Globalization in question

· The principle policy concern of globalization is usually put in terms of issues of economic efficiency. Economists tend to judge globalization largely in terms of the gains or losses that it brings to the productive development of scarce world resources. However, many would argue that economic growth should always be secondary to, and in service of, security, justice, and democracy.

· On these issues the evaluations have been both positive and negative. In some respects, globalization has promoted increased human security, for example, with disincentives to war, improved means of humanitarian relief, new job creation opportunities, and greater cultural pluralism. However, in other ways globalization has perpetuated or even deepened warfare, environmental degradation, poverty, unemployment, exploitation of workers, and social disintegration. Thus, globalization does not automatically increase or decrease human security. The outcomes are positive or negative depending on the policies that are adopted toward the new geography.

· Social justice can be looked at in terms of the distribution of life chances between classes, countries, sexes, races, urban/rural populations, and age groups. The bright side of globalization has in certain cases improved possibilities for young people, poor countries, women, and other subordinate social circles, allowing them to realize their potentials. More negatively, however, globalization has thus far sustained or increased various arbitrary hierarchies in contemporary society. For example, gaps in opportunities have tended to widen during the period of accelerated globalization on class lines as well as between the North (industrialized) and the South (underdeveloped) and the East (current and former communist state socialist countries).

· The resultant increases in social injustice can be attributed at least partly to the spread of relations beyond territorial boundaries. The inequities have flowed largely from the policies that have been applied to globalization rather than from globalization per se.

· In terms of the impact of globalization on democracy, the positives are through new information and communications technologies and an expansion of civil society. The downside is that there is a lack of mechanisms to ensure that post-sovereign governance is adequately participatory, consultative, transparent, and publicly accountable. Bold intellectual and institutional innovations are needed to refashion democracy for a globalized world.

· There is much academic discussion about whether globalization is a real phenomenon or only a myth. Although the term is widespread, many authors argue that the characteristics of the phenomenon have already been seen at other moments in history. Also, many note that those features that make people believe we are in the process of globalization, including the increase in international trade and the greater role of multinational corporations, are not as deeply established as they may appear. The United States’ global interventionist policy is also a stumbling point for those that claim globalization has entered a stage of inevitability. Thus, many authors prefer the use of the term internationalization rather than globalization. To put it simply, the role of the state and the importance of nations are greater in internationalization, while globalization in its complete form eliminates nation states. So these authors see that the frontiers of countries, in a broad sense, are far from being dissolved, and therefore this radical globalization process is not yet happening, and probably won't happen, considering that in world history, internationalization never turned into globalization—the European Union and NAFTA are yet to prove their case.

· The world increasingly shares problems and challenges that do not obey nation-state borders, most notably pollution of the natural environment, poverty, and disease. As such, the movement previously known as the anti-globalization movement has transmogrified into a movement of movements for globalization from below; seeking, through experimentation, forms of social organization that transcend the nation state and representative democracy. So, whereas the original arguments of anti-global critique can be refuted with stories of internationalization, as above, the emergence of a global movement is indisputable and therefore one can speak of a real process towards a global human society of societies.

What Is Globalization?

Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

Globalization is not new, though. For thousands of years, people – and, later, corporations – have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries, people and corporations have invested in enterprises in other countries. In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 1914.

Map of the Silk Road. But policy and technological developments of the past few decades have spurred increases in cross-border trade, investment, and migration so large that many observers believe the world has entered a qualitatively new phase in its economic development. Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion. Distinguishing this current wave of globalization from earlier ones, author Thomas Friedman has said that today globalization is “farther, faster, cheaper, and deeper.”

This current wave of globalization has been driven by policies that have opened economies domestically and internationally. In the years since the Second World War, and especially during the past two decades, many governments have adopted free-market economic systems, vastly increasing their own productive potential and creating myriad new opportunities for international trade and investment. Governments also have negotiated dramatic reductions in barriers to commerce and have established international agreements to promote trade in goods, services, and investment. Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners. A defining feature of globalization, therefore, is an international industrial and financial business structure.

Technology has been the other principal driver of globalization. Advances in information technology, in particular, have dramatically transformed economic life. Information technologies have given all sorts of individual economic actors –consumers, investors, businesses – valuable new tools for identifying and pursuing economic opportunities, including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with far-flung partners.

Globalization is deeply controversial, however. Proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that the creation of an unfettered international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people. Resistance to globalization has therefore taken shape both at a popular and at a governmental level as people and governments try to manage the flow of capital, labor, goods, and ideas that constitute the current wave of globalization.

To find the right balance between benefits and costs associated with globalization, citizens of all nations need to understand how globalization works and the policy choices facing them and their societies. Globalization101.org tries to provide an accurate analysis of the issues and controversies regarding globalization, without the slogans or ideological biases generally found in discussions of the topics. We welcome you to our website.

Globalization, as a concept, refers both to the "shrinking" of the world and the increased consciousness of the world as a whole. It is a term used to describe the changes in societies and the world economy that are the result of dramatically increased cross-border trade, investment, and cultural exchange. The processes and actions to which the concept of globalization now refers have been proceeding, with some interruptions, for many centuries, but only in relatively recent times has globalization become a main focus of discussion. The current or recently-past epoch of globalization has been dominated by the nation-state, national economies, and national cultural identities. The new form of globalization is an interconnected world and global mass culture, often referred to as a "global village."

In specifically economic contexts, globalization is often used in characterizing processes underway in the areas of financial markets, production, and investment. Even more narrowly, the term is used to refer almost exclusively to the effects of trade, particularly trade liberalization or "free trade."

Between 1910 and 1950, a series of political and economic upheavals dramatically reduced the volume and importance of international trade flows. Globalization trends reversed beginning with World War I and continuing until the end of World War II, when the Bretton Woods institutions were created (that is, the International Monetary Fund, or IMF, World Bank, and the General Agreement on Tariffs and Trade, later re-organized into the World Trade Organization, or WTO). In the post-World War II environment, fostered by international economic institutions and rebuilding programs, international trade and investment dramatically expanded. By the 1970s, the effects of the flow of trade and investment became increasingly visible, both in terms of the benefits and the disruptive effects.

As with all human endeavors, globalization processes are strongly affected by the values and motivation of the people involved in the process. In theory, globalization should benefit all people because it can produce greater overall economic value. Achieving an equitable distribution of the added value, however, would require the people who dominate the market to embody the virtue of sacrificing themselves to serve the higher purpose of the good of all. However, the legacy of colonialism, which causes a lingering arrogance among the powers in the Group of Eight and creates suspicion in the developing world, means that for many people, globalization is feared and resisted as a negative. Corporatist culture is seen as trampling upon local values and local economies. The Western, secular value system of the major economic actors is seen as a neo-colonial affront to people with non-Western religious and cultural values.

Thus, resistance to globalization is growing in many places, manifesting in the early twenty-first century with rise of Islamic terrorism. That al-Qaeda's target on September 11, 2001, was New York City's World Trade Center was no coincidence.

To be successful, the leaders of the globalization process need to practice the virtues of respect for religious and cultural values, and sacrifice their economic self-interest for the benefit of people suffering poverty and want. It is a challenge whose resolution requires world leaders to pay heed to the religious and cultural dimensions of life and to develop a global world view that lifts up the shared values of all cultures.