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Contents
1.1 Overview of Globalization
1.2 Etymology and Usage
1.3 Modern Globalization
1.4 GATT: An Engine of Globalization
1.4.1 Economic Globalization
1.5 Political Globalization
1.6 Cultural Globalization
1.7 Globalization and Global Work Force
1.8 Criticism of Globalization
1.9 Antiglobalization Movement
1.9.1 Opposition to Capital Market Integration: Anticapitalist Movements
1.10 Justifiable World Order Argument
1.10.1 Anticonsumerism
1.10.2 Antiglobal Governance
1.10.3 Environmentalist Opposition
1.10.4 Globalization of Indian Economy
1.10.5 Global Corona Virus Disease of 2019: Policy Gyration on Globalization
1.10.6 Inference
References
1.1 Overview of Globalization
Integration across geographical boundaries has been an insatiable quest of human being for different altruistic purposes. The connect between the nations existed informally for the purposes of trade and cooperation. The trade has always been the most instrumental and effective vehicle for such integration among the different countries across the geographical boundaries.
The geographical and economic history is full of evidences which convince us of the fact that an appetite for globalization existed since the time immemorial. Craving for multimodal exchanges has fostered the globalization over the period of time. Through exchange of products, ideas, overtly or covertly, we find that other aspects of human life like philosophy, religion, language, and arts have started exerting influence and impression over others [1].
The footprints of globalization could be traced backed to the 15th and 16th century. In the 19th century, it toed along with technology exchange, transport and sophisticated infrastructure [2].
1.2 Etymology and Usage
The term globalization refers to the autonomous surfacing of social and economic systems which aims for international cooperation. Social, economic and management scientist have given different expressions to integration of material, human and intelligence across the nations. It is a fallacy to understand that the globalization is an international phenomenon of speeding and widening the connections across the geographical boundaries. Globalization within localization and localization within globalization have later become the approach styles for many proponent of globalization. In 2000, the International Monetary Fund (IMF) gave vivid expressions to different building blocks of globalization [3].
Today on the threshold of the 21st century, we realize the world is effectively revolving around these four fundamental blocks of globalization as expressed by IMF [4].
1.3 Modern Globalization
Modern globalization was an era of transportation network, corridors for trade facilitation and intentional and deliberate attempts to reduce the cost of logistics and transaction cost of conducting the business between the two countries. Importantly the modern globalization has essentially evolved and shaped by imperialism engineered by the nation of shopkeepers. Imperialism in Africa and Asia is testimony to this fact.
The wave and the rise of globalization received a setback during the First World War. It was proved that political animosity and undeclared economic embargo can never go hand in hand. For healthy and undisrupted globalization, we need healthy cooperation among the nations of the world [5].
The Breton Woods conference was a step in a right direction which provided meaning and order to the concept of globalization. It was a political steering for economic cooperation which hinged around the philosophy of comparative advantage. Modern technology and modern science with the state of the infrastructure in developed countries of the world along with patronage from international agencies like World Bank and IMF gave much needed boost to the wave of globalization.
Initially, the General Agreement on Tariffs and Trade (GATT) accelerated the process of removing the gray areas by dismantling the trade restrictions so as to provide level-playing field to all participants. Excessive protectionism and globalization are the anomalies they cannot go hand in hand. Hence the birth of World Trade Organization took place to facilitate orderly free trade with reasonable degree of protectionism to safeguard the interest of less developed countries of the world [6].
The World Trade Organization laid out the carpet in the form of a formal institution to facilitate international trade. However, the Doha round was a stigma for globalization which receded the global partnership to a great extent though transitory.
A final nail was put in the coffin of GATT in the Doha round. With acute discordance and lack of consensus, the nations started exploring on their own that culminated into bilateral trading partnership on one to one basis. The purple patch of GATT got effaced from the international mindsets.
1.4 GATT: An Engine of Globalization
However, it is pertinent to glance through the achievement canvass of GATT. It was indeed regarded as an engine of growth for global economies. The aim of GATT was to achieve “substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis.” GATT took her birth from the ambers of International Trade Organization which was an international platform for negotiations for the governments of different nations.
The currency period of GATT was from the year 1958 till 1993, when it was replaced by the World Trade Organization in 1995. It is not that with eclipse of GATT all the relics are forgotten, some of the clauses and understanding of GATT have found their honorable entry into World Trade Organization (WTO). Some of the traces of GATT can still be found under WTO which is kept on the anvil from time to time for bringing about apt and time-tested changes [7].
As stated earlier, the World Trade Organization took her birth from the ambers of failure of Uruguay round. The success story of WTO has been phenomenal in ending the disputes and creating parity of justice in global economics and commerce. WTO has been massively successful in reducing the tariff walls and expanding the international trade. The dispute settlement and redress mechanism of WTO played an important role to bring the nations together on a common table for creating a win-win situation. The success story of WTO lies in the fact that many nations are joining the bandwagon of globalization today and WTO is holding the fort quite successfully.
The conflict of interest and resolving them amicably has been the founding principle of WTO. The nations eying for experts markets and nations who were fighting tooth and nail to protect the domestic agriculture market was a regular scene of discordance in so far as WTO is concerned.
Agriculture was a special subject which received special cognizance in both the arrangements. Agricultural sector was a bone of contention. The club of some countries called as “cairn group” wanted agricultural products to be brought under WTO for free trade. This group was not ready to sign WTO agreement in the absence of free trade of agriculture products. Hence over the years, it paved the way for inclusion of agricultural products into the ambit of WTO.
1.4.1 Economic Globalization
Economic globalization is a deep integration through value chain of trade in products and services as well as setting up of facilities across the world for creation of wealth. For fruitful economic cooperation, reduction in tariff walls and creation of congenial atmosphere for international trade have always been the hallmark of international policy.
China is perhaps the classic example who started exploiting the trade liberalization since 1980. Success story of China lies in optimum exploitation of foreign direct investment (FDI) as a route to invite foreign capital. China as a country has surpassed many nations in so far as market openness is concerned [8].
As a result, the stock of wealth in China is massive which is finding exit route through currency devaluation. China is known for global manufacturing hub and dumping king of the world. It all happens because China exploited comparative advantage of low-cost labor economy to the fullest. India is a low-cost labor country yet the growth rate of China and India makes a huge difference [9].
Economic globalization of India which took off in 1991 has started yielding the desired results in the second decade onward. It is said that due to active globalization of India, 300 million people could escape the extreme poverty in India. Indian products and services found the attractive international markets and it is today an attractive destination for business outsourcing from the developed economies.
1.5 Political Globalization
With economic interest, the nations over the long run tend to develop geopolitical interest as well. The hunt of virgin markets for exports and competitive markets for cheap imports makes the case fit for competitive spirit in international trade [10]. The trade value ultimately determines the quality of nation’s political relations with other nations. The relations get spoiled in the events of trade and economic embargos which often take place due to pursuance of nuclear programs, etc.
1.6 Cultural Globalization
Naturally, the free movement of goods, services and manpower has direct as well as indirect bearing on the culture of the nation. Many hence argued and continue to fight against the philosophy of globalization because they feel that behind cultural pollution globalization is the main culprit [11]. The term globalization bound to alter to some extent the cultural practices. Certain aspects of the culture may get lost if degree of globalization is more or they may assume another form. Americanization and westernization are the common terms which are being used to express the cultural pollution being driven recklessly by globalization.
1.7 Globalization and Global Work Force
In the context of globalization, the popular term coined as global village. The work force of the global village is soaring day by day giving birth to colloquial debate issue brain drain or brain gain. The labor is finding an attractive destination for appropriate reward. This way the factors of production are excited for freedom of choice. The movement of work force across the globe is the result of active globalization. The pool of international worker is soaring across the globe. By the year 2019, it already cross...
