What Role Should Government Play In a Globalised World - Essay Example

What role should government play in a globalised world? Contents Contents 2 Introduction 3 Era of Globalization and Changing Role of Government in China 4 Conclusion 7 References 9 Introduction The world in the era of globalization has emerged out as a global village with close networks of trade and other activities happening between different nations at electronic speeds. Economic and social structures of different regions has undergone far flung changes owing to the opening up of the economic system leading to large scale incoming of foreign investments from developed nations. Similarly the technological and manufacturing paradigm along with labor relation policies has undergone significant changes in the globalised platform. The government bodies and authorities in different countries herein are required to become highly responsive to the changes occurring in the economic, social and technological systems to help sustain its stand in the world markets. Government bodies and institutions in the light of the changing economic, social and technological systems are required to design and formulate new polices that would in turn render greater flexibility to the existing system to create sustainable changes in the globalised macro environment. Thus in situations like global financial or economic crisis the government bodies are required to bring forth a regulatory mechanism pertaining to the financial institutions operating in the country. Similarly existing trade and infrastructural mechanisms must be revised that would in turn maximize the potential of the social and economic systems of the country thereby augmenting its competitive position in the world economy. Deregulation, privatization, focus on research and development and process and technological innovation are some of the key words that earn relation to the changing policy framework of the government bodies of the regions (Tiirmaa-Klaar, n.d., p.165-168; Deng and Wang, 2005, p.132-134). Era of Globalization and Changing Role of Government in China The paper to understand and reflect on the changing role of government in the era of globalization focuses specially on the changing role of the political and governing system in China. The economic system of China in the light of globalization has undergone far flung changes owing to which the closed and isolated economic structure has radically transformed into an open and liberalized one. This openness of the economic system of China has contributed in assisting China to become an active player in the global economic activities through which the country can focus on gaining potential development. Radical transformation in regions like China gains a possibility because of the responsive and flexible role played by the government of the region in the manner of changing the policy structures. The new policies brought about by the government of China strictly focus on the parameters of modernization and economic development. Government of China has come to understood that only through the aspects of innovation in processes and structures, modernization of existing activities and systems and also through enhancement of economic potential of the region that the country can gain economic and social prosperity in the long run (Guthrie, 2012, p.103). The Government of China to help boost confidence in their social and economic restructuring renders a forecasting model wherein by the year 2020 the country is held to gain strategic and sustainable growth opportunities. To attain the same the government of the region strongly focuses on bring about policy changes contributing a change based on the socialist ideology, focusing of introducing large scale research and development functions related to the manufacturing and technological framework and also related to the development of the living, educational and occupational standards of the people. Further ascension of China to gain a membership to the World Trade Organization contributes in the development of foreign policies such that they focus on enhanced modernization and gaining a spontaneous inflow of foreign investments. This fact further strengthens the domain of the country in the globalised platform. Thus it is quite significant to find that a how a communist region like China has truly understood the advantages that would be gained through the aspects of modernization and innovation in the emerging era of globalization (Chari, 2007, p.143-144). The Chinese government has incorporated major shifts and transformation owing to the impacts rendered by the globalization climate. It is found that the government of China has largely incorporated the system of specialization pertaining to assigning of roles and functions such that the potential of major non-government bodies along with industrial and commercial associations leading to effective accomplishment of desired functions. Along with the specialization of roles and responsibilities in accomplishment of tasks in an efficient fashion the wake of globalization also transformed the concept of ‘fairness and equity’. In the pre-globalization period the concept of equity and fairness was limited to the means of generating equal and fair salary for all people working in same levels in state run corporations. With the opening up of the economic system the concept of equity and fairness has gained new stands in the Chinese region where monitoring of such has shifted from the hands of state run corporations to that of the government. Owing to such shift the focus of ‘equity and fairness’ has augmented from only rendering an equitable salary and wage to the gaining of equitable opportunities for one and all. Thus the government of China in a globalised climate strongly works in rendering equitable and fair educational and development opportunities for the people in that also assisting the development and enhancement of potential of the disabled people in the society. Moreover the labor relations climate of China is also undergoing changes owing to the formulation of rules and policies to enhance the pay structure of the individuals depending on their performance levels. Thus the government of the day adequately feels the responsibilities for developing the educational and skill potential of the people in the society aimed for societal and economic development as a whole. Trade and commercial policies have also been revisited in the region such that the Chinese corporations are required to furnish their assets and stock valuations as distinguished from costs related to social and other activities in the regional and national stock exchanges (Dator, Pratt and Seo, 2006, p.252-254). Similarly on the trade and commercial front the government of the region is working further for the opening up and creation of Special Economic Frontiers that would help the country gain large amount of investment and employment opportunities. Again on the industrial front the government worked to the development of infrastructural and service sector enterprises along with working for the development of manufacturing companies encompassing significant technology and export oriented companies. For enhancing the potential of the manufacturing and services sector the government focused on drawing significant amount of foreign direct investments in the related sectors thereby aiming to gain needed productivity (Wu, 2006, p.221). More specifically reflecting on the Shanghai province of China it is found that the local municipal authorities strongly focused on the development of the tertiary sector. Thus new type of business and occupational opportunities emerged into the scene relating to industries like tourism, infrastructure, information technology companies and financial and other related sectors. Relating to the paradigm of urban development the local municipal authorities focused on generating leases pertaining to land resources and thereby using the revenue gained from such in the creation of mega projects thereby redefining the urban landscape. With the due support of research and development functions and technological innovations the industrial landscape of the country saw the growth of information technology sector in China (Wu, 2006, p.241-243). The government of China in the light of the reforms brought about in the policy structure relating to economic, social and technological development is also focusing on the optimal utilization of the natural resource base. Optimal utilization of the existing resource base would help the country gain the due potential in gaining economic and social developments in sustained manner. Thus the government of China in the era of globalization strongly works to set forth new policy standards that would excite potential foreign investments to be generated along the different sectors of the economy. Moreover the government authorities also endeavor to foster the development of regional manufacturers and supplier networks while also aiming to gain hold of international support in the forms of financial and infrastructural support (Kelly, Rajan and Goh, 2006, p.53-54). Conclusion The event of globalization has paved the way for the mutual development of both developing and developed economies through the process of mutual interaction and the transfer of needed funds and infrastructural skills and expertise. With the gaining of needed know-how along with funding support through the gaining of foreign investments the countries are found to grow and develop along the parameters pertaining to manufacturing, innovation, social and economic fronts. However the government of different countries is required to incorporate changes in the policy and reform structures on such a note as would assist in the effective optimization of the opportunities gained in such a global climate. Herein focusing on the region of China the government of the region is found to bring about changes in the policy structure related to manufacturing, research and development functions and also related to labor relations to contribute in the overall development of the social and economic situation of the region. Development of tertiary sector along with the existing manufacturing sector is also noticed that contributes to employment and information sharing opportunities while also aiming to enhance sustainable and optimal utilization of natural resources. References Chari, C., 2007. War, Peace and Hegemony in a Globalized World: The Changing Balance of Power in the 21st Century. New York: Taylor & Francis. Dator, J., Pratt, R., and Seo, Y., 2006. Fairness, Globalization, and Public Institutions: East Asia and Beyond. United States of America: University of Hawaii Press. Deng, Y., and Wang, F. L., 2005. China Rising: Power and Motivation in Chinese Foreign Policy. United Kingdom: Rowman & Littlefield. Guthrie, D., 2012. China and Globalization: The Social, Economic and Political Transformation of Chinese Society. New York: Routledge. Kelly, D. A., Rajan, R. S., and Goh, G. H. L., 2006. Managing Globalization: Lessons from China and India: Inaugural Conference of the Lee Kuan Yew School of Public Policy. United States of America: World Scientific. Tiirmaa-Klaar, H., No date. International competitiveness and the role of government in the globalised world economy [Pdf]. Available at: [Accessed 19 September 2012]. Wu, F., 2006. Globalization and the Chinese City. New York: Routledge. Wu, Y., 2006. Economic Growth, Transition, and Globalization in China. United Kingdom: Edward Elgar Publishing. Read More