Globalization refers to the integration of economies around the world contingent on the removal of restrictions on trade and finance. Globalization also refers to the exchange of cultural ideas. The effects of globalization reach all countries from the richest to the poorest.
Though globalization has been around for quite some time, for the United States and the rest of the world, globalization as a dominant economic philosophy began after World War II (1935-1945) with the General Agreement on Tariffs and Trade (GATT) in 1947. GATT sought to eliminate tariffs. Eventually, GATT became the World Trade Organization (WTO), which functions in much the same way as the GATT did to reduce trade tariffs. Other organizations along with the WTO like the International Monetary Fund (IMF) and the World Bank control the flow of loans and development funds to developing countries ("Globalization").
Many people are opposed to globalization because they argue it hinders the efforts of poor countries to work their way out of poverty, and it helps the rich countries of the world maintain their wealth through a position of dominance. Others argue that globalization helps people escape poverty, and it's the best method of bringing democracy and freedom to many parts of the world.
Negative Effects of Globalization
According to Indra De Soysa and Krishna Chaitanya Vadlamannati in "Does Being Bound Together Suffocate, or Liberate? The Effects of Economic, Social, and Political Globalization on Human Rights, 1981-2005", opponents of globalization state it takes away the autonomy of governments to act in a community's interest because it hinders social and economic growth.
With globalization, countries are forced to conform to the dictates of competition that force them to lower social standards in order to be competitive. In other words, the lower class citizens in third world countries affected by globalization do not reap any economic rewards from their society. They are oppressed instead by competition. Krishna and Vadlamannati further state that many of these people find themselves alienated and some may challenge authority that leads to political violence.
Other negative effects of globalization are job insecurity. Increased competition for employment has lead to reductions in wages and lower standards of living worldwide. Globalization as also lead to exploitation of workers, especially children, and globalization has increased human trafficking. Companies that set up industries in other countries cause pollution and usually do not adhere to following basic rights for their employees since there is typically no or few regulations for employer conduct.
Positive Effects of Globalization
Proponents for globalization state there are many positive effects. In addition to reducing poverty and raising the standard of living, globalization spreads democracy. Globalization also introduces new technology into developing countries.
One of the most significant positive effects of globalization is the spread of modern medicine. "With the exception of decreased life expectancy rates in countries most ravaged by the AIDS virus...the life expectancy in developing countries rose to 65 years in 1997, from 55 in 1970. That substantial increase is attributable, at least in part, to improved medical care made possible by globalization," Daniel Griswold says in the Issues & Controversies On File article, "Globalization."
Proponents of globalization say it's a positive force that is making the world a better place because economic and social indicators like poverty rates, infant mortality and education reflect that many people are better off than they were before globalization, even though they are still very poor.
Effects of Globalization
While globalization has positive effects because it helps produce wealth in underdeveloped countries, the wealth that it produces seems to end up mostly in the pockets of the rich, instead of the poor. The idea of globalization as a concept is positive, but more people should be able to benefit from it.
Globalization is a major force shaping the world, and it's not a matter of if it will continue. It's a matter of how it will continue.
Sources:
De Soysa, ?Indra and Chaitanya Vadlamannati, Krishna. "Does Being Bound Together Suffocate, or Liberate? The Effects of Economic, Social, and Political Globalization on Human Rights, 1981-2005." Kyklos, Feburary 2011, Vol. 64 Issue 1, p20-53.
"Globalization." Issues & Controversies On File: n. pag. Issues & Controversies. Facts On File News Services, 29 Dec. 2006.
Cathy Herold - Cathy Herold lives in southern California. She has a BA in English and minor in African American Studies from UCLA and a master's degree ...
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