Why Globalization Works - Essay Example

? Why Globalization Works Introduction Globalization is a two edged weapon. If it is practiced with care then it can bring great benefits for states and for the world collectively. Everything in this world has an impact, which may be either positive or negative; globalization is also one of them. The impact of globalization on democracies, politics, and free markets can be influential if the phenomenon is comprehended thoroughly and effectively. To illustrate this argument, many books have been presented so far which has talked about both the effectiveness and shortfalls of globalization. This paper aims to critically review the book ‘Why Globalization Works’ which is written by Martin Wolf. In order to support the arguments, evidences from the text will also be presented. Author’s Argument Martin Wolf has presented the topic of globalization rationally. Defending globalization, the author argues that anti globalization, failure of governments and systems have been the cause of global market failures. Wolf also dismantles the argument that rich countries exploit smaller countries. He has drawn a clear picture where the problem exists (Wolf). “The failure of our world is not that there is too much globalization, but that there is too little” (Wolf 4). Thesis Statement  “For the greater good, globalization itself is a vibrant channel but as how the political system has mismanaged or mislead this channel of globalization, it has brought the worst affects throughout the world, to the world economies and to their systems”. Body The book has a strong appeal for those who are interested in globalization and its future; how democracies will make the most out of this phenomenon and how governments and their free markets will collapse due to its wrong or mere use. In order to understand the author’s argument and to prove the thesis statement, a critical analysis of the book is given below. The idea that distance, space, and technology matters is not disagreed but at the same time a territorial authority of states matter. Even though technology is noticed as a sound source which allows strong territorial control and monitoring of physical objects that crosses the borders, states should not emphasize and rely heavily on the regulation of markets; local or international. The state or a government will itself decide and plan to which extent it is going to utilize the opportunities presented by globalization (Wolf). Market failures are noticed not because of globalization but because of the system failure and the weak and ineffective policies. These failures are usually local. It is also due to the central planning as the author has termed it as ‘ludicrous’ as it does not reflect the consumer behavior or his taste, lacking the element of innovation (Wolf 59-60). It is the duty of the government to cater the basic needs of consumers by providing them the basic goods (Wolf). In order to prosper and grow, a state should realize that it needs to clean its debt and at the same time should also protect what belongs to the public. The state must show elements of ‘credibility, predictability, transparency, and consistency’ (Wolf 25). Moreover, the government must refrain itself in interfering in the business deals of merchants and investors. It should let them do business as they want because it is evident that all the Western societies have been crafted by these businessmen using the elements of ‘practicality, rationalism, and freedom of inquiry’ (Wolf). The author of the book Martin Wolf comes with a very comprehensive definition of globalization that it is something which is meant for the greater good, for the good of the world, for the good of the world’s economies and their economic revivals. The author describes globalization as a method of free trade, and a method where free movement of goods, resources and opportunities are made possible. Globalization itself is an idea to promote the greater integration of the world as the author describes in his thoughtful perception that social integration, cultural integration and business integration are some effective dimensions of globalization. When these dimensions become part of the system of globalization, which unfortunately is not, globalization will turn out in the complete favor of all. This is how the author’s argument comes out very comprehensive, as he describes globalization as a universal concept and not just an idea to serve the specific group or a specific society (Wolf). Wolf asserts fair trade as a solution for all. He asserts that by means of fair trade, countries are closer to innovative growth and progress. Actually, the author manifests fair trade as a solution for all the underprivileged countries and countries which are failing to their economies. Just as Wolf describe in his words “Trade is far cheaper than empire, just as internal development is a less costly route to prosperity than plunder” (Wolf 26). If the bribery systems are removed from all the poor countries whose governments sell out their resources in the cost of receiving nothing, there are more chances of development and progress in such poor nations. This is how the author criticizes the internal political system of the underdeveloped countries, which are flawed just because of bribery and corruption (Wolf). Wolf Martin associates globalization to liberalism as in his perception it is liberation which enlightens the idea of globalization. Limitless opportunities and freedom of inquiries are only possible when the restricting political element is removed and the feature of liberation is introduced in the system of globalization. Definitely, for bringing wealth for all and economic opportunities for all the politicized government bodies have to be gone all the away which only work for benefiting the individuals and not for the whole public. This is the critique which Wolf puts on to international business organizations like IMF, which comes out as an organization to benefit the most developed countries and not the nations which are most demanding. According to Wolf, if international institutions straighten their path by removing the political segment from their systems, they can bring the best to the world and to the world’s public. In general, the author comes out with a solution of democracy that if such institutions democratize themselves, they can create a far much better space for building the world’s business (Wolf). On a global level, globalization has been argued that its neglects environmental concerns. States have developed serious concerns to deal with these environmental issues. In order to eliminate these issues it is essential to identify the relationship between globalization and the environment. As wolf states in his book, “Stopping growth is not in option” (Kirkman and Shapiro). In order to carefully determine environmental issues wolf carefully studies the relationship between globalization and the environment. As Edward Abbey states, “growth for the sake of growth is the ideology of the cancer cell” (Kirkman and Shapiro). The ideology promotes the idea of driving market capitalism; it reflects a single minded approach that overlooks its significance. But if the issues may be addressed in an appropriate channel it may bring a positive change in the growth and prosperity. Wolf in his book agrees to the idea, “economic activities create environmental spillovers” (Wolf). He suggests that when people become rich and have higher incomes they are automatically enacted with the environmental causes and concerns. This will itself take care of the environmental issues but only on a local scale. On the global scale, “global harms’ are expected to rise continuously. The suggestion Wolf presents in the book is a solution to the environmental issues at a local level. It still remains controversial at a global scale. He suggests that the growth and prosperity of the nations shall eventually cure these issues. He neglects environmental issues that may develop with in the course of development. Wolf in the book presents the idea that shall be adopted by individual and state to cure the issues “The market must be used to remedy the harm the market would otherwise do” (Wolf). In his book he suggests that the market shall be free from “harmful subsidies” this may a good place to start fighting with the environmental. Therefore, a complete control measures shall be implemented in order to cope with issues that may be difficult for developing countries as it requires strict regulation and finance to monitor the system. Wolf in the book does not clearly defines and appreciate the nuance and depth. The suggestion he presents do not provide a deeper sight to the causes and grievances of the protestors (Kirkman and Shapiro). In the real world, globalization faces several issues that he avoids in the book. He prescribes trade liberation as the cure to all issues. Nations face a dilemma of the pirate attacks through water routes. Trade liberation is prescribed as a solution to every issue but in the real world things vary. The major issue is the management and taking appropriate measures to control free trade (Wolf). Analyzing the information it can be concluded, globalization affects the world in several non-economical way. Wolf in the book only considers the economical impacts of globalization that may be rational, but without considering the incorporating political, cultural, religious and other social perspectives. The concept of globalization seems to be incomplete and unconvincing. This is because of the reason that several states have been facing several political and other social issues that were created with the free market. Works Cited Kirkman, Bradley L. and Debra L. Shapiro. "The impact of cultural values on employee resistance to teams: Toward a model of globalized self-managing work team effectiveness." Academy of Managment Review (1997): 730-757. Print. Wolf, Martin. Why Globalization Works. New Haven: Yale University Press, 2004. Print. Read More