, and diplomatic agreements that are openly participated in by all countries (Lawal, 2006). Employment-generating Activities Globalisation remains one big precursor for the exponential growth of employment opportunities among developed and developing countries. Due to the expanding consumer markets worldwide, various industries responded to the call of ‘supply and demand.’ Countries with robust workforces tremendously benefit from these activities, while other nations strategise themselves to be at par with their rivals. Such a healthy competition prompts the international community to generate quality products and outputs based on the labour of their citizens. Economic literature upholds that unemployment rates are primarily dependent on the domestic policies of governments (Kollmeyer, 2009). This fact incited political leaders and fiscal analysts to intensively study their economic regulations to perfectly suit the recent trends (Rama, 2003). For countries that formulate intelligent decisions on how to boost employment rates for their people, success is at bay. While countries that make the wrong decisions suffer greatly (World Bank, 2009). Empiric data confirmed that globalisation has a positive impact on countries where human capital is above average. In some African countries, wages are projected to increase for skilled workers, especially in the light of rising demand due to technological advances (World Bank, 2009). Increased Income The relationship between employment and income were noted by several economic authorities (Lecaillon, 1984; International Labour Office, 2000). Recent studies suggest that globalisation is also a massive contributing factor to the increase of income among workers worldwide (Mishkin, 2008). Even though there is a disparity of income distribution among countries, the fact that wages are solely based on the skills of workers cannot be downplayed in the aspect of a globalised workforce. It was noted that the skilled industries and the advanced production mechanisms of developing countries are likely to have a strong impact on their competitive advantage (Sachs, 1996). At the height of all these economic activities, majority of countries experienced significant increase in the total direct pay of their workers (Spoor, 2004). In Hongkong, it was observed that the overall direct salary has increased by 20% across the board, while in Denmark a notable 10% in the past 5 years (Greenaway, 2010). This was a survey from eastern to western countries, and the conclusion was in favour that globalisation had an impact to the labourers’ wages. International Investments This year, financial experts saw a heightened global investment rate (Franklin Templeton Investments, 2011). The rise of foreign direct investments in the last decade was propelled by the discovery of world superpowers that other developing countries also have much potential for business (Wells, et al., 2001). Of late, the swift growth of outsourcing industries in Third World countries from American and European firms was noted. Salaries of the workers in these industries were reported to be significantly attractive than those offered locally (Pearlstein, 2011). Factories and other manufacturing industries in food, textile and technologies are sprouting in the Latin American and Asian continents. This is amid public denunciation of some imported products by the locals (Neves, 2010). A Korean car company which inaugurated its plant in the United States just very recently was reported to bring thousands of well-paying jobs to the area (Bunkley, 2011). This is just one of the many testaments to the animated economic exchanges among countries in the globalised world. Breakthroughs in Technology The International Commission on Peace and Food declared its acquiescence with the notion that through technology, development is achieved. It decreed “technological advancement offers society with greater conveniences and in the process endows it with finer creative and productive abilities that spur innovation” (International Commission on Peace and Food, 1994, p.54). There is no truth behind the belief that machines are swiftly replacing people in the workforce. Scientific investigations proved that there has been a strong positive correlation between technological development and job creation. It was also indicated that the result of acquiring surplus labour is high investment scale in fixed capital that leads to heightened productivity rate and increased wage grades (United Nations, 2010). The advanced tools that ‘break the walls’ among nations and that promote understanding and cooperation among them as result of the process of globalisation benefit the entire humanity. As the world gets smaller and as big chunks of populations relocate from a home country to a new country, these communication instruments, including the Internet, ultimately, serve this modernised planet very well. Political scientist Gbenga Lawal remarked, “Economic development involves proper and adequate utilization of a nation’s resources, including modern technologies, to increase productivity for the betterment of the people” (p.70). Advances in Living Standards The favourable economic developments have led to the establishment of infrastructure, health care facilities and services around the world. Governments, given their robust economic make-up, are now giving back their people’s tax through these services. Aside from this, as income of families are now increased, their needs are now fulfilled and their level of consumption go up. Thus, it is affecting the entire economic cycle of supply and demand. This process affects all members of society. In India, statistics verified that most families in the metropolitan areas already can afford the basic requirements of living because of a member who works in a foreign company (Burbach, et al., 2001). This is also the case of Mexico, Costa Rica, China, Philippines and South Africa. The notion that the gap between the rich and the poor is widened because of globalisation is purely a myth. Opportunities are given to one and all. The fact that people are already experiencing the rewards of this economic dynamo, criticisms against this should be confronted by this answer (Blanchette, et al., 2001). Worldwide Economic Cooperation World leaders acknowledge the unmistakable need for countries to forge economic ties. Their diplomatic corps and foreign relation officers are constantly looking for cooperation and partnership to boost the general welfare of their citizens. It was reported that the global economic downturn since 2007 had urged these economic titans to develop blueprints that would help them cope with the crisis. The United States and some nations in the European Union already have taken steps to revitalise their collaboration, to enhance their teamwork and to implement co-leadership to better solve this global fiscal catastrophe (Hutchings, 2010). US President Obama took the cudgels in the calls for worldwide economic participation and commitment (Cable News Network, 2009). One of the outcomes of this leadership is an inked mutual exercise with China called the China-US Strategic and Economic Dialogue (People’s Daily Online, 2009). In the same year, a great deal of heads of state around the world gathered at the World Economic Forum in Switzerland to discuss solutions to the global economic predicament. Most of them signified the necessity of cooperation and the rejection of protectionism. Cultural Harmony Globalisation connects societies and brings people together. It links cultures and bridges international relations, economically, politically and socially. It makes a profound effect on the interaction of countries for better understanding (Schuurman, 2001). It was also argued that for human race to survive, cultural harmony should be prioritised. This has been the source of inspiration by global alliances such as the United Nations, International Monetary Fund, European Union and the World Trade Organisation to formulate programmes that promote cultural understanding among member nations. In fact, it has been promulgated by these organisations that world tourism is a pivotal force in the advocacy of world peace (Dasgupta, 2004). The United States and some nations in the European Union are seen as the best examples for cultural diversity and multiethnic harmony at work (Milward, 2003; Bertho, et al., 2008). These countries are working hard to reach out to the world to establish ties and to extend assistance in times of contingencies. The disasters in Haiti and recently in Japan proved that there are so much harmonious relationships among countries due to their globalised perspectives. Though historically, wars were primarily due to conflicts in religious views, it was also noted that the present globalised world has caused the decrease of wars on religion. Practically, religion was also seen to be essential in the promotion of peace (Werkner, 2010). While objections raised against globalisation viewed that it degenerates the moral fibres of nations, Japan’s way of doing business with the rest of the world is a perfect rejoinder to it. It was observed that the East Asian nation never changed its core values and business methods to suit with its western partners. Its prized virtue of responsibility remains noticeable in all of its major corporations (Hogan, 2005). Amid few protests, the enlistment of Turkey to the European Union was a clear indication that the association of nation-states embraces cultural differences as a fact of life. Even though some members believed that the Arab nation would somehow pose a detrimental impact on the Christian wholeness of Europe, still Turkey was voted to join their ranks. Recently, the president of the European Commission, Jose Manuel Barroso, also reiterated the need for unity among the members and expressed his zeal and commendation over Britain’s contribution to the organisation, of which other members should emulate (n.d., cited in Treharne 2011). Conclusion The developments witnessed by the world in the past decades due to globalisation have given humankind countless good returns. Globalisation stimulated these developments by eradicating poverty through employment opportunities, wage increases, foreign investments, advancements in technology, thus ameliorating the living standards of people. Globalisation has also been proven to nurture the economic cooperation and cultural understanding among nations. In a word, this modern-day reality has made the lives of the global citizens a wonderful and inspiring story. 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