Look again, Globalization Isnt Bad for the Poor by Joseph S Nye - Essay Example

Globalization (1) Analysis of an Article on Globalization The article, “Look Again, Globalization Isn't Bad for the Poor” by Joseph S. Nye, published in the New York Times (April 13, 2010) was chosen for the present analysis. The author’s interpretation of globalization and his perception of its positive or negative impacts are discussed here. The author describes globalization in an economic context. According to him, globalization has the capacity to ring in economic prosperity and narrow down the divide between the rich and the poor. He rebukes protestors, who are against the World Bank and the International Monetary Fund, and who believe that globalization is a “catastrophe for the poor”. The author interprets globalization as an economic tool, using which, poor countries could raise their standard of living. He says that interdependences across intercontinental distances have been increasing due to reduced costs of communication and transportation. Countries that prevent economic penetration from others will suffer losses and will not be able to experience the benefits of a global economy. The author is largely optimistic about globalization and exemplifies its benefits using examples of countries, such as Malaysia, South Korea, and Thailand, which have benefited from it. Describing how South Korea has managed to multiply its per capita income by 30 times, owing to globalization, the author is positive that globalization will not only help poor countries become richer but will also lessen the gap between the richest and the poorest countries. The economic prosperity brought by globalization also has a flip side to it. In poor countries such as China, while globalization has brought prosperity and wealth to workers, it has left the poor peasants behind, thereby increasing the rich-poor divide within the country. The author, however, dismisses this irony saying that in these cases, poverty had come first and so, the inequality cannot be attributed to globalization. The author believes that this inequality can be overcome with "responsible leadership" along with a "healthy dose of imagination", clubbed with globalization. Overall, this article is a positive rhetoric on globalization and the author has successfully substantiated his arguments using valid examples. (2) Report on a Regional Trade Agreement The regional trade agreement chosen for this report is Mercosur (Mercado Común del Sur/Mercado Comum do Sul/Southern Common Market). This agreement was created on 26 March 1991, when Argentina, Brazil, Paraguay, and Uruguay signed the Treaty of Asunción to create the Southern Common Market. The agreement now encompasses the four Latin American countries along with a fifth member state – Venezuela. The purpose of this trade agreement is to promote free trade among the member countries and enable a fluid movement of goods, workers, and services ("About MERCOSUR"). Mercosur has been very successful in increasing intrabloc trade among its member countries and in reducing tariff and non-tariff barriers. Following this trade agreement, intrabloc trade increased from 9% to 25% of the total exports within eight years (Paiva and Gazel 116). This trade agreement enabled the formation of a common market promoting free trade. The Mercosur member countries also gained in bargaining power to negotiate trade agreements with other countries. Interregional trade among the member countries tripled from the US $ 4.1 billion to the US $ 10.7 billion. All countries in the sub-region experienced increased growth of about 6.1% that was the highest to be recorded in a decade. From the figures released by the World Trade Organization, it can be inferred that the trade agreement not only boosted trade among its members but also was successful in increasing trade with the rest of the world. Since the inception of Mercosur, there has been a 207% rise in trade among member countries and 122% increase in trade with the rest of the world (“Mercosur-demystified”). It is thus an irrefutable fact that Mercosur has been successful in increasing both intra- and inter-regional trade. Mercosur has met several setbacks, both domestic and external, in the course of its run. Growth in intraregional trade was hit due to the Asian financial crisis of 1997, the Argentinean economic crisis of the 2000s, and the depreciation of the Brazilian currency (Paiva and Gazel 115). In spite of these setbacks, which posed a major hurdle in its economic integration on a global scale, it managed to revive free trade and is currently the fourth largest economic bloc (“Mercosur-demystified”). (3) Image Analysis Image Source: http://bangalore.metblogs.com/2007/01/13/globalization-for-tummies/ This paper attempts at analyzing an image that appears to represent globalization. This picture was chosen because it exemplifies globalization by way of global food commodities. The picture is that of an Indian woman sitting in front of a food stand that has products from several global manufacturers such as Lays, Pepsi, Coca-Cola and Cheetos. The food stand is supported with stones and rocks and the place has a very rural feel to it. While the image represents a rural and poor setting, almost all the products on sale belong to American companies. One of the major effects of globalization is that it has enabled brands of almost all commodities ranging from foodstuff to clothing, from all countries across the world, to set-up-shop worldwide. This has sparked the growth of multi-national companies and global brands that are well known and recognized in all parts of the world. American fast food joints, especially McDonald's, Dominos and KFC, are now established in almost every country and food items such as pizzas and hamburgers are well known, even in rural parts of poor countries. Malls all over the world have kiosks that sell both local and global products under one roof, and people have access to films from all over the world. Nothing now belongs to any one country and everything and everyone is part of a global community or more aptly, a "global village". Globalization has not only helped in eliminating the rich-poor divide among countries but has also generated a sense of belonging to people of all cultures wherever they go. A person traveling from the West to the East or vice versa may not feel as "out-of-place" as he would have felt a decade ago. People can easily relate to any place and any person on earth, largely because they all have a lot in common. Education, technology, entertainment, and so on, everything is created keeping global consumerism in mind. Inter-country and inter-continental barriers are now passé, and globalization has been possible because of ease in long-distance traveling and communication, largely owing to technological advancements. In spite of its positive impact, globalization also has a dark side. It raises the problem of global security, both economic and physical. Since economies of the world are now interconnected, a financial crisis in one part of the world has repercussions on other nations as well. Intercontinental missiles diminish the need for local security. There are innumerable other negative aspects of globalization. However, its positive impacts far outweigh the negative ones. (4) Analysis of a Global Organization The World Bank, headquartered in Washington, DC, was chosen for this analysis. Its aim is to achieve a world that is free of poverty. The World Bank offers financial as well technical assistance to developing countries. Its mission is to fight poverty through knowledge and resource sharing, capacity building and encouragement of public and private partnerships. The organization provides interest-free loans and credits and promotes investments in health, infrastructure, education, agriculture, etc (“About Us”). An example of the success of the World Bank comes from the implementation of the Education Sector Implementation program in Mali. The primary education enrollment in Mali increased by 8.5%, and that of the lower secondary, upper secondary and higher education increased by 14.4%, 8%, and 21%, respectively. The gross enrollment rate rose from 56.6% to 72% from 1999–2005 ("Education Sector Expenditure Program"). Grants to buy school supplies were given to about 1,500 schools in the poor communities. Access to education in Mali is the highest among all countries in Sub-Saharan Africa. This was made possible because of the efforts of the World Bank in enabling human and financial resource management. Similar success stories in the education, as well as the health sector, are available from many other developing countries. In spite of its widespread efforts, the Word Bank has met a lot of criticism from economists worldwide, especially for the failure of most of its policies. It is deemed that most countries who received grants and loans from the World Bank are not better off today than they were before receiving the loans. In fact, it is considered that the economic conditions of these countries have deteriorated further. For instance, Nicaragua received World Bank aid of over $637 million from 1965 to 1995. Yet, its per capita gross domestic product reduced by 50%, from $1,752 in 1965 before it received any financial aid, to $875 in 1996 after receiving financial aid from the World Bank (Johnson). Most countries where World Bank policies were implemented and who were receiving financial aids have failed to achieve “sustainable development”. Works Cited “About MERCOSUR.” Mercosur, n.d. 13 Sept. 2011 “About Us”. The World Bank, 29 June 2011. 13 Sept. 2011 “Education Sector Expenditure Program”. Worldbank.org, n.d. 13 Sept. 2011 Johnson, Bryan. “The World Bank and Economic Growth: 50 Years of Failure.” 16 May 1996. 13 Sept. 2011 “Mercosur demystified.”Global Envision, 28 Sep. 2005. 13 Sept. 2011 < http://www.globalenvision.org/library/15/807> Nye, Joeph S. “Look Again, Globalization Isn't Bad for the Poor.” New York Times on the Web 13 Apr. 2000. 13 Sept. 2011 < http://www.nytimes.com/2000/04/13/opinion/13iht-ednye.2.t.html> Paiva, Paulo and Ricardo Gazel. “Mercosur: past, present, and future.” Nova Economica Belo Horizont 13.2 (2003): 116. Web. 13 Sept. 2011 Read More