Effects of Globalization on the International System - Essay Example

Introduction Globalization refers to the process of increasing connectivity between geographically distant places aswell as the interdependence of both trade and the financial markets. The drive behind calls for globalization is that it encourages healthy competition as between producers and drives progress as between all trading countries. Globalization can take three forms: Globalization of markets and that of production. Globalization of markets means eliminating barriers that limit cross border trade between countries or trading blocs. Globalization of production refers to the breakdown of the production process such that different components are produced in different countries. This is done in the situation where the comparative advantages in manufacturing said component are high. Globalization of financial markets refers to the integration of financial systems between countries to achieve unrestricted flow of capital-seen in the trade in financial securities-between the member states. In defining politics and, by extension, understanding what global politics is, we should first separate as between politics and governance. The purpose of this clarification is to separate between an emerging term of global governance , which is used incorrectly in reference to global politics. Governance typically refers to managerial functions of controlling, coordinating, directing, and planning. Therefore, it is associated with proper legislations and policy - engineering by relevant authorities that help constitute proper administration by a government in power. However, politics is concerned with the power relations that circumvent these corridors of governance giving shape to the styles or structure of governance adopted by the duly people in power1. In practice, politics is closely linked globally to actions of powerful groups who are in control-at least for a predefined period of time-of relatively vast territorial entities called countries. Synonymous with these territorial entities is the ability to willfully, conduct internal affairs (subject to certain exemptions) without external influence. The extent to which this rule is successfully adhered to is a subject that can be well assessed under global politics, present even today. Another point of clarity is required as between global governance and international relations both of which are pertinent active factors in global politics. Global governance, which is merely a trendy term to explain the constant transformation in the international political system and international relations , which is also a euphemism for the nation's policy in dealing with others similar based on an unquestioned bias in favor of that particular nation0002. Global governance recognizes other forms of social organizations and political decision-making do not arise from a state or directed to it. According to Klaus Dingwerth and Philipp Patberg, global governance differentiates from the traditional view on international relations in four ways: The crux of international relations is the politics as between nations without paying attention to other non-state actors. Global governance considers the impact and influence of non-governmental organizations, scientific actors, and trans-national companies. The term suggests that an analysis on international interactions is done separately from other levels of social interaction. Global governance assumes world politics as a multi-level system in which all local, regional/state, national/federal and global political processes are interlinked. That, international relations traditionally is associated with power play and role of advocacy networks as instigators and sustainers of politics beyond the state. Global governance recognizes the existence and interactions between various forms of governance in which none is superior to the others. The focus of researchers into international relations is the authority and legitimization in the states desire to pursue self-interests. Global governance allows researchers to capture emerging paradigms of authority in world politics separate from that of sovereign states. Discussion Good quality and appropriate management practices are amongst the critical drivers of competitiveness necessary for any participation in the global process. Globalization and competitiveness require high skills, technology, and productivity of both human and capital labor. However, in the developing countries there are capital shortages owing to a small growth of the economies, significant technological lapse, and imperfect market coordination. Imperfect market coordination arises due to the lapse between skill formation policies such as the educational policies and the technological and industrial policies. These market inefficiencies hinder the countries from playing a larger role in the international trade subsequently contributing further to its low levels of growth. In light of theses market and coordination failures, government involvement is necessitated. In understanding the politics of globalization, we shall examine two models, which shed light on how government policies with regard to macroeconomic variables can lead to a county’s derivation of competitive edge from globalization: The Weberian Model This model by Max Weber puts forward an ideal modern state as that which is free from group (external) pressure, unitary and legitimate (in the sense that the state is formerly established to maximize social welfare). This distinguishes the model from the second Group model. The model allows us to view the state’s decision from an individual’s perspective. Under the assumption that free trade dominates protection for a small country, a gain by the country would equate to improved welfare for the citizens. Free trade was seen to be a function of tariff rates such that the complexity of optimal tariff structure (use of monopoly power in trade) would be proportional to the economy itself. In view of an average tariff strategy, the use of free trade is the most appropriate policy to adopt. Other macroeconomic variable that a country might consider under the model is immigration. In so doing, the country should seek to admit immigrants of “high quality” whose marginal product to the existing level of technology is high. The choice of variable is unilaterally chosen by the government. The Group Politics Model It refers to all other models in which policy formulation is according to a relatively structured list of citizen’s preferences. The applicable assumption is that basic preferences are identical to all the households and that the market is perfectly competitive such that all factors earn same return when the market is at equilibrium. Efforts to account for cross-sectional variation, which is significantly absent under the first model constitutes the political economy of trade and reinforces the type of foreign relations policy as well as trade regimes a country adopts. The analogy of the death of a philosopher with the end of history best describes the evolutionary paradigm in global politics2. He argues that following the end of the Cold War Socialist leaders started at their own volition looking for capitalistic solutions to the crumbling economies especially Russia and Eastern Europe and deteriorating social welfare, that there must be some progressive element within western liberalization. In effect, there is seen by the stark contrast in the American economy characterized by cheaper and generally better quality industrial goods, increased inter-linkages with other parts of the world that saw it blossom in trade and investments. Even unto now the US economy is hailed as a testament to virtues of free trade, innovation, self-reliance and a well-integrated financial system3. The changing paradigm in global politics presents itself in three components: As a constellation of policies and/or strategies Such policies are primarily as outlined in the country’s foreign policies (initially discussed under international relations) for the collective management of universal problems. The policies can be collectively carried by a universal body, stronger nation, or alliances. What actually undergoes a global political change is the social organization of people. This translates to the extent that nation-states cannot be used as the standard international unit for world politics whether or not such nations are themselves the carriers of world policies. It also means that policies of such carriers become preliminary units of evolutionary change only to the extent of acting as indicators of appropriate political transformation. A complicated system evolving under certain conditions The complexity of global political systems is seen as a mix of both ordered and chaotic systems. Ordered political systems would traditionally exhibit a steady pattern with little or no variations at all. This is usually the case with countries with a purely monarchial structure of governance. A chaotic political system on the other hand is one, which is unstable and disorderly. This is especially with countries which exhibit a high turnover of political regimes as dictated by military influence i.e. Countries which have been run exclusively by military regimes since they gained sovereignty status and which have seen a surprisingly high number of power transitions through military conducted coups as compared against the age of the state itself. Many countries in Africa would provide evidence to this system. To this end, global political system is a summation of relevant historical, present and future policies and strategies. Through this, experimentation will occur naturally between alternative strategies until a time where, given the right conditions, a strategy will emerge, and be amplified throughout the system to produce new political systems such as local communities, regional political communities, trans-regional political communities (e.g. Biome Stewardship Council) and global polity. It is key to note that these complex systems are formulated with a view unto the future and will undergo a step-wise evolution from the current state as detailed by the experts who design such systems. Correlated growth in global economies and perceptions A key factor that will ultimately determine how successful global politics have evolved is the ability of such systems to grow alongside the expectations of the people. Freud, a renowned psychologist and pioneer research into human behavior postulated that if one is able to perceive something, then they could achieve it. Evolution of global political systems unto the very helm of a polity will be worthless if the people do not adjust their expectations and attitudes alongside it. Similarly, globalization in trade must be to the extent that economies grow at a steady or slightly above steady rate to generate enough resources for the systemic implementations of necessary targets and objectives in line with the overall global political system realization. Bibliography Baylis, J. & Smith, S., 2011. Globalization of World Politics: An Introduction to International Relations. 5th ed. Washington DC: Oxford University Press. Fukuyama, F., 1992. The End of History and the Last Man. London: Hamish Hamilton. Garry, T.B. & Litan, R., 1998. Globaphobia: Confronting Fears About Open Trade. New York: Brookings Institution Press. Held, D. & McGrew, G.A., 2007. Globalization/anti-globalization: beyond the great divide. London: Polity. Kennan, G.F., 1985. American Diplomacy. Chicago: University of Chicago Press. Modelski, G., 1996. Evolutionary Paradigmfor Global Politics. Washington DC: Universrity of Wahington Press. Rajan, S.C., 2006. Global Politics and Institutions. Boston: Tellus Institute. Read More