Old Phenomenon, New Perspective

March 12, 2007—Although globalization has only recently become an economic, political and social buzzword, it's not a new phenomenon. Caravans dating back to the ancient Silk Road, with their exchange of fabrics and spices between distant lands, were forerunners. Explorers such as Marco Polo and Ibn Battuta were pioneers of globalization, facing death and danger in their quests to explore new territory.

But today, as the world skyrockets into the 21st century, globalization takes on a new meaning. It might mean sitting in your living room in Estonia while communicating with a friend in Zimbabwe. It might mean taking a Bollywood dance class in London. Or it might be symbolized in eating Ecuadorian bananas in the European Union.

Whatever it means to you, globalization is a hot topic because it's happening at an unprecedented pace and scale in human history. Check out the Youthink! issue brief on globalization for an overview of what globalization means and its impact on the world both past and present. 

The Big Issues

Our world is shrinking every day, thanks to more trade between nations and faster and easier travel. And the smaller the world gets, the bigger the repercussions of globalization seem to be.  Here are just a few of the key issues linked to globalization.

Migration

Only a few decades ago, traveling abroad from the Indian subcontinent was so rare that the adventurous traveler's entire family would accompany him to the airport along with much pomp and circumstance, including occasionally a brass band, to bid him farewell.

Today, people think nothing of having breakfast on one continent and dinner on another. And many people go abroad to work, either permanently or temporarily. The money they send home (known as remittances) helps their families and boosts their home country's economy.

On the other hand, greater international labor mobility increases risk of "brain drain." But several developing economies are attracting their educated citizens back by creating good business environments for people to use their entrepreneurship.

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Trade

Trade drives globalization. Modern transportation and telecommunications have made it easier to export to and import from far-away places. But international rules, regulations, and practices can still make it difficult for developing countries to compete against developed nations.

Dumping. For instance, some manufacturers "dump" goods in other countries at prices lower than the goods can be manufactured, undercutting local producers. One example occurs when farmers who receive subsidies export surplus crops and drive down international prices

Market Access and Regional Trade Agreements. Countries often try to protect their industries by imposing taxes on goods from other countries. These import tariffs make imported goods cost more and make it harder for poor countries to compete in richer markets.

Regional Trade Agreements (RTAs) are transnational trade deals, and are becoming increasingly widespread. A regional free trade agreement removes all barriers to trade. Unfortunately, when these agreements happen between developed and developing nations, they often don't benefit the weaker economy. Poorer countries can't develop their own industries with cheap imports from rich economies entering their markets. To ultimately reduce poverty, international trade negotiations need to uphold the interests of poorer economies.

Labor Rights. Globalization has brought millions of people into the workforce and raised living standards in developing countries. But some believe it has undermined labor standards in richer nations, and increased pressure to work faster, longer or for less money. 

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Overall, global trade has grown dramatically over the past three decades, and developing countries are important players in the global marketplace. Their share of world trade has increased greatly over the past 30 years.

China's share of the global marketplace has risen to 3.5%, double what it was in the mid-1980s. India and several Latin American countries seem ready to make similar jumps in global trade.

Health

Globalization has had dramatic effects on health. Treatments for diseases such as HIV/AIDS are more widely available, and their prices have fallen thanks to international agreements. Modern medical equipment to detect, measure and treat known and emerging diseases is being used all over the world.  The Internet and e-mail spread knowledge of health issues, while global action among national institutes, international bodies, and civil society is helping to increase awareness, monitor developments and create solutions to health problems.

On the other hand, cross border travel more easily spreads AIDS, SARS, and other infectious diseases, and could hasten a pandemic. The movement of meat and poultry products spreads diseases such as mad cow and avian influenza, especially in countries where regulations are weak and food standards are poorly enforced. Globalization also means that harmful products, such as cigarettes, can wreak devastating consequences worldwide.

The movement of qualified health professionals from developing to developed countries has weakened the health systems of some developing countries, which now face shortages of qualified health providers.

Environment

It is said that the movement of a butterfly's wings can create atmospheric changes that could cause a hurricane at the other end of the world. But did you know that a brown tree snake from Australia can cause power outages in Guam (see photo)? Find out more in the 100 of the World's Worst Invasive Alien Species booklet (pdf).

International travel, trade and transport have become leading causes of Invasive Alien Species (IAS). While many of the species that reach new lands do not survive in their new environments, others thrive. Left unchecked, they can transform entire ecosystems and even threaten other species to the point of extinction. Globally, the estimated costs of invasive alien species are around $350 billion.

But globalization is linked to the environment in many other ways. Strict environmental regulations in some countries lead corporations to move their operations to countries with less stringent rules. In other cases, free trade agreements prevent governments from adopting legislation to protect the environment. Destroying forests to produce timber and crops for consumers in other countries is another example. Climate change, of course, is a big issue associated with globalization, as it affects everyone, and it is in every country's interest to combat the threat it poses.

Culture

Thanks to globalization, we know much more about other cultures today than people did in the past. It has opened our minds to other ideas and traditions, and has made this a very exciting time for our generation. However, many argue that globalization merely equals westernization. Some fear losing their values and languages to external influences and are threatened by the influence of other cultures on their own.

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Good or Bad?

Globalization can be "win-win" for developing and developed countries alike. Populations are aging in the wealthier countries, but they still have a lot of capital and technology. Developing countries have large and young populations and need to create massive numbers of jobs over the next few decades.

Globalization can benefit both rich and developing countries if it supports the movement of capital and technology to poorer countries and the movement of some labor to the developed world. This will not be easy, of course, but the key to successful integration will lie with creating appropriate institutions and policies.

On the whole, we live in a much more integrated world as a result of technological advances in transportation and communications (such as the Internet). For example, a natural disaster such as the Asian tsunami is quickly known all around the world and people from far away send help. So, integration has created more of a global community that did not exist in the past.

How to Jump on the Global Bandwagon

There are mixed views about globalization, but if harnessed in the right direction it can be tremendously beneficial to developing countries. It helps countries to:

• Work toward macroeconomic stability that would create the right conditions for investment and saving
• Create structural reform to encourage domestic competition
• Create strong institutions and an effective government
• Promote education, training, and research and development to promote productivity
• Engage civil society in all these processes

Developed countries can contribute to low-income countries' efforts to integrate into the global economy by promoting trade, encouraging flows of private capital to the lower-income countries, and supplementing faster debt relief with an increased level of financial support.

Globalization and You

The mere fact of your reading this article, along with hundreds of other Youthink! readers around the globe, makes you a global citizen, riding the wave of globalization. What is the impact of globalization in your country? What do your elders and peers say about it? Enter your vote on the poll, and send us your ideas about the mammoth force of globalization.

 

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