World Trade Organization - Essay Example

World Trade Organization Globalization entails within it the changing technological innovations, the improvement in structures and different infrastructures, the advancements in basic thinking mindset of man, his ability to break loose from the ordinary and reach out towards the unknown and in all essence do something which can bring about an ultimate change, for the better. Having said that, we need to understand that globalization is not just a phenomenon, it is the science of human evolution and since man has for long held fast to this belief, there can be no reason as to why he should not comprehend the basis of the phenomenon of globalization. It is a paradigm shift or a movement as we might call it, one that brings more stability within the ranks (where it is applied) and unison in the efforts and activities of all concerned. More often than not, we have seen improvements within the present day systems owing to globalization and it is because of this very perspective of change that we see world bodies doing their utmost to reach out to far flung areas and explore hidden markets for the betterment of one and all. (Berberoglu, 2005) In an economic zone, globalization plays a significant role at increasing trade on an international front which as compared to the global economy, is much faster and ahead of its time. Furthermore, we can predict an increase in the flow of capital that has been coming from the global regimes which might include for the foreign direct investment as being one part of it. (Aase, 2004) Then there are the agreements which are signed on a global scale that eventually lead to world bodies like the World Trade Organization (WTO) and others. Global financial systems also come to light as their developmental work gets thumbs up. International transactions speed up as the world bodies like WTO, WIPO, IMF and the like play their role in a more coherent and active manner. Economic practices like global sourcing or outsourcing as we know of it, off-shoring and others increase courtesy the multinational concerns. Within globalization, the legal stance is one that focuses more on the increase in the number of different standards worldwide, which in all essence must be made use of. These include copyright laws, privacy obligations, patenting and others which somehow or the other mesh along well with the legal framework of different multinationals and institutions as a result of the same. Globalization helps improve cultural exchange across a wide cross section of regions scattered all over the world. It helps in playing its due part in the multiculturalism concept where the individuals within it have easy access to the cultural diversities of one another. Apart from the advantages that globalization has offered to the modern world, there are certain drawbacks as well which go hand in hand with the same. This means that globalization is not something that can be looked upon in entirety but has to be centered on the minuses that it offers as well. For starters, they bring new and fresh challenges to the local markets as they have to meet the expectations as laid down by the reforms and works of the global companies and industrial units. For others, this may mean that they have to let go of their traditional norms and cultural values so that they can adjust in accordance with the globalization’s developments. The effect of this regime thus brings in an atmosphere of finding out the foreign entities more than their own personal selves which is indeed a drawback to say the very least. (Footer, 2006) There is decimation in the ranks of the local cultures as is apparent in the case of third world countries where influence of West is pretty clear for one and all to see. Similarly, within Africa this has been the norms for decades now. In all essence, the commercialization of culture is one significant thing that comes to mind under this discussion. This has an impact on people’s thinking, their values, their habits and behaviors. (Vanin, 2005) In fact the commercialization of culture makes one thing for sure; it keeps the local culture in cold storage and tries to show off the innate qualities, whether there or not in reality, to its adopters. No matter how much globalization boosts the world economy, it provides as a hindrance point for the local area economies since there is a lot of liberalization that happens in the global domain. International trade barriers start becoming easy targets for the global regimes and thus the individual governments face one problem or the other due to the very same. This is also a fact that profits are poured in left, right and center but then this holds true for only the multinationals and large conglomerates in the real sense of the word. Some anti-globalization bodies also suggest that globalization gives rise to capitalism and thus should be banned from the face of the earth. They believe that this form of movement is against the poor and it exploits upon their necessities and gets the best work done out of them for the cheapest possible money. The third world is thus at the receiving end of this game nonetheless, as they fathom. One of the major drawbacks that can be taken out from the globalization drive is that it makes use of the poor people and promotes child labor. This means that the third world nations are being made use of and it is because of the already developed nations that this heinous crime is being committed in the first place. (Kohler, 2003) What this also means is that the developed countries know about this fact and they somehow or the other try to cover on this aspect so that the exploitation could be maximum and there are no balanced compensations for the people who are giving in their best day in day out. Cheap labor thus accounts for the biggest reason that globalization is successful in these countries and it is without a shadow of a doubt that this can be regarded as the disadvantage of globalization. Coming to the discussion basis of the World Trade Organization, it has been made to supervise and liberalize the international trade as well as to operate the same globally. It has been working for the last ten years or so and success or failure is not a measure of the work that is being done within the realms of WTO. There are critics who are of the view that WTO has not achieved on its desired goals when it started and year in year out it has failed to touch those desired expectations of it. Then there are official reports which suggest that all is well within the reigns of WTO and it, as a global body, is meeting its goals and expectations since the time it was established. The two different viewpoints give an interesting debate into what the actual role of WTO has been over the years and what it can do in the coming times to do something productive and beneficial for its stakeholders. WTO has been a successor to General Agreement on Trade and Tariffs (GATT) which, similar to WTO operated in the wake of the operations of the international trade. The criticisms related with the existence of WTO include the basis of the rich getting richer by the day while the poor getting even poorer, which is an alarming picture of the operative measures that are being taken care of by the WTO regimes. The criticism also stems from the fact that the management of global economy is not being carried out in a fair and equal manner, rather the emphasis is geared towards providing more value and return to the rich countries and multinational corporations. There seems to be a systematic bias towards the rich countries and this is a serious concern within the critics all said and done. What this does in the end is to harm the smaller countries which means that the poor populations residing within them lose out on receiving the aids that are so very facilitating for their betterment measures and the like. The effect of having WTO membership is an interesting debate if viewed in the proper contexts. The rich are getting all the returns on their investments while the poor nations are receiving the wrath of their existence which to any mind is an unfortunate development. The system should be such that there is a balance between the rich and the poor, the fortunate few and the deprived and more than anything else; the balance mechanism needs to be set straight in order to drop off the criticism attached with the existence of WTO for that matter. The people at the helm of affairs within the WTO regimes need to understand that proper measures within their organization could mean a more balanced approach to come in to the whole equation as this would ensure better delivery of services and the much needed aid within the deprived corporations, conglomerates and countries. WTO membership should mean that more help and assistance is provided to member nations, organizations and companies alike rather than being a campaign for the big companies and countries to pocket the resources of the poor ones. This indeed would shift the public relations aspect of WTO in the positive sense. (Cline, 2004) The global markets could be provided more benefits and incentives to understand their own selves and the industrial basis if they are given more room for interacting with the big wigs present within the domains of the WTO and for this to happen, there is a dire need to have a balancing mechanism in place. Since the world is shrinking with the changing times as there is so much advancement in technological concerns and the like, the requirement is to make sure that WTO delivers quantity rather than raising concerns which are not to the benefit of any individual, party, organization or country on the same token. (Warren, 2005) A lot of negativity is attached with the whole discussion of globalization and WTO and this could be reduced drastically if the top-notch realize their responsibility towards providing more relief to the under-privileged nations and organizations and this needs to start as soon as possible. All said and done, this paper has made an earnest endeavor to pinpoint the grey areas when one touches the finer aspects related with globalization and WTO, which in this day and age are interesting and debatable topics. Much emphasis needs to be given in the relevant regards. References Cline, William. (2004). "Conclusion", Trade Policy and Global Poverty. Peterson Institute. Aase, Sara. (2004). Is Globalization a Powerful Force for Good or a Means of Exploitation? New World Order UMN news Footer, Mary E. (2006). "Organization and Institutional Aspects", An Institutional and Normative Analysis of the World Trade Organization. Martinus Nijhoff Publishers. Berberoglu, Berch. (2005). Globalization and Change; The Transformation of Global Capitalism. Lexington Books Warren, Neil (2005). "Internet and Globalization", in Partha Gangopadhyay, Manas Chatterji: Economics of Globalisation. Ashgate Publishing, Ltd Kohler, Horst. (2003). The Challenges of Globalization and the Role of the IMF. International Monetary Fund Vanin, Cristina. (2005). Real Costs of Globalization. Catholic New Times Word Count: 1,770 Read More