Is the process of Globalization harmless for the planet and it's population?
Overview
With the technological advancement in the contemporary world, the process of globalization has gained moment raising questions regarding its impact on the planet and its population. Globalization is political, economic, and social phenomena that explain on the increased integration of the global society, especially in the economic integration (Gangopadhyay and Chatterji, 2005, 57). Some studies show that although globalization is an essential process in the modern world, the process involved is controversial. According to Dauvergne (2005, 371), some scholars argue that the process is the source of ingenuity, progress, and cooperation of the future world and enhanced the economic, social, and political environment. However, other scholars argue that the process of globalization facilitates capitalist exploitation of humanity and nature, and hence leading the world into ecological meltdowns (Dauvergne (2005, 371)). Such contradictory information shows that the process has two sides: pessimist side and optimist side. To determine the dominant side, a fundamental question lies on whether the process of globalization has an adverse impact on the world and its residents. Therefore, this paper provides an insight into the impact of globalization on nature, economics, politics, and governmental actions to determine whether the process is harmful or constructive.
Summary and critical evaluation
The common need and right for people are the equal and fair share of the resources that include the clean, healthy, and safe environment. However, various studies indicate that the environmental change and climate degradation threaten the access of these basic needs. According to International Federation of Social Workers (2012), "These challenges are widely recognised as presenting the greatest priority for global co-operation." This indicates that the climate degradation and environmental changes are attributed to the global warming. Huwart and Verdier (2013, 112) argues that globalization cannot be entirely or directly blamed for the environmental damage. They argue that globalization has facilitated a rise in the international trade resulting in rapid trade, production and consumption of a global resource, and consequently ecological impact. However, Huwart and Verdier assert that although it is hard "to assess the impact of globalization on the environment, it is quite obvious in some areas" (2013, 112). Such areas include air pollution through CO2 emissions, deforestation, and biodiversity.
Although not directly, various studies indicate that there is a positive relationship between the loss of biodiversity and the process of globalization. Over the few decades ago, the number of species has been diminishing and some are becoming extinct. Huwart and Verdier argue that although the link between globalization and extinction of some peace is not direct, human activities that result in this extinction are related to globalization. The globalization encourages new demand and needs of the world's resources. In this case, globalization "accentuates industrialization and the quest for and exploitation of new lands, subsoil and resource, thus weakening many ecosystems" (Huwart and Verdier, 2013, 115). Through this influence, 22 percent of the mammals, 24 percent of the snake species, 31 percent of amphibians, and 35 percent of birds in the world are facing the threat of extinction (Huwart and Verdier, 2013, 115).
A study conducted by Ehrenfeld also indicates that there is an indirect but close association between the process of globalization and loss of diversity. Ehrenfeld supports that although it is impossible to measure the impact of globalization on the extinction rate, it is quite evident that the process has a significant contribution to the loss of diversity (2003, 102). The author suggests that the effect of globalization is caused by factors such as increased exploitation and development meant to meet the new demands of trade and production. Other factors include the secondary impact of pollution, tertiary impact of climate change, the negative impact of ecotourism, and the impact of diminishing the number of exotic species (Ehrenfeld, 2003, 103). Therefore, from the existing knowledge of different studies, it is evident that there are indirect contributions of the process of globalization on the environment. Unless effective measures are employed to mitigate the situation, the process of globalization will continue to harm the world and its population.
Process of globalization on Economics
Consumer goods
According to Romančíková and Mikócziová (2011, 139), the globalization process involves liberalization of international trade, the flow of investment and capital, and enhancing transnational corporations. As a result, the process has enhanced and transformed the socialist economies into market economies. One of the impacts of globalization economies is the consumer price inflation. Although various existing studies that show the relationship of globalization and inflation, Pain et al. (2008, 14) argues that the relationship is not tested explicitly. This study argues that the existing literature has resulted in several conclusions. First, countries producing low-cost products create lower domestic inflation into the countries they export their products. As a result, this contributes to pressure on the local producers to lower their price and hence indicate of the impact of foreign competitions fuelled by globalization (Pain et al. 2008, 14). This scenario can be used to explain the impact of globalization on consumer prices such as oil prices.
However, Bowen and Mayhew (2008) argue that not always the increasing globalization contributes reduced import prices through downward pressure on inflation among developed countries. The authors assert that the current trend of the increasing commodity prices such as oil illustrates that globalization can sometimes lead to a rise in import prices. For instance, a study conducted by the International Monetary Fund (IMF) in 2006 was determined to inspect the relationship between the wage rate to changes in prices of real imports, oil price, lagged inflation, and the rate of unemployment. The study suggested that the fall in prices of real imports resulted in 0.5 percent point reduction in inflation from 1998 to 1999 and about 0.25 percent points in 2002 (Bowen and Mayhew, 2008, p.287; Pain, 2008, 16).
In addition, globalization affects the terms of trade, which consequently affects the import prices. For instance, the degree of openness has increased over time and hence reducing costs such as transportation costs. The globalization has also enhanced productivity and competition in the developing economies due to the emergence of the new businesses from foreign markets. However, globalization does not always improve the terms of trade in the developed countries (Bowen and Mayhew, 2008, 287). The globalization process has led to a rapid increase in prices of oil and other commodities in the global market hence suggesting that the process has a negative impact on countries' terms of trade.
Flow of investment and capital
Various studies indicated that the economic perspective of the globalization is linked to the flow of capital and foreign direct investment (FDI). Gangopadhyay and Chatterji (2005) and Romančíková and Mikócziová (2011) argue that globalization has contributed significantly on the invest both in the human and physical capital. The society predominantly links globalization with the key macroeconomic indicators such as employment and economic growth.
However, many studies do not focus on the ecological dimension of the process of globalization. Romančíková and Mikócziová (2011, 140) assert, "While the economic integration, realied via international trade and in flow of FDI and capital, is an essential factor that influences the environmental quality and sustainable development of a country." In other words, the inflow of capital and FDI facilitates economic growth, increase employment, and improve access to the global market as well as technologies. However, the impact of globalization through FDI and capital flow is a two-sided sword, in which it affects the economy negatively and positively.
According to Romančíková and Mikócziová (2011, 140), the globalization can lead to the extent of pollution and exploitation of environmental resources. In addition, globalization process contributes to equity problems in the distribution of funds and capital among organisations, individuals, religions, and nations. Gangopadhyay and Chatterji (2005, 71) argue that many of the benefits have been absorbed by the rich nations, organisations, or nations, generating inequalities and triggering potential conflicts internationally and nationally.
The debate has been constructed to illustrate how the poor countries are benefiting from the globalization because they are growing at a faster rate than the developed countries. However, the reality is that small groups of countries such as China have been growing at a higher rate than developing countries in Asia, Africa, and South and Central America (Gangopadhyay and Chatterji, 2005, 71). Therefore, it would be irrational to argue that globalization is facilitating the growth of the developing economies. Instead, the developing countries are marginalized, hence showing a greater prevalence of inequalities.
Similar to the adverse effect of the inflow of FDI and capital on equalities, the technological advancement facilitated by globalization also leads to inequality. Research conducted by the IMF, the impact of technological advancement on inequalities is similar to that of FDI. For instance, "Just as FDI increases the rewards for higher-value-added activities, technological progress also creates greater demands for those with higher skills." (International Monetary Fund, 2007, 156). The report also argues that the increasing globalization and the spread of technology are depended on each other. The globalization help to spread the advancement of technology, which consequently help to enhance trade and financial connections between countries (International Monetary Fund, 2007, 156). However, the impact of technology and globalization varies according to countries. The report asserts, "Among advanced economies, globalization has contributed somewhat more than technology to the 0.6 percent average annual increase in the Gini coefficient over the past two decades" (International Monetary Fund, 2007, 150). Overall, globalization has created fertile ground for technological advancement, which has created inequalities.
Politics and Government Actions
Another essential feature of globalization is politics. Globalization is a growing process that has affected various aspects of daily lives, and as a result, it should be taken lightly. The accumulation of power in a particular international government is referred as political globalization. According to Wiseman, globalization is the most dangerous, slippery and important buzzword since it is used as a simplistic and powerful justification for the endless increase of unregulated capitalist relations (Wiseman, 1998, 1). Just as families are combined into tribes and eventually tribes combined into nations, the same case the nations are combined into regional blocs making it a solitary world political community. Although the idea is political globalization is threatening, no rejection that it is happening. Since the dawn of industrialization, various international organisations have developed, for instance, the most famous one today is United Nations (U.N).
The main objective of the U.N is to work aiming to achieve peace among different nations and achieving other development goals. The idea of different countries coming together has become to be an effective solution for global peace. U.N has become an example of the diplomatic global village with members from 185 nations. Delegations from each nation come to a treaty abided by rules and policies hence reducing conflicts among its members.
Political globalization has become a great benefit to the developing nations since they are prone to the risk of being invaded as well as taken adventure of. Rather than achieving peace, political globalization has also become a platform that is used to solve issues such as poverty, environment, education and organised crimes (Wiseman, 1998, 13). The developed nations are fragile to such issues. Therefore, there is a need for such global issues to be addressed. The help of international organisations such as U.N and other nations be it human resources or money, the developing nations will have a better chance towards eradicating such global problems.
On the other hand, political globalization is not often as magnificent as it looks. The condensing of power sometimes can mean industrialised nations are becoming more powerful than others do. The five permanent members of the United Nations that include U.S, Russia, China U.K, and France dominates the U.N Security Council, making it powerful than the General Assembly that consist of all delegates from all United Nations member states (Shelley, 2000, 227). U.N member states have laws that they must abide by. However, the international laws may not be the same way they are intended to be since the industrialised nations play a role in influencing the opinions on the actions to be implemented. As a result, the control of the political and economic issues is shifting from the sovereign states to entities such as multinational, international organisations, and most powerful countries (Gangopadhyay and Chatterji, 2005, 71).
In addition, political globalization system can result in conflicts of ideologies. The world remains to be a diverse place, with distinct nations trying different ways of governing aspects such as democracy, capitalism and communism (Evans, 1997, 70). For instance, in the case of the United States and China, political globalization resulted to political tension when the two nations were trying to spread their ideologies. Industrialised nations have stuck between powerful nations due to pressure to submit to one definite ideology depending on the risks and benefits offered, instead of using their will.
The evolution of global governance is the development of human efforts to manage life on earth. Hopes and concerns about international investment revolve, is among issues about globalization that need government actions. International conflict, natural disaster and financial crisis are global problems that governments need to intervene. Therefore, there is a need for government actions to correct market failure and manage globalization in different government levels. For instance, a local government is best placed to control local pollution. While the national government is best suited to conduct a defence policy for the whole nation.
According to Hart and Prakash, good governance is an essential development that can occur in every government (Hart & Prakash, 2003, 3). A good governance involves three paradigms namely civil society, government, and business society with respective functions. Additionally, a good governance should enhance societal participation in representing political stability as well as the freedom of speech. The government should enhance actions such as governance orientation to facilitate efficiency justice as well as corruption-free bureaucracy. Globalization has affected governance at country-level since it has become an independent variable (Hart & Prakash, 2003, 5). It is inappropriate to have the governance of globalization since it can put at risk the political sustainability of globalization.
Conclusion and suggestion for future research
As elucidated, the existing literature indicates globalization has both positive and negative on the economic and political integration. Although the process of globalization facilitates liberalization of international trade, the flow of investment and capital, and enhancing transnational corporations, it has many negative consequences. The process has resulted in an increase in prices of oil and other commodities, produced inequalities, and triggering potential conflicts internationally and nationally. In addition, the existence of multinational, powerful member states and international organisations has diluted the control of politics and economies by sovereign governments. Since the cost outweighs the benefits of globalization, this paper concludes that the process of globalization is harmful to the world and its population. However, the studies do not show to what extent does globalization affects the world and the population. A study should be developed to provide ways in which we can measure the impact of globalization on nature, politics, and economical to help formulate concrete policy to mitigate the situation. In addition, a standardised measure should be developed because the effect of globalization varies in different countries such as developing versus developed, hence making it difficult to measure the impact.
References
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