Is Globalization Boon or Bane - Research Paper Example

Globalization: Boon or Bane? Imagine yourself, with several others, trapped in an island after the luxury ship you were in was struck and filled by waves and waves of water, leaving all of you no alternative but to abandon the ship. You floated for days in the chilling water-- thanks to the piece of wood from the wrecked ship, which you managed to cling on after jumping over board. Finally you, and the rest who were tossed towards the same direction, reached an isolated island. It seemed that this island has not yet been discovered (no trace of other human forms and technology were seen after the group’s effort to locate any). All of you struggle to make use of what is left of your selves from the experience. After all of you have rested and taken their full, you discussed among yourselves the steps you need to take. You have already accepted the fact that rescuers may take days or even months before discovering you, so with all that was left the group struggled to start to live on a remote island. That would be for a while—for sure. Here you are starting a community – away from technology, but with knowledge about it—you wonder if ever you will get by. If you survive, how long will it take you to build a replica of the city that you hope will be “lost” only for a moment. Tragic, it might seem, like a plot in movies shown in big screens, is the picture that such scenario will project. Even more tragic are the emotions accompanying the players involved. This is far easier than what our ancestors have experienced though. Then, they only relied on crude forms for weapon to shield them from their enemy. They had more ferocious animals as neighbors, no concepts of what makes society and culture flourish. To them “survival of the fittest” might best describe their manner of gathering their goods. No political system is yet conceived; the stronger group tends to manipulate the weaker ones. Even more astonishing is how they communicate with each other and how they were able to preserve their culture that became the foundation of a more developed, more complicated yet structured society that we now have. From their time to ours, inevitable movements and changes filled the vacuum (time and space connecting our past and future). We all became an agent of change—affecting and being affected in the process. In man’s search for a better life, needs became more diverse, solutions more complicated. This required the creation of systems aimed at structuring every process and making any inconsistencies more evident and, in effect easier to manage. As the differences in capabilities and abilities of men slowly become more manifested and delineated, social hierarchies were formed, which, in turn, gave rise to the varied sectors of the community and the specific job or responsibilities that each group performs. Now that tasks, roles and responsibilities are properly identified, institutions came next to be established. Since change movement (a by product of change) is inevitable and, different societies at some point interact, it was far from impossible for their culture and system not to be transferred, to some extent. This creates another cycle of creating subsequent systems but now having more intricate characteristics. With the advent of information and technology, more and more of what was once a divided economy has rapidly become a part of a global village -- divided, in the sense that physical demarcation lines separate territories hence certain rules pertinent to importation and exportation are, to some extent, politically governed. In essence whatever negative effects caused by changes in a particular society on its economic environment will not be felt totally by other societies. However, as time passed by human societies, with the help of communication, information and other development in technology have progressively established closer contacts. What once takes a week or more to reach via snail mail may now be contacted at the click of the keyboard or via mobile phones. People from different culture, age group, religious affiliation, educational achievement, political inclination, socio-economic perspectives and other differentiating characteristics, are now at liberty to engage in discussions, in real-time and at their own place creating a connectivity that surpasses time and motion. These transformations (perceived as part of globalization), without doubt, also modified the economic atmosphere of not just one society but the whole world -- thus, the term “global village.” Another aspect of globalization is the availability and transfer of knowledge. At present, even access to a wide rage of knowledge is several times speedier now than five or three decades ago. A child may access pertinent information even faster than the head librarian may do. Information transfer is now measured by mbps (mega bites per second) compared to the number of hours one spends in the library digging through books prior to the advent of cyberspace and networking. Recently, personal identifications which have been reduced to site logs and passes are now being evaluated for possible insertion via microchips on a person’s hand or forehead, which, apparently, will make it safer and impossible to alter. Mass media, considered one of the active agents of globalization in terms of reaching a base for new clients (identification and acceptance of branded items become simpler with the assistance of this medium), and is perceived as a reflection of the society, has likewise affected how society mirrors itself, especially now that surveillance shows have proliferated in the household screens. Michael Amey (2005) stressed the significance of surveillance in the 20th century societies as a means of regulating. To which he said, “In this regulatory function, observation manifests itself in the ubiquitous CCTV, traffic cameras and other surveillance techniques used to monitor and record the activities of ordinary citizens.(21) 1 This considerable increase in surveillance activities, Amey adds, is consistent which the increase in the number of ‘voyeuristic entertainment’2 that are broadcasted on national and international TV. Perhaps, this phenomenon will explain why shows such as the “Big Brother,” “Survival,” and “American Idol” have undeniably shaped the global village that we have been witnessing nowadays. As a result, Hollywood stars, what’s in and what’s new, and the fastest and most innovative have become a part of man’s goal other than survival since they are repeatedly shown on TV. This is a very effective marketing strategy. In the process, subliminal messages are presented through repetition and are unconsciously imbibed by the viewers. This will be discussed further later. Even commodities that are associated with progress and technology multiply in the market faster than the latest technology may come to third world countries. With the development in E-commerce, the availability and marketability of products flourish. Now customers have access to entrepreneurs’ 24/7 value added service. Commodities may be purchased on-line, comments or delivery feedback answered in real-time even during the holy hours of the morning. With globalization the improbable becomes probable. Example of this is the handling of products. Before, goods take a while, even weeks, before it reaches its end users. Today, even right after payment is made, online buyers may download the product (if it is in e-form) immediately. For other tangible products (like credit cards, insurance, et cetera) a third party manager who is responsible in handling client’s concerns is delegate to make products and services easily accessible to clients. This third entity has now been institutionalized to form what we now call as call centers. This is an offshoot of such move or what Mark and Doyle (2002) call as de-localization of social and economic exchanges.3 Banking and retailing, for example, have adopted new technologies that involve people in less face-to-face interaction) resulting to an increase in the interdependence of people and systems are increasingly interdependent.4 A number of favorable consequences brought about by globalization have been identified. But what is it in the process of globalization or its consequences that makes it a hot topic for debates? What are the elements that pull or push globalization? To what extent have these unfavorable effects affected society? What should be done to lessen the negative effects of globalization? Such is a simple explanation of what globalization is all about. Following is a more advanced, more specific changes that occurred with globalization. What is globalization? Is it just a fad that will come and go like the fashion that comes in season? What are its effects? Mark and Doyle define globalization as the label that “is commonly used as a shorthand way of describing the spread and connectedness of production, communication and technologies across the world.”5 It involves the intensification of worldwide social relations, which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa. The World Bank defines globalization as "the growing integration of economies and societies around the world” (1).6 IMF staff described globalization as "a historical process, the result of human innovation and technological progress” (4).7 Its primary benefits are the ability to consume better goods and better products at cheaper prices, to have a better quality of life, according to Bartfield ( )8 Based on these definitions, we construe that globalization, as a process, did not happen overnight, as in it changed the way in which things (in this case economy and technology) were previously handled when a president or prime minister or any person in authority or a particular political system was changed. As a matter of fact the term “global village” coined by media analyst Marshall Mcluhann has been in use since the 1960’s. It originally referred to the “profound cultural shift in a world where radio waves connected all parts of the planet”. [Even] before the wired world we live in, McLuhan [have] analyzed advances in communications technology that disrupted both traditional and modern societies (4).”9 As in our earlier descriptions man’s needs to better himself urged him to discover ways to improve his life. In his search, his constant contact with people around him and from beyond served as his foundation in creating technology – all these are part of the phenomenon we call “globalization.” Conceivably affecting the pull or push of these forces are the following: 1) economic integration, 2) personal contact, 3) political engagement, and 4) technological connectivity (trade and foreign-direct investments.10 What gives globalization a peculiar force, Mark and Doyle conclude, are the following: 1) the speed of communication and exchange, 2) the complexity and size of the networks involved, 3) and the sheer volume of trade, interaction and risk.11 Perhaps it will help to describe the process of globalization in two phases. The first phase, institutional globalization (commercial and the central actors are trading companies). The second phase individual globalization (central actors are individuals). As earlier explained the process of globalization involved individuals (every one of us a matter of fact) and systems created to answer increasing and various needs to establish a better life. Since we assume that every society relies on globalization for economic growth, why then is there a discrepancy in the economic developments of each nation. Why do small countries like Singapore and Hongkong take the top spots in the globalization score?12 Josette Shiner (2008) points to trading as a link to the strong economic growth that these countries are experiencing. She asserts that, “trade liberalization is making a significant contribution to economic growth, poverty reduction, and stability around the world. Economic studies confirm that countries with more open economies engage in increased international trade and have higher growth rates than more closed economies. Among developing countries, those with the greatest engagement in international trade had growth rates three times higher than lesser trading countries in the 1990s. (17)13 To this, Daniel Griswold adds, “(t)rade and globalization can spur political reform by expanding the freedom of people to exercise greater control over their daily lives (39)14 Again, trading as a means of obtaining better goods or payment for services rendered is not a new phenomenon. This has been with us even prior to the discovery of ancient civilization. What differs is that trading in our time is institutionalized hence standards and rules are governed by existing political systems. Secretary of State Condoleezza Rice has emphasized the power of trade and growth to transform societies: “There is perhaps no more important tool for the United States as we think about the spread of stable democracy and liberty than to make use of our economic diplomacy, the benefits of free trade, the benefits of development assistance … .” (p 18)15 Shiner attests that, “trade liberalization is making a significant contribution to economic growth, poverty reduction, and stability around the world. Economic studies confirm that countries with more open economies engage in increased international trade and have higher growth rates than more closed economies. Among developing countries, those with the greatest engagement in international trade had growth rates three times higher than lesser trading countries in the 1990s.”16 Trade alone does not automatically lead to growth, more jobs, and the reduction of poverty though. Good governance, rule of law, strong institutions, sound monetary and macro-economic policies, and a commitment to invest in people--17 practices that should be entrenched as the political system engage in the globalization process. Politics and globalization works hand in hand; without any economic development may never be experienced. For markets to function over time they require a reasonable degree of political stability, a solid legal framework and a significant amount of social capital. With the liberation of trading, however, political engagement becomes more restricted since other governing bodies that were established following the spurt of open trading, such as the World Bank, the European Union and the European Central Bank, involve new constraints and imperatives. Internationalization of financial markets, of technology and of some manufacturing and services bring with them a new set of limitations upon the freedom of action of governments, specifically on the rules on which players in the trading field must follow.18 With trading and globalization, we see how the previously identified elements interplay—economies integrate promoted by constant personal contact, reduced political engagement and increased in technological connectivity. The next thing that we need to answer is how these elements affect the production and marketing of certain products. As we explore this question, we will inevitably touch the two phases of globalization, which were identified earlier. Again, the first one is the globalization of institutions, which I presume have been reflected in the previous presentation on the open trading system. The second is the individual globalization. With globalization, institutions (such as the ones mentioned earlier) direct the flow of commodities (both tangible and non-tangible). However, private companies desiring to increase demand in locations where reach of certain products score low, and address increasing demands in areas where the need of certain products and services are significantly high, outsource production in other countries that provide quality end-products at a comparably lower cost. This not only cut on the overhead cost of the production but serves as a marketing agent of the producer as well. Daniel Pink (2008) argues, “economies are automating and off-shoring routine white-collar work—basic accounting, basic financial analysis, even basic legal services—and this is the same sort of pattern that we saw with routine manufacturing work. Today anything that is routine—that is, anything that can be reduced to a script, to a spec sheet, to a set of rules—this kind of work increasingly is going to disappear from the United States, Canada, Western Europe, and Japan, because that kind of work can get done more cheaply by computers and by people overseas.” (21)19 In this scenario, employment possibilities are created in locations where manufacturing of routine jobs are re-located. Singapore, Japan, and China for example build production plants in countries like the Philippines, Taiwan and other cheaper labor-costing countries. This likewise saves them more in the development of the infrastructure as again, labor cost is much lower than in highly developed countries. Another example, which was discussed in the beginning of this paper, is the creation of call centers or offices where a company’s inbound calls are received, or outbound calls are made. Call centers are increasingly popular in today's society, where many companies have centralized customer service and support functions. Call centers employ many staff in customer service, sales and support functions. By centralizing telephone-based service and support in one location, companies can easily adjust staffing to match call volume. Call centers can be located almost anywhere, allowing companies to take advantage of time zones and cheaper labor rates in different states and countries. Call centers also centralize the technology needs of companies, allowing major telecommunications setups to be installed in a small handful of call centers instead of a number of smaller offices, making upgrades and training easier to complete. In these examples the agents of production as well as marketing a particular commodity seem to have doubling effects in the original source of the commodity and the location where the production is outsourced. The mere the presence of the particular company name in the “outsourcing site” creates awareness in the prospective customers. Repeated exposures to this will eventually trigger curiosity. Curiosity requires knowledge to be sufficed. With knowledge comes the desire to experience the “thing” or the commodity. Sample items distributed in the market and the whole process earlier explained, in essence become effective marketing agent other than the media. Resulting increase in the acceptance of the product will later result in the proliferation of the image in advertisement and, eventually the products significant presence in the local market will be felt by consumers. Every favorable effect has its unfavorable effects. I guess this is how things are in the natural set up of things. Following are the disturbing effects of globalization: 1) growth in illicit transnational activities (9/11 attack); 2) anxiety (thoughts of were all these developments will lead us; (Barfield)20 3) ‘poorer’ peripheral countries dependent on activities in 'central' economies such as the USA; 4) shift in power-- away from nation state and toward multinational corporations; 5) rise and globalization of the 'brand,' 6) Knowledge capitalism (e-books); 7) impact of multinationals on local communities : contract operations, exploitation of cheap labor, unemployment (areas where employment was previously located); and 8) distorted view on childhood (product of 'consumer-media' culture, heavier focus on seeking to condition children and young people to construct their identities around brands, erosion of pubic space by corporate activities, multinational companies can also have significant influence with regard to policy formation in many national governments and in transnational bodies (Mark and Doyle)21. Globalization spur political reform by expanding the freedom of people to exercise greater control over their daily lives. Such freedom, several times have been misused. Shelley Louise (2008) testifies, “the growth in illicit transnational activities has been aided enormously by the great technological advances of the post-World War II era. The rise in commercial airline traffic, improvements in telecommunications (including telephone, fax, and rapid communications through the Internet), and the growth of international trade have facilitated the ready movement of goods and people (43)22…As a result, “[c]rime groups and terrorists have exploited the enormous decline in regulations, the lessened bordercontrols [sic], and the resultant greater freedom, to expand their activities across borders and to new regions of the world.23 A classis example of this is the attack on the World Trade Center on September 11, 2001. Terrorists relied upon the tools and technologies of globalization. They also took advantage of the opportunities created by more open borders due to the political changes. The other negative effects have been explained earlier and will not be discussed in length. conclusion Where will globalization lead us then? At the beginning of this paper, it was made clear that changes, including globalization are an inevitable part of human existence. Whether we like it or not it will be with us --- even longer than we may ever live. The question is how should we view it that it may work for us and not against us? Pink views globalization “being basically about flows: whether the flows of ideas, flows of capital, flows of goods and services, flows of people—all of which have been made easier and have been accelerated because of globalization…We’re better off. In my view, globalization is good, not perfect. And we can’t let perfect be the enemy of good. (20)24 Technology accompanying globalization is an effective tool one may use to challenge the ill effects of globalization. Fill blog sites and chat rooms with discussions on globalization and how it will be maximized. Be more evaluative of what you see and hear on TV and other media. Be an agent of change. References: 1. Amey, Michael . “Living Under the Bell Jar: Surveillance and Resistance in Yevgeny Zamyatin's We.” Critical Survey. (2005): 22-39. p22 2. Ibid. 3. Smith, Mark and Doyle, Michelle Erina (2002). Encylopedia of Informal Education [online] www.Infed.Org. Accessed 20 April 2008 from 4. Ibid. 5. Ibid. 6. February 2006. “The Challenge of Globalization,” E-Journal USA: Global Issues [11] 1. Accessed on 21 April 2008 from , p1. 7. Ibid, p4. 8. February 2006. “A Conversation About Globalization,” E-Journal USA: Global Issues [11] 1. Accessed on 21 April 2008 from , p6. 9. Mark and Doyle, Ibid. 10. Globalisation: Small is beautiful (Oct. 2007). Economist.com. Accessed on 21 April 2008 from http://www.economist.com/research/articlesBySubject/displayStory.cfm?story_id=10015016&subjectID=423172&fsrc=nwl&emailauth=%2528%2525%255F%255F%2523YNO7%2525%255CT%2520%250A 11. Mark and Doyle, Ibid. 12. Globalisation: Small is beautiful, ibid. 13. Shiner Sheeran, Josette. US Transformational Economic Policy: Linking trade, Growth and Development. E-Journal USA: Global Issues [11] 1. Accessed on 21 April 2008 from , p17 14. Griswold, Daniel. Globalization, Human Rights, and Democracy. E-Journal USA: Global Issues [11] 1. Accessed 21 April 2008 from , p39. 15. Shiner, Ibid, p18. 16. Ibid, p17 17. Ibid, p18. 18. Mark and Doyle, Ibid. 19. Paul, Malamud (2006) Changing Workplace: An Interview With Daniel Pink. E-Journal USA: Global Issues [11] 1. Accessed on 21 April 2008 from , p21. 20. A Conversation About Globalization, Ibid, p10. 21. Mark and Doyle, Ibid. 22. Shelley, Louise. The Globalization of Crime and Terrorism. E-Journal USA: Global Issues [11] 1. Accessed on 21 April 2008 from , p43. 23. Ibid, p44. 24. Paul, Malamud (2006) Changing Workplace: An Interview With Daniel Pink. Ibid, p20. Read More