Globalization and Its Variant Effects on Germany - Essay Example

Running Head: Effects of Globalization Globalization and Its Variant Effects on Germany 29th October 2009 “Instead of having a set of policies that are equipping people for the globalization of the economy, we have policies that are accelerating the most destructive trends of the global economy” --- Barack Obama Introduction Germany continues to be one of the strong, largest and competitive economies in the world due to its participation in globalization. The German economy is the fifth largest economy in the world measured on the purchasing power parity, largest exported of goods and third largest exported of services. Apart from being the Europe’s largest economy, Germany is the fourth largest manufacturing producer and automobiles, third largest in commercial services exporter, in global patent, and developed financial sector. According to Global Competitiveness Index, Germany is the seventh most competitive nation in the world and second foremost destination for R&D investments by foreign companies. (Hamilton and Quinlan, 2008) Technology facilitates the process of globalization dislocating human being from time and space and places them in the world where future and past exist simultaneously. (Alli, et.al, 2007) Global environmental worries were the result of the recognition that ecological processes do not always respect national boundaries and that environmental problem often has impacts beyond borders. (Najam et. al., 2007) Though Germany is advancing at a very good pace, it is necessary to identify the effects of globalization on some of the societal factors like environment, crime and disease. Effects on Environment Globalization shows its impact on various factors of nations’ environment like its economy, knowledge, governance, trade, etc. Globalization is increasing global competition between companies and locations resulting into global competition. Not surprisingly, Germany is benefiting from the process of globalization in the field of exports which accounts for 45% of economic output. Direct investment increased from US $13bn in 1970 to US $1500bn in 2007 and between 1995 and 2005, the companies from all over the world invested US $430bn in Germany, which is the fifth largest direct inflow of investment in the world. Despite the growth in private equity industry, investment market is far behind many other European counterparts. As per Federal Statistical Office of Germany (2007), globalization has resulted into increased job opportunities as the number of jobs in the field of automobiles and automobile parts increased from 575000 in 1995 to 706000 in 2005, plastic goods from 299000 in 1995 to 383000 in 2005 and secondary raw material from 12000 to 22000 in 1995 and 2005 respectively. (BDA, 2009) But increase in job opportunities has not done any good for its human resources in term of remuneration. Many automakers like General Motors, Volkswagen, and DaimelChrysler showed signs of reducing the labor costs. (ICMR, India, 2005) Further Eichengreen (2007) states the Germany is losing its manufacturing prowess because the expensive labor cannot compete with equally skilled cheap labor in the east resulting in the decline of employment in manufacturing sector. Globalization has surely hit the employment factor in Germany wherein most of the companies irrespective of their operations, have intended to expand their business and this strategy of the companies resulted in the elimination of 2.2 million jobs. And moreover, a recent survey by German Business Consultant Roland Berger and the University of Aachen revealed that 90% of heavy machinery and construction firms wanted to relocate their parts of business at locations where low labor costs are in offer. Adding to this, one more survey conducted by Horst Wildemann, out of the surveyed companies, 60% intended to expand their business out of Germany in the coming four years as compared to 32% who did the same in the past four years. (Speigel Online, 2004) Globalization in Germany is not so fruitful as compared to other developed countries which can be seen through below figures wherein investments are on low, profits are low, tax burden is high and wealth is shrinking. Effects on Crime Issues The effects of globalization are not limited to environment, everything is interrelated. As the globalization lead to negative changes in the environment of the nation’s economy resulting in job cuts, unemployment’s which in turn results in rise of criminal activity. Globalization is making crime more transnational. The nations with high GNP, well equipped police like Germany, US, Australia are all suffering from some of the highest crime rates. Globalization has resulted into internationalization of criminal activities and mafia type organized crimes. (Dino, 2007) The globalization has not brought development along with it, but also brought increased crime rates, higher rate of illegal immigrants, etc. However, the department of state analyses the situation as under control as compared to its US counterpart. Further analysis reveal that there is low to medium rate of well planned and publicized demonstrations concerning education, economic, and social issues. (OSAC, 2009) The globalization has resulted into increased rates of murder, wherein Germany ranks 10th and drug offences with 1st rank. (NationMaster.com) The globalization has brought many illegal activities in the community like prostitution, human trafficking for money, illegal immigration, etc. Effects on Health Globalization is driven and constrained by number of forces as explained above like economic processes, technological development, political influences, cultural and value systems and social and natural environmental factors which directly or indirectly impact health which cause profound changes in ecological, biological and social conditions that shape the burden of infectious diseases in certain group of population. (UNICEF, 2004) Martin (2005) states that globalization is reshaping the social geography wherein the nation may strive to create health or prevent disease. Health is one of the barometers or marker of social infrastructure and social welfare. Further, he also emphasizes on the fact that as globalization has effects on health, health and disease can effect globalization too. According to United Nations, global health is problems that transcend national boundaries, that may be influenced by circumstances or experiences in other countries and that are best addressed by cooperative actions, and solutions, whether they occur in developing countries, countries in advanced transition or industrialized countries. (Dr. Saddique) Globalization has produced new ways of spreading diseases as like through transportation of goods wherein seven people died after handling blood and tissues sent from African green monkeys in Uganda which was later named as Marburg Virus. (UNICEF, 2004) HIV, AIDS, tuberculosis, cholera and malaria are some of the few infections that spread to new regions through global travel and trade. (Fidler, 1996) According to the statistics revealed from Nation Master, drugs can be easily accessed at 95% ease ranking 18th overall, 0.522 per 1000 adult people are living with AIDS which makes us to understand that spread of disease through globalization is rampant in all forms and processes of globalization. Conclusion Globalization has long lasting effects on every aspect of the nation, society and community. The nation’s economy not only has positive effects but is also drastically affected by various policies that don’t fit into the economy deteriorating the economic health and calling for political and social unrest. The process of globalization creates more opportunities for criminals for them to globalize. New forms of criminal activities take place like hijacking, terrorism, etc. that make the life more and more difficult. And last not the least, health is getting unsafe, just due to globalization. People are moving, products are moving, and trade is taking place to promote the economy which results into corporate crime, further deteriorating the conditions of health. The recent, swine flu can be taken as example, which engulfed most of the countries around the world forcing people to wear masks to prevent infection. Yet globalization is inevitable. But, there are various agencies working out different policies to cope with natural and unnatural calamities and forces which may give a better look to the future. References 1. Alli, M.A., Winter, S.G. and May, D.L (2007) Globalization: Its Effects, International Business & Economics Research Journal, Volume 6, No. 1, pp. 89-96 2. BDA (2009) Globalization and the German Economy, Volkswirtschaftlicher Argumentendienst, No. 6, 3. Dino, A. , 2007-07-25 "Mafia-Style Organized Crime Changes and Transformations in the Globalization Age" Paper presented at the annual meeting of the The Law and Society Association, TBA, Berlin, Germany . 2009-05-24 fromhttp://www.allacademic.com/meta/p177707_index.html 4. Eichengreen, B (2007) The German Economy: Be careful what you ask for, VOX, http://www.voxeu.org/index.php?q=node/420 5. Fidler, D.P. (1996) Globalization, International Law and Emerging Infectious Disease, Emerging Infectious Diseases Volume 2, No. 2 6. Globalization and Its Effects on the German Economy, (2005) International Business Environment, 28th October 2009 Retrieved from http://www.icmrindia.org/casestudies/catalogue/International%20Business%20Environment/CLIBE008.htm 7. Hamilton, D.S. and Quinlan J.P. (2008) Germany and Globalization, Centre for Transatlantic Relations, Washington DC. pp 1-3 8. Martin G. (2005) Globalization and Health, London http://www.globalizationandhealth.com/content/1/1/1 9. Najam, A, Runnalls D. and Halle M (2007) Environment and Globalization: Five Propositions, International Institute for Sustainable Development, Ministry of Foreign Affairs of Denmark, Canada pp. 1-10 10. NationMaster, German Crime Statistics, http://www.nationmaster.com/country/gm-germany/cri-crime 11. Nation Master, German Health Statistics http://www.nationmaster.com/red/country/gm-germany/hea-health&all=1 12. OSAC (2009) Germany 2009 Crime & Safety Report, Crime & Safety, Europe – Germany, https://www.osac.gov/Reports/report.cfm?contentID=97734 13. Spiegel Online International (2004) Goodbye ‘Made in Germany’? Updated on 26th October 2004 Retrieved on 28th October 2009 http://www.spiegel.de/international/0,1518,324921-2,00.html 14. UNICEF (2004) Globalization and Infectious Diseases: A Review of Linkages, UNICEF, UNDP, Geneva. Read More