I. Introduction
Much of the world is a buzz by the word: Globalization. ‘Industrialization’, ‘development’ and of course ‘future’ often follow this word. Globalization is the phenomenon which has taken the world of the 21st Century by storm.
II. Importance of Globalization
Globalization can possibly be defined as the development of international relations between nations in order to develop “interconnectedness in all aspects of contemporary social life…”. This phenomenon has been developing over time ever since the Romans first discovered and perfected the sea trade routes to India, gaining access to the all important Spice Trade – long before De Gama! However, it is accepted that in post-WWII/Cold War eras Globalization has taken its’ place in prominence. Developed nations such as U.K. and USA are on the verge of running out of resources – especially Human and Natural Resources, whose economies are dependent on high inputs of such capital. Therefore, these developed states have to seek other ‘third party’ sources in order to feed their economic machines. And developing nations are more than willing to oblige since it furthers and improves its socioeconomic status.
Thus, within the last few decades this need has contributed to the mass development of telecommunications, vast increment global international trade, progress of monetary coordination, emergence of multinational corporations, etc. And as we move into the 21st Century this “cultural” phenomenon is evermore present, particularly where economic prosperity is concerned. Much of the world of today is affected in one way or another by other’s states actions.
A good example of how entities actions having lasting global effects is the sudden surge of oil prices during the year of 2008. With OPEC (Organization of the Petroleum Exporting Countries), the world largest cartel of this natural resource, forced the increase in the prices of this necessity. This caused the sudden worldwide inflation for all other goods and services in order to cover the rise. In addition, the Wall Street Crash of 1929 also shows the impact of how a single nation’s economy can cause the buckling of every other major economy in the world. So we can see that as we continue striving forth in the 21st Century, Globalization will continue to play a vital role.
III. Advantages and Disadvantages of Globalization
Globalization has led to the spread of technical advances, greater intercultural contact and international cohesion-for example Globalization brought the world leaders to Seattle for the World Trade Organization (WTO) meeting in 1999. In addition, Globalization has helped the spread awareness and aid in forming international labor standards, development of human rights, and movements for emancipation women.
Globalization has both been accelerated and cause advancement in both computer and communication technology. Computers have made the standardization of national economies easier; the fax, the cellular phone, and especially the internet have increased the speed with which companies and individuals can communicate with one another. Satellite technology has facilitated this communications revolution and made the instantaneous transmission of images possible. The Tiananmen Square Protest of 1989 was the first news event covered by satellite news, which affected the very process and outcome of the event.
However, Globalization has created dependency for certain players in International Relations – e.g. some countries have come to rely on regional and international trade agreements, thus cooperation becomes a key component for them, Singapore is one such case. Accordingly, Globalization also further enhance the collective goods problem; in addition to dependency. Certain actors are influenced to let other actors that are providing the avenues of economic support to have operating priority, who might then exploit national resources, without concern for the lasting effects. In Indonesia producing goods to meet demands nationally and internationally will emit waste that could be detrimental to its neighbors – Malaysia & Singapore. Thus, the nations’ Governments need to resolve this situation via negotiations, by which time it could be too late.
IV. Will Globalization survive?
When looking at the future of Globalization, it is virtually impossible not to discuss the two countries that are primed for immense global growth, India and China. Together, both countries make up one third of the world population, and have enough human and natural resources to power worldwide growth. BusinessWeek (“A New World Economy”, 2005) predicts that within three decades, India will overtake Germany to become the world’s third largest economy, and by mid-century China should have vaulted over the United States as the No. 1 economy. In 2001, a Goldman Sachs economist coined the acronym BRIC, referring to Brazil, Russia, India and China, the four countries that when combined, were expected to eclipse today’s richest countries by 2050. Even Africa might enter the competition if they are able to improve their infrastructure which is currently impeding its development.
Evidently, the future does not hold much for Wall Street’s receding hegemony. This tectonic shift of economic power towards other regions nudges United States off the top of the current fiscal hierarchy, paving the way for a multipolar system. The BRIC economic forecast mentioned earlier even predicted that China will become “the industrial workshop of the world” whereas India will dominate the service sector (David, 2005).
Nevertheless, one must not assume that economic multipolarity ensures strategic multipolarity. It is likely that the United States will remain the supreme military power, and continue to be the security guarantor of Western Europe, Japan and its other allies. Depending on various factors, it might extend or shrink its nuclear umbrella. This is especially of many people’s concern considering the inter-polar rivalries that might evolve. Russia is wary of the re-emergence of China; India and China has yet to solve its age-old border disputes; and India sees its rise in terms of a close relationship with the United States to counter Beijing (Laidi, 2008).
A multitude of challenges that the poles are going to face in their pursuit of economic power and prosperity includes hurdles such as poverty, a myriad of environmental problems and human rights issues currently plaguing the developing countries. More specifically, there is the recent setback in the form of low expectations for the Doha Rounds to achieve its ambitious objectives (Schott, 2008). Despite all that, Globalization will continue to charge forward. Though its consequences are far from preordained, multipolarity is already on its way.
V. Conclusion
Through this research paper, we have learnt that both state and non-state actors apply the core principles of International Relations (i.e. Dominance, Reciprocity and Identity) to solve the collective goods problem. This is especially vital in Globalization as developed nations and industries require new avenues to further their advancement. As a result, diplomatic relations between the North-South states draws closer – benefiting all parties involved. Thus, making the phenomenon of “Globalization” significant in the 21st Century and beyond.
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