Introduction
The concept of globalization, the amalgamation of the different economies in the world, is a frequently debated issue in contemporary academic and political forums.The “importance of globalization” refers to the value gained by different nations due to their input in the process of globalization while the “need for globalization” expresses why it is necessary to implement the concept of globalization. Globalization rate indicator has become an essential measure of development due to the interrelationship between economic development and globalization (Irani and Noruzi 216). The current wave of globalization is a replica of the first wave experienced in the mid nineteenth century which led to the First World War and subsequent instances of globalization also had some negative outcomes (Srinivasan 2).It is an accelerated resumption of the first wave and this is perceived as a threat to economic and political stability by many anti-globalization groups. In recent times, globalization has encountered increased criticism resulting from a number of contemporary issues associated with its realization such as the socio-economic inequality and the question of independence over interdependence. This opposition can be subdued through the re-assertion of the benefits and the need for globalization in the modern world.
Literature Review
Importance of Globalization
Globalization is an essential component in the economic development of the world; different aspects of trade are sustained through the process of globalization.Teitel’s (444) definition of globalization as the occurrence of augmented integration illustrated by enhanced global trade and increased factor mobility, expresses the main importance of globalization, which is economic advancement. First, the ease of mobility of commodities, labor, capital, and information as well as accessibility to the vast world marketthrough international trade has resulted from the relations fostered between the different nations through globalization. Akram et al. (293) illustrates the expansion of the general world economy by assessing the effects of globalization on different aspects of trade and investment. The creation of a global market, increased foreign direct investment flows, formation of transnational corporations, and advancement of technology due to increased competition are the main contributing factors to a comprehensive and advanced international trade system, which is a building block of economic development (Akram et al. 293-294). The globalization process has been indispensable in the emergence of global markets, ease of access to foreign products for both consumers and corporations (Irani and Noruzi 216).For example, India has maintained an economic growth rate of around 6% per annum due to the liberalization of its trade an increase from the 3.5% per annum growth rate in the decades before liberalization (Srinivasan 3).
Need of Globalization
Globalization is necessary for the reduction of poverty, increased employment of factors of production, integration of different cultures, and spreading environmental awareness. There is an inverse correlation between augmented economic activity due to globalization, and the declining rates of poverty. According to Akram et al., (295), countries such as India, Mexico, and Zambia, which are observant of the concept of globalization, have experienced improved macroeconomic outcomes in comparison to their counterparts. For instance, in 1950-1980, India’s average rate of poverty was at 50% and it declined to 25% in 2000 due to India’s participation in the process of globalization (Srinivasan 4). Cultural assimilation is another benefit of globalization. The emergence of a global identity has resulted in increased tolerance of cultural diversity as well as enhanced tourism around the world (Akra et al. 296). International and interregional social and cultural conflict can be resolved through the unification of diverse communities in the world (Irani and Noruzi 216). Political accord and shared values are perceived by pro-globalization groups to be the results of a global identity (Irani and Noruzi 217).Environment sustainability and awareness has also resulted from international relations.Globalization has increased the initiative to preserve the environment which is an essential practice for the survival of human kind (Akra et al. 296).
Opposing Viewpoint
The anti-globalization view is that globalization promotes inequality due to the uneven distribution of resources internationallyand unfair competition amongst economies and; thus, there it is imperative that leaders espouse nationalism over globalization. According to Irani and Noruzi (216), the general perception of globalization is that it constituteseconomic liberalization, westernization or Americanization, and the Internet Revolution. Multinational corporations as agents of globalization result in high profits which are disproportionately dispensed to the laborers who are offered pittances, and investors who benefit excessively from the effort of the laborers (Irani and Noruzi 217). These multinationals also possess unfair economic advantage that allows them to overpower local companies which often lack the suitable technology or sufficient capital investment to compete with such established corporations.
Results
The process of globalization has a universal significance in economic development, which constitutes a number of significant benefits.Different aspects of international trade are dependent on the successful relations between nations to advance. The mobility of the factors of production for instance through relocation in search of work and foreign investments would be hampered by national boundaries was it not for globalization. The current wave of globalization has had significant success in advancing the economic statuses of many countries in the world. There is need to promote globalization as it offers solutions to many socio-economic problems worldwide. Poverty reductions, such as in the case of India, the spread of environmental preservation awareness, and cultural acceptance and integration have resulted from the process of globalization. The introduction of multinationals into developing economies is presents competition for local industries however it is also provides foreign goods to local consumers.
Discussion
Globalization is a process that involves the participation of different nations in setting a foundation for international progress. The process may benefit some groups more than others and this is the reason for criticism against globalization. The first wave of globalization resulted in the First World War (Srinivasan, 2). However, it was characterized by significant progress in science and technology that set the foundation for contemporary innovation for instance the innovation of the steam engine. The current wave of globalization is an accelerated version of the first wave evidences the significance of such progress which will benefit subsequent generations infinitely. The benefits of globalization especially with regard to economic development are numerous and thus should be considered in the argument against globalization. Fashioning a global identity is important for overcoming political and cultural barriers and increasing association between different communities in the world (Irani and Noruzi 216). Interdependence between nations is a brilliant solution to political and social conflict that have prevalent in past generations. Mobility of labor and capital enables disadvantaged economies to benefit from the developed world through trade due to migration in search of employment opportunities in foreign countries and outsourcing of jobs to foreign countries with lower labor wages, and also due to foreign direct investments in the developing world. The increased amount of trade activity is also a factor in poverty reduction due to increased employment opportunities. Most developing countries, which do not reflect economic advancement due to globalization, are often affected by other problems such as those of governance and inefficient institutions (Srivansan 4). In arguing the importance of globalization of the developing world it is vital to assess the role of governance factors in the hindrance of economic progress.
Conclusion
In the contemporary society, globalization has become intertwined with economic development. However, there is constant debate in many different forums over the negative consequences of globalization, which threaten its continuity. Anti-globalization groups are concerned that the current wave of globalization which is an accelerated replica of the first wave, which led to the First World War, will have similar consequences on the socio-economic status of the world. It is impractical to alienate globalization from economic development from economic development as international trade which is a component of globalization has become a major driver of many economies. Global markets and the redistribution of the factors of production as well as commodities due to the process of globalization have advanced the economies of numerous nations in the world. The need for globalization is to find solutions to existent socio-economic problems such as poverty, cultural intolerance, and environmental degradation.
The thesis states that contemporary issues are a barrier to the continuity and extent of globalization based on the problems of socio-economic inequality and national sovereignty. To overcome such disagreement, it is essential to re-establish the importance and place of globalization in the contemporary society. The solution to the question on whether globalization is relevant, important, and necessary in the contemporary society is that globalization has become a part of the existing society and attempting to separate the two would have negative consequences. A country like China has benefited immensely from globalization with increased global markets for its products; discontinuing globalization would threaten the progress and even the continuity of such an economy. The criticism against globalization in different forums should be redirected toward making globalization a more beneficial process to the economies of the world and consequently to the global population rather than toward challenging the continuity of globalization.
Works Cited
Akram, Muhammad; Muhammad A. Faheem, Muhammad K. Dost, and Iqra Abdullah “Globalization and Its Impacts on the World Economic Development” International Journal of Business and Social Science, 2. 23 (2011): 291-298. Print
Irani, Farhad and Muhammad R Noruzi “Globalization and Challenges: What are the Globalization’s Contemporary Issues?” International Journal of Humanities and Social Science, 1.6 (2011): 216-229. Print
Srinivasan, Thirukodikaval N “Globalization: Is it Good or Bad “Stanford Institute for Economic Policy Research, Stanford, CA: Stanford University Press, 2002. Print
Teitel, Simon “Globalization and its Disconnects” Journal of Socio-Economics, 34 (2005): 444-470. Print
