The Advantages and Disadvantages of the Process of Globalization - Term Paper Example

Globalization and Neoliberalism Introduction Globalization is defined as an increase in the volume of cross-border economic Interactions and resource flows, producing a qualitative shift in the relations between national economies and between nation-states .Alterations in aspects such as computer technology communication, and transportation have enhanced people to be more dependent than before. As a result of international organizations creating products and services and selling them to customers all internationally, currency technology and raw resources are moving so rapidly through state borders, they convey along funds, concepts, and cultures. This has brought about in laws, state economies and social activities that are developed at the universal level. On the other hand, Neoliberalism is a principle that entails personal competition, free enterprise, free markets, and nominal state interference in flows of goods, services, and funds. The fundamental logic is that market competition guarantees effective production of goods and services, and that market deregulation encourages productive economic actions that are if advantage to benefits all citizens. In developing nations neoliberalism frequently means essentials by the World Bank and International Monetary Fund (IMF) to decrease government supports for factors such as education and health care, denationalize state-owned businesses, loosen trade, degrade currencies, put more stress on production of primary goods for export purposed, and free fiscal and labor markets (Adam 56). Justification of Case Selection A world that is globalized bends regulations and emasculates both local and countrywide politics; this is similar as the linking of the nation state removed local dialects, economies, arts and political systems. Globalization produces new market sections and affluence, even as it bases extensive suffering, complaint, and wars. It can thus be described as a cause of economic repression and a reagent for international actions of social justice and freedom (Ricardo, 40).  The unlimited monetary crisis of 2008-09 has shown the risks of international economy that is not stable and liberalized. However, it has also specified rise to vital international initiatives for change. Globalization is a term that covers a wide scope of social, political and economic variations hence making it perfect for understanding the recent political economic changes occurring all over the world. Neoliberalism also defines a political-economic viewpoint that for a long period of time has had main influences on government strategies in the start of the 1970s, thus increased pointedly ever since 1980. This is an aspect that undermines or discards government participation in the economy, it instead tends to focus on free-market approaches that are structured, and less limitations on corporate actions and better rights to organizations (Hirst 431). This also proves that neoliberalism is a very suiting term for understanding the recent political economic changes occurring across the globe. This implies that both globalization and neoliberalism are both very important and necessary terms in describing the political and economic changes that are happening all over. Hypothesis In the phase of globalization, the mystery of economic progress is an issue that has turned out to be problematic. In fact, Conformist ways to economic development have turned out to be even riskier. For instance, in the last 25 years improvement in technology and global trade liberalization strategy looks to have packed down in aspects of both space and time. In a world that is typically smaller and quicker world, unpredictability spreads in an easier manner. international resources have become more and more mobile and influential, due to this, policy makers initially responsible for upholding monetary and political steadiness are in situations whereby they are in less control of the quickly changing international system (David 76). Fresh modifications to the political economic organization have required academic and politicians to reconsider old challenges in new techniques. Third world countries are thought to necessitate neoliberal economic strategies in the aim of curbing price increases and to substitute shortages in domestic investments; this can be achieved by drawing interests in the foreign capital. Bearing in mind the normal domestic saving rates in developing countries it demonstrates how required foreign contributors are. Nonetheless, at the same time, Neoliberal reorganizations have conveyed noteworthy social and monetary costs, particularly to individuals who do not fit in the high class economy group (Peter 70). Research critics argue that Neoliberalism reduces general policy self-sufficiency; in addition, it’s very expensive for people in the society that have the capability of coping with the burden. However, in the past two decades, the final revelation of style of Western individualism appears to have taken position as democracies and open-minded economies are broadcasted internationally. More globalization is thus essential in the third world countries; then again changes ought to be made to the political and economic characteristics of each state with the aim of reducing the expenses and finally to eradicate the origins of the political repercussion. Globalization has managed to integrate nationwide social classes into one universal class system whereby the supremacy of high class people is coagulated by their association to multinational wealth. Evidence There is adequate proof from countries of different economic levels and diverse regions that as states globalize, it’s their residents that tend to benefit, the benefits are in form of accessing wide and better variety of goods and services at prices that are reduced, academically qualified citizens get hold of jobs that are well paying. Other additional factors include such as improved health, and better-quality general living situations. It is not a concurrence that over the last two decades, several nations has turned out to be more exposed to international economic powers; this has seen to a situation whereby the segment of people that are termed to believing on less than a dollar a day has gone down by 50%. In both developing and the developed countries, economic investors and recipients implement strategy changes with the intentions of shaping strong economies and a more solid international fiscal system that will create more quick economic growth and at the same time reduce poverty levels. Even though developing nations add in positive ways to this process of advancement, they do not seem to profit from these influences. Neoliberalism focuses on ensuring that trade between different countries is effective. It ensures that goods and enterprises move freely, through the discovery of cheaper resources that increase profits and efficiency. To achieve this, neoliberalism focuses on the elimination of various controls that are identifies as barriers of free trade. These factors include the regulations, tariffs, authoritarian measures, and the precincts of capital and investments. The main aim of eliminating the controls is to ensure that the free market balances naturally through the pressure that arises from the market demands. This has been noted as a major explanation to the success of the market-oriented economies. Free trade entails of the major foundation of free enterprise for capitalists. However, it is noted that before the occurrence of the Great Depression in 1930s, there was a specific economic theory that was used by both individuals in both Britain and the United States. From a global perspective, the free trade was encompassed of geopolitics that made it seem as mercentalism. In Britain and the United States, the policy was successful they had an effective foundation that focuses on imperialism, colonialism, and the exploitation of other states so that they would have access to their resources. It was not referred as free trade since it had an impression similar to the improvement of mercantilist. Neoliberalism ns of had been identified that even the occurrence of the World War II, the theory had indicated sign of increased differences between the rich and poor. Based on the Great Depression that occurred during the 1930s, economists emphasize that regulation and the involvement of the government was important. This provided equity in the societies, it induced development, and it resulted to the creation of the Keynesian model of development. After the World War II, the group was indulged in its redevelopment and the development of various U.S European centered economic systems. The European Marshal Plan resulted to the reconstruction of the place, and through this, the European countries were aware of the advantages of social amenities, including education and health. It is evident that the funding programs such as the International Monetary Fund (IMF) and World Bank were formed through the Keynesian policies. This enhances the provision of regulations that govern international trade and the flow of capital. Thy also minimize future disagreements through reconstruction and development; this occurs after the temporary balance payment that any organization holds are cleared. The organizations do not influence economic decisions of the government, and they cannot create a national policy since they are denied license to such issue. The Keynasian policies have maintained he facts that the market is allowed in major social and political decisions. In this case, the state should minimize its role and indulgence in the economic factors, with the organizations being denied the acquisition of total freedom. Trade unions should be altered; this has been known to assure citizens of social protection. This has been embraced in various societies over the past couple of years, making Neoliberalism to be successful in trade promotion among different countries (John 121). Conclusion The issue of Globalization started as an economic occurrence in the start of the year 1960 in most developing and as well as developed nation. Nonetheless, with the expansion of infrastructures and the enormous technological revolution due to the liberal organizations, globalization has become an addition to the international capitalism that aims to produce a liberal international community in which liberal values carry the day. When people internationally focus on the advantages and disadvantages of the process of globalization, they would understand that whatsoever rewards have been created, typical individuals are to a boundless level complemented with unintentional effects of a process the basic inspiration of which is the development and rise of the market economies, the buildup of wealth and the boosting of profits (John 132). Despite the fact that the present underlying forces of globalization offer definite opportunities to attain technical developments, and may push in the direction of egalitarianism and radical rights, and to an addition of opening extraordinary prospects for the liberty of information. On the other hand, the process of globalization creates the way for inequalities and disparities in the dispersal of wealth in the middle of and in diverse international cultures. Nevertheless, irrespective of different people’s attitudes to globalization, it’s their moral responsibility, as advocates or challengers, to reconsider the process of globalization in a way that improves its benefits and welfares and in one way or another lowers down or eliminates its rejections. In conclusion, the aggregating exploitation and other social glitches that are created by neoliberal international free enterprise are likely to prod the socialist measures back to life in one way or another. It’s advisable for socialist groups to recuperate and initiate serious tests to capitalism in all the developing and as well as developed capitalist countries. By so doing, this growth would also bring around the likelihood of finally overruling capitalism and substituting it with a political structure that has the grounds of human needs instead of personal needs. Works Cited Adam, Smith: Wealth of nations. London: Macmillan University Press, 2007. Print Robert, Boyer: The convergence hypothesis revisited. Oxford: Oxford University Press, 1996. Print Daniel, Drezner. Globalization and policy convergence. International Studies, 3(1)1, pg. 53- 80, Print David, Ricardo. The principles of political economy and taxation. Cambridge, UK: Cambridge University Press, 1821. Print Hirst, Thompson: Globalization and the Future of the nation state, Economy and Society, 24(3), 408–442 John, Keynes. General theory of employment, Interest and Money. London: Harvard University Press, 2006. Print Peter, Evans: The eclipse of the state, Reflections of Stateness in an Era of Globalization," World Politics, Vol. 50, No. 1, pp. 62-87; Linda Weiss, 1998. Print Read More