Globalization Based on Political, Social and Economic Perspective - Report Example

Running Head: GLOBALIZATION BASED ON POLITICAL, SOCIAL AND ECONOMIC PERSPECTIVE Name Course Instructor Date Globalization based on political, social and economic perspective Globalization is a multifaceted and complex phenomenon affecting the world. According to Aitken and Harrison (1999), Globalization is defined as the process of global integration as there is exchange of products, ideas and culture. There are various factors that have assisted in increasing globalization such as communication and transportation. Multinational companies are today main tools of globalization. These companies’ possess’ huge assets and capitals across many countries. Because of the size of these companies as well as their contributions to the national economies, they largely influence decision making process in those nations. Increase in information technology which is as a result of industrial revolution is another major tool of globalization (Aitken and Harrison, 1999). Its aspects with focus on multimedia and internet contribute to the spread of globalization due to their availability, rapidity and easiness. This paper aims in discussing both negatives as well as positive associated with globalization from a social, political and economic perspective. It is quite evident that politics is another important aspect of globalization. Aitken and Harrison (1999) maintain that, political globalization can be defined as the accumulation of power into a single global government. In the past years, many global organizations have evolved and today the United Nations has become most renowned. Traditionally, politics has largely been undertaken within state political systems. State governments have been responsible in maintaining both the economic and security welfare of their citizens. With increased globalization, there has been growth in an integrated international economy as well as political activities are taking place at the international level (Aitken and Harrison 1999). With globalization, politics can take place above nations through political integration such as European Union and through intergovernmental organizations such as World Bank. Globalization has resulted to political activity that transcend through state borders forming alliances forming peace across the globe. According to Cornia (2004), the coming together of a global political community such as the formation of United Nation has been an effective solution for peace. Delegation from each countries under the united nation are involved in developing rules and regulation thus reduction of conflicts. Other than achieving global peace, political globalization has been useful in acting as platform to solve issues such as environment, education and poverty. With the help whether human resources or monetary from other nations, developing nations have had better chance towards alleviating problems of poverty, insecurity, health and education. Nonetheless, the impact of globalization of politics is not always positive. It is quite evident that the condensing of power implies developed nations getting more power to their developing counterparts. Clearly, even if the UN general assembly comprises delegates from all UN member state, it is less powerful compared to the Security Council whose global dominance members are from China, France, UK, US and Russia. According to Cornia (2004), the UN has laws that are global but may not be as global as it is stated. Countries considered as super powers largely influences the opinion as well as actions to be implemented in the Un General Assembly. The globe is a very diverse place with nations root from different governing ways such as democracy, capitalism and communism. According to Cornia (2004), this diversity of the type of governance can result to political tension when the powerful nations try to spread their political ideologies as the case between United States and china. Developing nations on the other hand are struck between powerful nations with immense pressure to submit to one of the ideology. According to Cornia (2004), globalization has both negatively and positively impacted on economic perspective of many nations. Clearly, increased competition in the business environment has been as a result of globalization. Increase in market space and competition has lead to improve and specialization in the division of labor. Further, competition is known to lead to the establishment of economies of scale and scope that normally have salutary impacts on prices and cost which provide strong momentum for economic growth. According to Cornia (2004), competition creates the potential for increased output, production, living standards and higher wages thus improving human standards of living. Also, developing nations are known to benefit greatly through economic globalization through foreign direct investment that not only improve employment rate but also increased export which in turn improve the nation Gross Domestic Product. In addition to benefits of FDI, developing nations are able to gain advantage through the spread of skills and technologies (Cornia 2004). Despite the numerous advantages that increased competition has on the economic perspective, poor people especially those in developing nations bear the burden of being excluded in sharing the economic benefit of globalization. It’s evident that globalization on economy had lead to conflict since most of the beneficiaries of globalization have been richer nations of the OECD (Cimoli and Katz, 2003). Therefore, the net result of globalization on economic has been divergence as opposed to convergence of income globally, with rapid growth economies especially Asian joining richer countries but poor nation from Africa are slipping further behind. Also, globalization as an economic movement has a major impact on both global and national economies. Although this movement has lead to the development of trade blocs, many economic as well as industrial nations have emerged from this movement whereby the rules of this processes have led to collapse of many state economies (Cimoli and Katz, 2003). There is no doubt that while most nations across the globe are enjoying the possibility of economic development, many developing nations are still excluded from the process of economic development. While the low barrier in cross border trade provide multinational companies an advantage of expanding their business, local businesses continue to suffer since they are not able to meet up with what is known as global standard. Products that are produced locally are not able to compete with products from foreign nations in term of quality, price and marketing strategies. It is quite evident that the combination of a complex social structure and advance technology has continued to increase social change being one of the key spheres of impacts of globalization. The social dimension in regard to globalization is defined as the impact of globalization on work as well as life of individuals, societies and families. One of the impacts of globalization on a social perspective is the reduction of poverty among the developing nations. With increase in globalization, developing nations has seen a significant reduction in the proportion of their citizens living below the poverty line. Bhagwati and Srin ivasan, (2002) maintain that, countries such as India and China have seen their poverty levels reduce amicably. Not only does globalization affect economic growth, it also influences labor productivity which largely implies higher wages for people especially in developing countries. Also, globalization has largely assisted in the reduction of within nation income inequality. Bhagwati and Srin ivasan, (2002) maintain that, both FDI and global trade take advantage of low skill labor in developing nations which implies increasing demand for local skilled labor which in turn translates to decrease in income inequality as well as within nation wage dispersion. Finally, globalization leads to increase employment. Both trade and FDI take advantage of developing countries abundance of labor triggering a trend of specialization in local labor intensive activities which also involve expansion of domestic employment (Bhagwati and Srin ivasan, 2002). Despite the positive aspect of globalization on the social perspective, there are various negative impacts involved. Berg and Taylor (2001) asserts that, on the gender aspect, globalization has led to increased participation of women in all major fields in life but it is evident that women still work as casual laborers. Clearly, globalization has increase the accessibility to employment by women but it is still increasing gender inequality based on employment levels. Further, due to influence of social political, cultural and media aspects, crimes against women continue to increase as globalization increase. Berg and Taylor (2001) asserts that initially, every society was consider was considered to have its own unique culture with key focus on morality, language and social norm, with increase usage of internet that has an enormous capability of influencing millions at the same time, the social institution especially family continue to be influenced. A society that strictly follows its style of living without being influenced by the western culture is considered to be uncivilized (Berg and Taylor 2001). In conclusion, globalization is a growing process that will continue to affect various aspects of life both positively and negatively. While globalization can be used as a tool that promotes the economic, social and political system of a country, the negative impacts cannot be ignored. There is need both the government and its citizen to effectively study the possible impacts of globalization on politics, social and economic aspects before any damage take place. For globalization to be more socially, economically and politically sustainable it must effectively contribute to the reduction of poverty and other societal inequalities. By so doing, the aim of globalization will significantly meet the needs of all individuals. References Aitken, B. and A. Harrison (1999), Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela, American Economic Review, vol. 89, pp. 605-18 Berg J. and L. Taylor (2001), External Liberalization, Economic Performance, and Social Policy, in Lance Taylor (ed.), External Liberalization, Economic Performance, and Social Policy, Oxford University Press, Oxford, pp. 11-55 Bhagwati, J. and T.S. Srin ivasan, (2002), “Trade and Poverty in the Poor Countries”, American Economic Review Papers and Proceedings, 92(2): 180-3. Cimoli, M. and Katz, J. (2003), “Structural Reform, Technological Gaps and Economic Development: a Latin American Perspective”, Industrial and Corporate Change, vol.12, pp.387-411. Cornia, G. A. (2004), Trade Liberalization, Foreign Direct Investment and Income Inequality, in Lee, E. and M. Vivarelli (eds.), Understanding Globalization, Employment and Poverty Reduction, Palgrave Macmillan, New York, pp. 169-208 Read More