A connected world where individuals and companies are inter linked, international organizations work together for the benefit of all, share knowledge, culture, engage in trade and diplomatic relations and stand for each other at the time of any hardship is known as globalization. United Nations of Organization (UNO), International Monetary Fund (IMF), European Union (EU), African Union, Arab League, South Asian Association of Regional Cooperation (SAARC) and Shanghai Cooperation Organization (SCO) are such international political and economic collaborations.
Yet there is a misconception looming or debate going on whether globalization has failed or not.
At this juncture the fabulous brain storming annual session of 2019 World Economic Forum (WEF) at Davos introduced the title “Globalization 4.0”. Intention of this term is to discuss and bring balance between geo-political, geo-strategic and geo-economic actors, address problems and enhance communication. International communities need reform and wider engagement.
Without much awakening we are living in a world which isalready added on physically and through internet. For example accessories of Prada an Italian brand, Nike American Company, food and coffee chain like Subway and Starbucks of USA, Xiao Mei phone of China, Nokia from Finland have world wide access. Furthermore Microsoft , Facebook, Tiktok are foreign companies used globally as household instruments or service provider that even end users do not realize they are using exotic product or service every day and each moment.
- Financially – business among countries
- Culturally – Hollywood movie, western dresses and food, Indian Yoga ( meditation and exercise), Chinese Fengshui (science which fit individuals with the environment)
- Diplomatic relations- establishing embassy, exchanging students and employees, modern diplomacy like engaging on social networking sites
- Military – joint military exercise
- Being member of international and regional organizations like UN and World Trade Organization (WTO)
- Digital technology – not only it links through satellites, search engines like Google and Ask.com, Grammarly for correcting grammar, translation services of Google, Trip Lingo &Waygo multiplying human intelligence outside zonal and indigenous boundaries.
- Digital economy – At present 1.7 billion people do not have a bank account. In this state for last 30 years Western Union working as a boon for people of about 200 countries. Through Western Union without having any bank account one can send and receive cash legally internationally without any hassle.
- Migration – while ‘migration’ becomes a publicity slogan for many, 40% of US 500 Fortune companies are propounded by migrants. Also yearly $630 billion sent by migrants from their host to home countries. This is generated out of their contribution to work force.
- Telecommunication – is another sector whose employees are less educated people for outsourcing companies.
Recent trade tension between USA and China creates an assumption that globalization is not functioning. Although this fallacy is not correct yet the cause of strain between two countries US and China is not known to many. It is matter of commerce, ism and domestic politics.
In the cold war period two world powers and two isms democracy and socialism divided most of the sovereigns. Again democracy prevailed over all political system so also one power influenced all. In the meantime China emerged by adopting political socialism and opening up market economy. China has lifted 82.39 million people out of poverty line keeping target to alleviate poverty by 2020 which is also one of UN’s Sustainable Development Goal. Imitating foreign technology like Baidu substitute for Google or Renren similar to Facebook now China is going to be number one in Artificial Intelligence (AI). Besides technology and trade contention another political reason blamed for this hustle bustle. If to believe Fox news telecastin May 2019, revealed that a gala pole shows 47% Americans prefer a socialist in coming election as a presidential candidate. The real reason is masses are not attached to capitalism or Marxism but they want a good life, employment, health and education liberties.
Challenges of Globalization:-
Globalization is good for competitive nations and industries but brings disadvantage for less emulative establishments and countries. Still 3 billion people have access to internet but 4 billon do not have. More than 1 billion people living without electricity.
- Inequality – some are fast moving while others lagging behind
- Fair rule of game – same rules should be applied for each country
- Epidemic – like Ebola, Sars, Covid 19
- Global warming – its effect on the ecology
- Trade war – because of unnecessary tariff, mistrust, protectionism, cyber crime
- Robotization – people losing jobs because of robotics
- Bi-lateral issues – Current trade war between US-China not only affecting two countries but also affecting other multinational companies who are commercially wired with each other.
Globalization can be empowered by means of:-
- Cooperation – among nations through these international organizations. Grow tendency on unilateralism. Untangle issues like intellectual property, espionage or border queries.
- Protectionism and Political will– local politicians should tackle corruption, respect human rights and encourage people to rise above mean protectionism.Denmark is imparting fabulous instance how individual countries can change the situation. Denmark government traces citizens before lay off, takes care with minimal revenue, reskill them, apprentice until they are engaged in another job.
- Flexible domestic policies for international trade- appropriate tariff for both domestic and Foreign Direct Investments (FDI), flexible trade provisions like on line visa makes people think that they are part of global economy. Unless they will reproach foreign trade and immigrants.
- Rule based international order – the G20 summit of June 2019 aims to achieve economic growth, economic equality and go parallel.
- Opening – up policy- China opened-up its market and invited developed economies provide it technology, capital and distribution system in lieu China procured infrastructure and cheap labor. While foreign companies gained profit China also earned money and employment for its people. Wal-Mart stores in China are one of such example.
No one is interested in unilateralism or hegemony. In this age of information and technology globalism is de facto not fable.
WRITTEN BY : NANDINI DASH