Globalisation: Transforming the Nation-State - Essay Example

Globalisation: Transforming the Nation Globalisation is the of much debate worldwide. Its impact on the economic, social, cultural andtechnological aspects of nations are significant and varied. Aside from its impact on nations, it also affects the quality of life of individuals worldwide. Since the rise of the nation-states in the 19th century and the numerous conflicts that have happened since, perhaps the advent of globalisation poses a completely different challenge. Many feared that nation-states will be a thing of the past, and that these would be emasculated as their national sovereignty is gradually diminished by the new order of things as brought about by globalisation. I believe that nation-states would continue to exist, but globalisation would have such overwhelming effects on all nations that their transformation is inevitable. This paper aims to point out the transformations that nation-states will undergo, and the causal factors that made these transformations in the nation-state happen. The International Forum on Globalisation defines it as, "the present worldwide drive toward a globalise economic system dominated by supranational corporate trade and banking institutions that are not accountable to democratic processes or national governments." Giddens (2001) said globalisation is "the growing interdependence between different people, regions and countries in the world as social and economic relationships come to stretch worldwide". According to Rosenberg (2000) defines "The term 'globalisation' after all, is at first sight merely a descriptive category, denoting either the geographical extension of social processes or possibly, as in Giddens' definition, 'the intensification of worldwide social relations'." According to the (World Bank Brief 2000) globalisation increased in pace in the last three decades, with the leaps in information technology, transportation and global communications. Among the technological innovations are telecommunications, the Internet and faster world travel, just to name a few. These technological improvements made it possible for people to transport goods, services and knowledge, faster, farther, safer, and more reliably. Governments have also made substantial changes in their global outlook and relations, becoming more open in their policies that are conducive to closer international economic cooperation. Proponents of globalisation emphasize that its goal is to reduce poverty worldwide. They stress that in spite of the world's population increasing from 1.8 billion to 6.0 billion, and with the constant eruption of political and armed conflicts, the real average income of every living person today is five times more than it was at the beginning of the century. Despite claims by advocates of globalisation, it cannot be denied that there are also vulnerabilities, which raise concern among both developed, and developing countries. If there is global reduction of poverty, it has also produced problems for its players. (Giddens 2001) stated that, "Globalisation is not an 'out there' phenomenon, as if some external forces are at work. September 11 showed that it's an 'in here' phenomenon". He explained that globalisation is not a product of external factors, but also occurs within nations. "With interdependence comes vulnerability, a shift in our institutions, our emotions, our anxiety", he stressed (Giddens 2001). The International Forum on Globalization defines it as, "the present worldwide drive toward a globalise economic system dominated by supranational corporate trade and banking institutions that are not accountable to democratic processes or national governments." Erasmus (1998) stated that the nation-state is the most "endangered species in the world" because of the pressures enacted by globalisation and virtualisation. These two forces are redrawing the borders of the nation-state, divesting it of its institutional power. He pointed out that the nation state has three sources of power: mind, money and muscle. The cross-border capabilities of media and the Internet, according to Erasmus, is able to flow unhindered across geopolitical boundaries very much "like the air we breath." He mentioned that no one can control the cross-border flow of information without compromising their ability to compete globally. In order to gain economic power, the state has to divest itself of control of its information flows. In effect, the state also has to relinquish its control over the mindset of its people. The removal of trade barriers, being a requisite in the global economy, also means that products can be manufactured from any location on the globe. Work can thus be offered anywhere as a result of the virtualisation of work, services and knowledge. Countries resort to competition in attracting investments for the establishment of production facilities or the acquisition of high-skilled and knowledge-based workers. This competition among countries results in the standardization of labour, tax and trade policies. Countries can no longer afford to go by their own but must meet standards of conformity to remain competitive, or putting it in another way, to become palatable for investors. Erasmus also emphasized that the countries are becoming increasingly on global capital markets. This allows financially powerful countries to own production and market shares in other states. With countries investing on other countries, and with the increasingly complex and intertwined trade relationships among nations, it has thus become disadvantageous for many countries to enter into conflict with other nations which are either existing or potential business partners. The power of nation-states are fast becoming irrelevant as globalisation forces begin to increase their influences. Many countries were able to build up power economies and their leader have exerted strong government control over businesses in the past. However, the pervasive and dominant influences of globalisation has given leaders, particularly those in Asia, a very painful experience as they lose domestic influence and power. Globalisation is larger than any national leader or politician and the role of international organizations like the World Bank, International Monetary Fund, Asian Development Bank and Association of Southeast Asian Nations, to name a few, are becoming larger and increasingly influential. Kenichi Ohmae predicted in his book The decline of the nation state, that countries will rely less on national power and more on international partnerships in trade and economic zones (Asia Pacific Management News 1998). Another vulnerability revealed by globalisation is the transformation of traditional societies into more modernised and even westernised communities. Giddens (2001) stated that tradition in early modernity "remained central", involving collective memory, ritual and "formulaic truth", which all contribute to its continued existence and protection. These traditions are continuously repeated by society as a system for controlling time. It was tradition which allowed for the establishment of individual and collective identities as modernization continued to run its course. With tradition's control over time, tradition also controls space. He pointed out that globalisation dislocates or "disembeds" tradition and its institutions. He contended that globalisation does not come from a known centre or point of origin, but comes from different directions. He calls globalisation as a peculiarly post-modern phenomenon, with effects and ramifications that are always present. According to Krause (in Riggs, F. 2000), "trade liberalization destroys rural societies as well as the environment, weakens the labour movement, and threatens cultural diversity and self-determination....". This suggests that rural societies have to cope with the advancements and demands brought about by a globalise economy and the corresponding changes will alter their essence. Likewise, the environment will also be altered as new values and attitudes will be introduced to meet the demand of free trade. Environments, both social and physical will also change, as an integration of ideas, values and infrastructure will be adopted in order to compete in a global market. Krause (in Riggs, F. 2000) added that, "technology is providing a communications forum for organizations and individuals that are generally ignored -- or stereotyped in negative terms -- by the corporate-controlled mainstream media. By giving these organizations a voice, technology is increasing the likelihood that their concerns will be acknowledged, and -- hopefully -- addressed." This means that the technology brought about by trade liberalization also gives formerly marginalized sections of the population a degree of empowerment, to be heard and counted. Communications technology provides the opportunity for their voices and concerns to be heard and given due attention. Dr. Louay M. Safi, Executive Director, ISNA Leadership Development Center (ILDC), Plainfield, Indiana, pointed out that globalisation has brought new challenges to the Muslim world. Stating that globalisation served mainly as a vehicle for the expansion of western ideas into non-western cultures, it has challenged traditional culture. The changes felt by non-western societies were mainly brought about by technology and organization, which he said was partly positive. He enumerated that the positive effects of globalisation on Muslim culture were the appreciation of the value of education, organizational discipline and scientific research. However, he added that, "one can see many negative impacts, including the erosion of the traditional make-up of family, the new evolving of promiscuity and illicit behaviour, the increase in the crime-rate, the increase in the use of narcotics, and other social ills. These are real problems, not only for Muslims, but for humanity at-large". Thus, Safi raises the same concerns as Giddens (2001), "The downside of globalisation is therefore a source of real challenge for Islam and Muslims who are called upon to restore morality that lies at the centre of any civilization" (Safi 1997). Opponents of globalisation argue that the exposure of traditional societies and cultures to western values which are perceived to be more liberal and promiscuous tend to undermine and destroy their moral foundations. Religious nationalism has become active these recent decades, connecting religious convictions with the population's political and economic destiny. Many nationalist movements have incorporated the revival of traditionalist religious doctrines in their national identity and leadership. Among the strongest forces in religiously influenced social movements is Islamic nationalism which has influenced both national and international politics. The encroachment of western influence into the Muslim world during the 19th century spurred movements seeking the restoration of Islam to its original and pure form. Fundamentalists have gained strong footholds in the past two decades, spreading their influence over the Middle East, North Africa and South Asia. Islamic fundamentalism is a product of the resistance against the West, and the desire to re-establish traditional doctrines, cultures and ideas (Giddens et al 2003). There are claims that globalisation produces inequalities wherein some countries benefit while excluding other countries from reaping its benefits. Others contend that there has been too much globalisation that its effects have become detrimental for developing countries. In labour, globalisation critics fear that traditional institutions such a country's workforce can be displaced or wholly marginalized by the influx of migrant workers. Marx's Communist Manifesto lends support to globalisation, describing it as, "a cosmopolitan character to production and consumption in every country... In place of the old local and national seclusion and self-sufficiency, we have intercourse in every direction, universal interdependence of nations...". Marx described the phenomenon of homogenisation by writing, "The intellectual creations of individual nations become common property. National one-sidedness and narrow-mindedness become more and more impossible, and from the numerous national and local literatures there arises a world literature" (Ornvedt 2001). This statement contends that globalisation is the instrument, which will remove mercantilism and feudalism, thereby giving people from different nations the same opportunities for self-realization in all aspects of human life. However, concerns have been raised regarding migration of workers because of globalisation. Vulnerabilities in labour were identified by both developing and developed countries. Globalisation critics claim that worker migration can lead to their exploitation. Likewise, developing countries fear that cheap migrant labourers entering industrialized economies raises will displace local labour. Low-wage workers, as the contention goes, will inevitably replace workers in high-paying jobs. It is also feared that the demand for less-skilled workers will also plummet since labour from low-wage economies may also be highly skilled and competent to do multiple tasks (IMF Brief 2000). In 2003, BT announced its plan to open two call centres in India which sparked fears among labour unions that jobs will be lost in the north of England. The move, which would create 2,000 new jobs in Delhi and Bangalore, was evidently initiated to take advantage of the lower wages among Indian workers, without necessarily compromising the quality and competence in the English language. Despite assurances by management authorities that no job displacements will happen, unions protested what they called the "exporting" of badly needed jobs". Objections also arise from host countries that migrants would exploit and abuse the services being provided by their welfare state. They do not only become competitors for such welfare services, but also limit the access to such services, which were originally intended, for the local populations. In effect, nations have ceased having defined borders. They have become transnational states able to fluidly cross borders in the name of global trade, and very much like the transnational corporations which represent them. Talbot Parson stated that four functions must be satisfied to maintain a social system: 1) Adaptation which is mainly an economic function, is the relationship between a system and its environment; 2) Goal attainment is primarily a function of politics and its players; 3) Integration refers to the "adjustment of conflict" through application of law; and, 4) Latency, which is a functioning dealing with core values and culture (Bharadwaj 1987). According to (Bharadwaj 1987), although Parson's model is largely insufficient to explain globalisation, it helps to explain the tendency of economics to acquire primacy over culture and politics. Parson places social elements such as money, markets, military and consumerism in the centre of a global society. He states, "The ideology of globalisation is trying to superimpose onto the existing institution of a society a radically new set of rules and ideas" (Bharadwaj 1987). He points out that under globalisation, the role of adaptation is a function of money; goal attainment becomes the function of markets; Latency is the function of homogenisation, especially in terms of consumption patterns; and integration is the prime responsibility of the military. Advancements in communications and information technology have increased the pace of globalisation in the past decade. Globalisation is closely connected to post-modernity and Americanisation. It is characterized by an "image industry, in which desires are created over needs" (Gibbins and Reimer 1999). They explained that media is responsible for image building with which traditional societies are continuously exposed. Media exposure tends to homogenise the aspirations of the buying public. However, media does not have the ability to democratise the ability to purchase. Thus, those who are unable to purchase resort to violent means to acquire their desired goods. The Internet, television and other media are powerful contributors to integration through globalisation. The global market economy as a whole coupled with the widespread access and influence of information technology and mass media have led to an acceleration of cultural homogenisation. Both information technology and mass media have allowed millions of individuals to access knowledge, information and services at the blink of an eye. This integration or homogenisation through information technology has several impacts on cultures and societies. (Fotopoulos 1997) wrote, "the establishment of the market economy implied sweeping aside traditional cultures and values. This process was accelerated in the twentieth century with the spreading all over the world of the market economy and its offspring the growth economy" He also describes convergence, "today, there is an intensive process of culture homogenisation at work, which not only rules out any directionality towards more complexity, but in effect is making culture simpler, with cities becoming more and more alike, people all over the world listening to the same music, watching the same soap operas on TV, buying the same brands of consumer goods, etc." (Fotopoulos 1997). Media promotes convergence, developing more common characteristics among societies at the expense of losing their own unique cultural identities. Media has an overwhelming influence on people, and this is evident as individual tastes and preferences, perceptions and ideas, increasingly become similar among individuals of different countries. An advantage of globalization is the access of people from all corners of the globe to goods and services from other countries. However, this concept of free trade is being opposed by protectionist attitudes for several reasons. First, jobs will be lost in old indutrial regions since mature industries would become more service-oriented. These mature industries would demand more highly-skilled jobs rather than low-skilled ones. This would thus marginalize workers whose skills level catered to the old requirments of mature industries, and they would be eventually displaced by more highly-skilled workers from other countries. It also threatens infant industries which need supports to get on their feet, grow and expand to compete in both the domestic and inetrnational markets. Similarly, low-skilled workers will not be able to adjust to the demands of new industries, especially in relation to the use and application of new technologies. However, globalization advocates contend that infant industries would benefit from a global economy, since it would generate new jobs in older industrial regions and create new opportunities in infant industries (Polyarchy 2003). This is supported by the IMF contention that globalization makes it easier for countries to raise their standard of living, quality of life and incomes by gaining access to investments, new technologies and lower tarrifs or import prices (IMF Brief 2000). In fact, in 2003 Japanese car manufacturer Toyota created 1,000 new jobs in its Derby plant, employing a total of cose to 5,000 workers in the facility. This expansion in the work force was the result of a move to 24 hour production. Science and technology have also entered a form of globalisation called internationalisation. The IMF states that investments, labor and advances in technology should be accumulated to improve the living standards in poor countries. These are precisely the aspects being espoused by globalization, and if theory were to be applied, the accumulation of these factors would result in the development and improvement in the quality of life in underdeveloped and developing nations (IMF Brief 2000). Cantwell (1991, 1995) explained that multinational firms utilized international research and development strategies to establish interfirm and intrafirm networks so that firm-specific knowledge and technological capabilities would be strengthened. This role is expected to take on increasing importance in the coming years. It was argued that in order form firm-specific technological capabilities to be acquired, accumulated and maintained, contacts with external sources of expertise from both the home and foreign economies should be built up. Because technologies are difficult to transfer through conventional channels, these external contacts should either be physically present or be support by an organization mechanism. The local infrastructure may be concentrated in a specific region. Thus, these regional sites become hubs or centers for specific technological competencies and they attract investments from multinational firms in research and development, not to mention production. Firms also have the option of establishing production facilities in foreign centers of innovation so that they may access technological developments which are relevant to firms in that region but may also be of complementary significance to their operations. These foreign innovations can then by used by the firm to expand its own pathway in technological development. This results in the replacement of intra-industry trade by intra-industry production. This will also result in the most innovative firms expanding their research and production in all the significant locations for technological activity. This tendency to conduct offshore research and development would eventually result to outward flows of technology to other industrial economies. The trend towards cross-national investments in research and development and other international cooperative efforts in innovation acquisition witness the growing focus on specific technological activities or competencies. This means that firms begin to divest themselves of seemingly unrelated business concerns and begin to concentrate on their core competencies. They also give more emphasis on the international dispersion of these competencies. This is why there are firms which actively seek to establish "centers of excellence" in various locations all over the world, even if these firms specialize on specific products. New products can be developed and manufactured through the formation of strategic alliances between firms. These firms would combine their core competencies and other technological know how and skills. These strategic alliances would result in interfirm learning or accumulation of new knowledge and innovations. It also has a homogenizing effect in the sense that the participating firms would tend to have the same level of technological capabilities. Thus, the tendency of research and development is to go to regional and national economies that have the capability to nurture specific technology-based capabilities. This shows that globalisation and the need for national specialization are complementary to each other and are not conflicting paradigms. Localised capabilities are also a response to demand and supply factors and history. Industrialised countries are all undergoing rapid and fundamental changes. With the revolutionary developments in information technology and the deregulation and liberalisation of markets, globalisation has become the driving force for firms and markets. Globalisation is the new arena for the world's economy. According to (Giddens 2001), globalisation is "the growing interdependence between different people, regions and countries in the world as social and economic relationships come to stretch worldwide". Internationalisation describes the increasing border-crossing of economic activities. It is an important component of a global economy. Although lagging behind, technological activities are also following globalisation trends. The internationalisation of technology means that the inventions, the inventors and the owners of the inventions frequently cross borders. Technology generated or invented in one country can be utilized for production purposes in another country. High-skilled workers such as engineers and scientists who were raised and educated in one country can be employed in other countries. Firms based in a country ca establish research and development linkages and alliances globally. Internationalisation has brought about several phenomena among which is the ownership of technology. A technology or invention may be developed or produced in one country but owned by a firm in another country. Another phenomenon is the international generation of knowledge wherein various research and development facilities located in different countries cooperate in the generation of knowledge. Ownership of an invention in one country by a firm located in another is a common occurrence in contemporary times. One of the reasons for this is it came about as an accident. Through increasing cross-border mergers and acquisitions of companies. Thus, the acquiring firm located in a country like the United States, instantly acquires the assets including the technologies of the acquired or merged firm. This phenomenon does not necessarily follow a research or economic strategy. It just happened that a research facility owned by a foreign company, transfers ownership to the firm which acquires it through merger or acquisition. Firms can also own technologies abroad by having research facilities in foreign countries. This is borne out of the will of firms to adapt their products to local markets. It also allows them to provide technical support to local subsidiaries. Having research and development laboratories abroad also enables them to monitor developments in technology in those regions. It gives firms the ability to tap foreign technology, through the penetration of local research networks at lower cost. It also allows the form to provide special technology which gives the recipient country comparative advantage while complementing the core technologies of the investing firm. By tapping into foreign research networks and acquiring complementing technology from other countries, firms put into effect a form of technology transfer flowing from the recipient country into the investing firm. New inventions are also produced through the joint cooperation or joint venture of researchers based in different countries. It is upheld that knowledge diffuses across borders and serves the public good. This type of cross-border cooperation is made possible by the reduced costs of communications which makes networking more feasible. The trend towards specialisation by researchers also increases the benefits derived from networking. International cooperation allows for the convergence of knowledge from various sources which results in the generation of new inventions. This is more so since the increasing trend towards specialisation means that different countries have specific research expertise and it requires the coming together of various experts and discipline to generate new technologies. Cross-border cooperation also contributes to the increase in innovation activities among local research facilities. There are numerous reasons for advocating globalisation. The foremost contention in its favour is that it had been in existence and had been continually applied by humankind for the past 5,000 years. Its rapid acceleration in recent decades is merely a result of the innovations and advancements in science and technology. Advocates contend that whether it be made part of international and national policies, globalisation would continue, determining its own pace and direction. Critics contend that globalisation destroys traditional societies and brings about more conflicts as gaps are widened between the developed and developing countries. Strong opposition to globalisation and the deliberate national movements towards fundamentalism especially in the Muslim world, have become evident and increasingly numerous as the years pass. National identity, religious influence and cultural purity are threatened as these abstract and intangible elements which define a nation's character and its people are slowly being diluted through homogenisation. Though there may be a tendency of homogeneity in terms of information, preferences and consumer patterns, inequalities within the global system also creates divergences. It merely benefits those who have the financial leverage and further widens the gap between rich and poor nations. Regardless of whether one is pro- or anti-globalisation, the paramount undertaking is to ensure that its impacts would benefit both sides of the table, and safeguard the welfare and security of all nations regardless of their economic condition. The vision of a global village has already become a reality, and the paramount concern of all countries today is to ensure that globalisation will be for the benefit of all and not a tool for exploitation and manipulation. A result of globalisation is the transformation, but not the end of the nation-state. It has ceased to be defined by its geopolitical borders, and instead has become transnational in character. The nation-state's well-being for the present and in the future is deeply entwined with those of other nation-states. It had no recourse but to relinquish its original powers to gain economic power and ensure its survival. Okuda, Michael, and Denise Okuda. Star Trek Chronology: The History of the Future. New York: Pocket, 1993. References: Bharadwaj, A. Understanding the Globalisation Mind Game. 1987. http://www.idsa-india.org/SAARCHIVES/SA200303/JUL-SEP01.htm Erasmus, D. The Economy of Ideas #17: The End of the Nationstate. 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