Sustainable Development of Globalization - Essay Example

Running head: Globalization and Sustainable Development Student’s name Institution Course Professor Date Generally globalization implies the expanding interactions in sectors such as world trade, national and foreign investments and capital markets. It implies the increase in interconnection and interdependence between world s region, governments, various institutions, communities, families and the individuals. The advancement of information technology in different nations has demonstrated partnership that has resulted in fostered economic and financial integration. In a simpler context, enhanced global economic integration, global interlinked social and environmental development and global forms of governance contribute to the term globalization. As noted by Cooper (2001) that rich countries ought to roll back the welfare state whereas the poor nations decrease their social expenditure1. The basic indices of the development include; the eradication of poverty and inequality, improvement of the income and standard of living among the people, freedom, expansion of poverty2. Therefore sustainable development should never recede in the event of threatening scenarios and not able to endanger the environment and the natural resources, thus available for both present and future generations. Since it is multidimensional, it focuses on economic, environmental and social sustainability. Exploitation pattern of natural resources need to be regulated and terms of trade mediated so that balance in all international transactions can be enhanced. Economic globalization has been witnessed by the expanding amounts of cross border trade markets, increase in volume of international financial flows and labour. The term sustainable development was derived from the 1987 UN Commission on Environment and Development report, entitled “Our common future” as development that is able to meet the needs of the present and without compromising the ability of the future generations to satisfy their needs. Global growth is influenced by the performance of the industrial nations3 The attitudes to globalization in these nations will be a determinant to the future of the global economy. Supporting the right policies, dealing with detrimental consequences of economic change and strengthening of the internal economic system would be the objective of government on the above mentioned nations. However in continent of Africa, some of its countries are beset by difficulties in governance which has been complimented by abject poverty, frequent quarrels over the control of mineral wealth and ethnic divide by the politicians4 International trade in goods and services, transfer of money capital among various states and movement of people across national borders are vital economic and financial indicators of globalization. Consequently, the exporting and importing exercise has demonstrated to be important component of global and national economic activity (World Trade Organization). Liberalization of labour flows has impacted greatly the globalization of markets especially in North America and Europe. Hell (1999), argued that globalization is all pervasive since it is seen as economic phenomenon that deals with trade, cultural, investments, financial, spiritual aspects of the society. Globalizations have influenced culture via transfer of ideas, beliefs and knowledge across national borders. Globalization has an impact on health, since the discovery of a new treatment for a particular disease in one state can be channeled to various states. Thus helps to reduce the disease spread and in the long term improve the quality of health care provision (Hell 1999). Consequently, many states governments have taken steps to wipe out barriers to trade and the free movement of finance with the collaborations from international organizations such as World Trade Organization (WTO) and General Agreement on Tariffs and Trade (GATT).However, legal and regulatory barriers have showed to inhibit the free flow of goods and services as movement of people and capital5. Indeed sustainable development has called for consolidation of three crucial pillars of economic development, environmental protection and conservation and social equity. Among the manifestations of globalizations include; improved movement of financial capital, information and populace, additional international cultural exchanges encouraged by free trade and tourism sector.6 Globalization has facilitated the dissemination of crucial practices such as dematerialization, resource substitution, improvement of energy efficiency and metal recovery. For example the enormous substitution of environmental problematic material and energy sources for those with limited detrimental impacts to the environment. Furthermore it has become a positive force for greater cross cultural understanding through cross cultural exposure and ties7. Globalization process entails the setting up of economic, political, social and technological networks among countries. It involves removal of barriers between nations to allow exchange of goods, services, money and people. It therefore has an effect on the economy of a nation (Bartelmus, 1994). The three main indicators of globalization are international trade, money capital transfer from one country to another and free movement of people across borders. The period between 1950 and 2006b experienced a growth rate in world trade, 27-fold in volume terms, three times faster than world output growth (WTO 2007).Globalization has become a powerful driving force in current processes of economic, social and environmental change all over the world. The constant spread of market oriented approaches to development with the process of privatization and deregulation and the growth liberation of trade and investments have illustrated important trends in globalization process8. Theories of economic growth have concluded that technological capabilities are a major driving force of economic growth. Globalization encompasses an important encouragement for development in most of the nations over the world. Globalization process has contributed to stringent competition towards market and investments. It has a greater potential for the world economy and huge benefits accrued to underdeveloped nations. The positive impact of globalization has been heightened by the several reforms in the international economic and financial institutions such as The World Bank, International Monetary Fund (IMF) and World Trade organization (WTO). In addition, there are crucial transformations of governance especially in the underdeveloped nations. However, process of globalization has plunged the growth and development capability of the underdeveloped economies due to establishment of regulations and principles that posed conflict with their intended conditions of their evolutionary stage. For example since it ascribe roles to varied economies, it has created international division of labour that accelerated the disparity between the most industrialized and underdeveloped states. In Mozambique approximately 70% of the population is living in absolute poverty. Thus globalization is seen to be a contributing factor to more hardships for Africans, limited benefits accrued and prolonged marginalization of the continent of Africa. The eradication of poverty can be achieved through a holistic framework of global development cooperation and partnership9 The recipient nations would own the development process and techniques whereas the donor states offer effective and efficient supportive roles. For example, the establishment of the New Partnership for African Development (NEPAD) comprises the African solutions to the many problems faced by the continent and African techniques for long term sustainable development. Moreover it is able to set an agenda to regenerate the continent by grasping national and regional priorities and development plans via participatory process. However poverty eradication and sustainable development will remain an issue especially to undeveloped countries if sufficient resources and conducive international environment are not supplied to them10. The trade initiatives such as EPAs, AGOA and WTO negotiations will deliver development in underdeveloped nations via trade unions. Strengthening of global governance has assured the partnerships aim at win to win scenarios is embarked effectively hence sustainable development can be a reality11. The expanded use of market based approaches due to globalization has provided signals so as to internalize both environmental and social externalities in an efficient and effective way. Due to globalization, decision making process have been strengthen, whereby policies at all levels of the government are better coordinated. Both environmental and social policies are integrated into sectoral economic policies hence improvement of transparency and democratic participation of all relevant stakeholders during policy design and implementation process. Scientific invention and technological advancement have showed to contribute to expansion of growth and improvement of living standards. The global economy encompasses international trade and investment flows and distinct needs of developing countries to be involved in various global economic activities. In this instance trade and investment flows must be in harmony with environmental and social policy objectives of the society12 International trade and investments has boasted economic growth and market competition. It has stimulated technology developments and diffusion and enhancement of structural changes that will guarantee efficient utilization of both natural and environmental resources. Globalization has come up new opportunities for economic progress by expanding the scope for international division of labour and mobility of factors of production. By virtue of technical progress, the international transport and communication costs have tremendously dropped thus a possibility for international financial flows (Modelski, Devezas, Gulbenkian, 2008). Alternatively, it can pose immense risks because of global economic integration, recession, inflation and financial crisis can spread easily from one nation to the other leading to detrimental effects to economic development. Each nation ought to device strategies that can heighten the competitiveness of its economy so that it is able to maximize the benefits from while limiting the risks of globalization (Dalal-Clayton, & Bass, 2002). Globalization impacts on environment through various sectors of the economy; mining, tourism, agriculture, transport and manufacturing. Deforestation, ozone depletion, biodiversity loss, pollution and global warming are key areas impacted by globalization. There is a rapid rate of innovation which has increased the level of interconnectivity via new information and communication services delivery. Due to globalization, there is expanding pressure on natural resources use thus causing threat to invasive species and constant interference with global climate. Furthermore, there is emergence of new global institutions that engages in regulatory and operational objectives. The DGIS-Wageningen UR partnership have developed practical recommendations for policy development that will contribute to eradication of poverty, improvement of livelihood and enhancement of food security thus sustainable development. Globalization has taken pivotal role in creation and exportation of technologies that uses lesser natural resources. It has championed many nations to make a narrower scope of products more effectively13. According to the United Nations Conference on Environment and Development, (1992), various technological innovations have be channeled internationally thus limited the rate of impact to the earth’s atmosphere. Maintenance of seed banks will preserve species that might be endangered. For example, human genome diversity project sought to keep samples from unique indigenous human communities around the world. The consequences of the globalizations noted are; the recession of geographical constraints on cultural and social framework, enhancement of dissemination of ideas and technologies and transformations of cultural, economic, political foundations of the society (United Nations Conference on Environment and Development,1992). Tangible benefits have been accrued in the field of governance and culture due to globalization. The awareness of issues like human rights, gender equity, empowerment and democracy to the general has increased due to accessibility of communication media and systems such as television, radios, newspapers, computers and internet. Therefore, allocative efficiency was heightened thus growth and human development (Wijen, Zoeteman, & Seters, 2012). However globalization can aggravate threats to humans in terms of political and cultural insecurity, financial volatility and degradation of the serene environment. Innovation and ever changing aspect of globalization has been hampered negatively by outward forces that have created disruption and marginalization. These forces included; the emergence of infectious diseases, population growth and migration, climate change, loss of biodiversity and scarcity and pollution of free water ecosystems. Sustainability of globalization varies among nations of the world14. The Maastricht globalization index(MGI) with sustainability, environmental, responsible, competitiveness and human development indices to investigate if more globalized countries are performing better in terms of sustainable development and its dimensions. In this MGI model it is very difficult to differentiate globalization from regionalization and regionalization. Maintenance of integrity of all biophysical systems, proper functioning of the economy and improvement of human wellbeing and health are the core fundamental of sustainable development (Blewitt, 2008). Human development index measure the nation’s average achievements in three fundamental aspects of human development; knowledge, health and respectable standard of living. Environmental performance index deals with reduction of environmental stresses to human health and promoting ecosystem vitality and sound resource management. It focuses on the adoption of goal seven of the millennium development goals with collaboration with international environmental authorities. Global environmental facility benefit index examines the potential of a country to produce global environmental benefits especially in key areas of biodiversity and climate change. Forthcoming markets require that all relevant stakeholders; business, political and civil society top managements build an efficient public policies that will strengthen social conditions and support responsible markets. Technological and economic globalization is vital forces of the human development index. Responsible competitiveness framework requires strong policy drivers to illustrate government commitment15. They include; signing and ratification of international treaties, design of a responsible tax system and implementation of tough environmental regulations. Sustainable development planning necessities new paradigms and innovative techniques that eventually can balance both short and long terms goals and objectives. The current pattern of globalization seems unsustainable and can aggravate inequalities and sufferings across the world. Globalization was influenced by international organizations who advocated for improvement of trade and development that lead to growth of multinationals enterprises. There is increase in public awareness of the environmental impacts of trade growth and vital implications of issues between trade and environment because of globalization. Issues such as climate change, biodiversity, health and access to environmental goods and services have been integrated closely with globalization. Trade policies and liberalization ought to facilitate access to new environmentally sound technologies, goods and services and production methods (Lindert, Peter & Williamson, 2001). Sustainable development requires radical change in both domestic and international level. Market based, regulatory and technology policies must be able to implement change in a transparent and accountable way. Consequently, globalization has been a major force that stimulates allocation of resources, competition and international dissemination of technology International financial institution such as International monetary fund has a role in attaining sustainable development. It facilitates economic growth by promoting international monetary cooperation and exchange rate and involved in resolving balance of payments problems. It works closely with national governments to ensure that sound economic policies are put in place. Sustainable development can be witnessed by the integration of both international economic governance and international environmental governance (Great Britain Department of Trade and Industry, 2004). Since the synergies of trade and environment policies are mutually supportive to one another. Achievement of sustainable development have been hampered by increased global population, degradation of environment, rapid depletion of natural resources and also weakening of ecological carrying capacity. Avoidance of environment and human rights aspects of development can threaten the long term economic development efforts16 International trade agreements present multifaceted relations between economic, environmental and social consequences of trade and trade liberalization. National and international policies have been suited to make economic globalization foster sustainable development. International organizations put emphasis on economic openness and trade liberalization. A robust economy together with social equity and wise use of natural resources in the ecosystem encompasses the three vital pillars of the concept of sustainable development. References Adams, Jan. 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Devezas, Fundação Calouste Gulbenkian.Globalization As Evolutionary Process: Modeling Global Change, Taylor & Francis, 2008 Giddens, Anthony. Runaway world: How Globalization is Reshaping our lives. London: Profile books, 2002 Giles Atkinson, Simon Dietz, Eric Neumayer. Handbook of Sustainable Development, Edward Elgar Publishing, 2007 Great Britain Department of Trade and Industry. Making Globalisation a Force for Good, The Stationery Office, 2004 International Monetary Fund. World Economic Outlook: Globalization opportunities and challenges, Washington, DC, 1997 Lane. Globalization And Politics: Promises And Dangers, Ashgate Publishing, Ltd., 2006 John Blewitt.Understanding Sustainable Development, Earthscan, 2008 Lindert, Peter H, and Jeffrey G, Williamson.”Does Globalization Make the World More Unequal?”,Cambridge: National Bureau of Economic Research,2001 Nations. 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