How Has Globalization Affected Australian Society - Literature review Example

How has Globalization affected Australian society? The continual expansion of corporations pursuing revenues across the global community by purchasing components and labor at low costs and selling in maximized economic locations have had a profound impact on political and cultural paradigms in Australia. By reducing trade barriers in the 1980’s, the Australian government positively affected employment by opening up the economy to globalization ideals. Decreased tariffs opened the Australian economy to international competition and influenced companies’ decisions regarding where to invest. This increase of production has amplified the types and numbers of existing jobs thus changed the everyday lives of the average citizen. The term globalization is a complex concept to grasp and cannot be explained simply by the reduction of tariffs as it applies to the economy. There are many in Australia who rightly suggest that the relatively recent upturn in the economy is not entirely a direct result from globalization efforts but there is no doubt in anyone’s mind that globalization has helped to build national economies for thousands of years. The politics of globalization has also acted to shape cultures and, as national leaderships intermix for economic gain, the negative impacts associated with societies melding together are generally feared to be extensive by citizens of most industrialized countries. Globalization has been described as inevitable and has various political, economic and social meanings and implications. Following a definition of the complex conception of globalization, this discussion will examine its social and political influences specific to Australia. The practice of national interactions has been in use for many years in a more limited way by such societies as the Roman and British Empires. These historical interludes of ‘globalization’ involved cultural oppression and economic exploitation of one nation by an aggressor. The term globalization, the concept of a global civil society consisting of treaties between states and non-governmental organizations, had its beginnings in the 1960’s and began to be widely used after the Asian economic crisis of 1997. In full-page advertisements placed by Merrill Lynch in the major American newspapers in October 1998, announced the headline in the advertisement, ‘The World is 10 Years Old. It was born when the Wall fell in 1989.’ “It’s no surprise that the world’s youngest economy, the global economy, is still finding its bearings. By the same token; there should be no surprise that the debate about the meaning and effects of globalization is also still finding its way.” (Friedman, 1999, p. 13). Globalization has blossomed from expanded global communications creating an interdependent and cultural exchange as well as economic exchange between previously isolated societies. The significant increases of international trade have established a vehicle wherein broad cultural exchanges have taken place, greatly increasing the impact of global issues at the local scale, or more simply stated, “a set of processes which point to a new historical phase, which have a global reach” (Camilleri, 1997). The term is often used unclearly when attempting to describe its specific impacts but “can be used meaningfully to refer to a process whereby social, economic, political and cultural relationships and activities become increasingly global in their dimensions” (Bessant & Watts, 2002, pp. 278-79). The term globalization is normally referenced to and explained by political leaders, not yet generally used by the public. In 1999, Australian Prime Minister John Howard spoke about the concept of globalization to a group of Japanese business representatives. “Economies wishing to grow and provide more and better jobs and higher living standards must become more flexible and competitive globally,” he said. “We do not have the option of dropping out of the world economy” (cited in Howard, 1999). As the Australian government has no official governmental policy regarding globalization, this statement suffices to satisfy the proponents of globalization. Howard also made concessions of the concept but still supports it. “Globalization, however, is creating deep social pain and political costs as sensitive sectors are opened up to outside competition and go through difficult adjustments,” he said. “The human costs are hurtful and governments have a responsibility to help people through the process. Calls for protection are understandable but they are self-defeating” (Howard, 1999). The principle of globalization serves in Australia’s national policy only as a political demonstration of similar economic theories trumpeting free markets and free trade. “Globalization is simply an extension of the tendency throughout human history towards increasing specialization and trade” (Howard, 2000). Governments must deal with political concerns when expanding economic globalization treaties and policies such as trade restrictions to countries that have proven to be oppressive regimes. The implications are far reaching as nations could decide to impose trade embargos say, U.S. sanctions on Cuba for over 40 years, because of political concerns that have nothing to do with the economy or trade. Who is to set the standard for global behavior and can this be the way nations form alliances and wage war in the future? World trade has great political implications that are difficult to forecast thus the absence of an Australian formal policy on globalization is troubling. Another political issue rises from the fact that Australia has no legal stipulations that require state governments to consult with the Parliament before signing trade treaties. However, a treaty is not lawfully binding until legislation is ratified by Parliament. “Despite this schema, concerns have been raised in the community and some quarters of the Parliament that the way in which Australian governments enter into treaties enables them to evade accountability to Parliament” (Stephen, 1995, pp. 22-23). These assertions become all the more urgent because of the increasing impact that treaties can have upon the nations’ cultural interactions. Countries such as Australia and the U.S., whose citizenship is economically stable and have a small population proportionate to its land mass, are more adversely affected by globalization. Economic affluence and political stability have made both countries an appealing choice to live for those suffering from poverty and oppression. The relatively elevated standard of living in Australia also provides a profitable source for smuggling activities in and out of the country. Unlike the United States, Australia has a small population of about 20 million people or about 6.5 people per square mile. The U.S., by contrast, with all its wide open spaces, has 76 persons per square mile (Rosenberg, 2005). Europeans that settled in Australia have always felt they were geographically and culturally separate from the rest of the world and now therefore embrace globalization but with cultural reservations. “Some Australians have lamented the fact that the feeling of apartness from other cultures in its region has led to missed opportunities for creating a more prosperous and secure region. However, in terms of those who feel threatened by globalization, Australia’s early history of introversion and rejection of neighboring cultures may be significant in providing those who feel themselves threatened and disadvantaged by the cultural changes that accompany globalization with ready made traditions of nostalgia and cultural isolationism” (Worthington, 2001). Another form of cultural globalization is in the area of communications, the accelerant of the globalization phenomenon. Many differing world cultures are as close as a personal computer or television which acts to bring together, to globalize, the world’s peoples and cultures. This social form of globalization has acted to somewhat quell the fears regarding the implications of interdependence and eases the transition to a worldwide economic and political interactions. Over the past decade, Australian social policy papers have made casual references to the changed economic circumstances resulting from globalization, but “they have not formulated any strategic policy response” (Keating, 1994). This lack of attention may be directly attributed to the non-existence of a substantive domestic social policy program that addresses globalization effects. As welfare state analysts such as Ramesh Mishra have noted, “it is not the economic facts about globalization but their political implications that may have prevented explicit policy debates about the costs of globalization and the social policy adjustments that might be required to smooth the transition into the global economy” (1999, p. 6). While the term globalization is relatively new, the phenomenon it describes is not. Proponents of globalization say that it assists developing nations to quickly ‘get up to speed’ to more industrialized nations through technological advances and increased employment. Critics of globalization say that it undermines national autonomy and allows affluent countries to transport domestic jobs overseas where labor for cost are low. Globalization is a significant and diverse economic, cultural and political issue of major significance to Australia, as it is to all nations of the world. Works Cited Bessant, J. & Watts, R. Sociology Australia. Sydney: Allen & Unwin, 2002. Camilleri, J. “What is Globalization?” Alternatives to Globalization: An Asia-Pacific Perspective Community Aid Abroad. J. Wiseman (Ed.). Fitzroy, 1997. Friedman, Thomas. The Lexus and the Olive Tree. London: Harper Collins, 1999. Howard, John [Prime Minister]. Address by the Hon. John Howard MP. [lunch hosted by Japanese Business Organizations]. Tokyo: July 6, 1999. Howard, John [Prime Minister]. Address at the World Economic Forum. Melbourne, Victoria: September 11, 2000. Keating, Paul. Working Nation: White Paper on Employment and Growth. Canberra: AGPS, 1994. Mishra, Ramesh. Globalisation and the Welfare State. Cheltenham: Edward Elgar, 1999. Rosenberg, Matt. “Population Density.” About Geography. (July 6, 2005). April 2, 2006 Stephen, N. “The Expansion of International Law: Sovereignty and External Affairs.” Quadrant. Vol. 39, I. 313, (January, 1995). Worthington, Glenn. “Globalisation: Perceptions and Threats to National Government in Australia.” Parliamentary Library. Parliament of Australia, (September 27, 2001). April 2, 2006 Read More