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There is widespread discussion as to whether globalisation is a new or an old phenomenon. Some analysts consider the concept to be new as well as revolutionary. Others including Kenneth Waltz argue that, in comparison to the era prior to the first world war, the current global set up has underachieved in terms of the level of intensification. Furthermore, earlier governments especially prior to the First World War had less intervention in economic matters in comparison to the contemporary government.
The aforementioned points, though valid, do not denounce the fact that capitalism has recommenced a vigorous pace of global integration that was affected by the interwar of between 1918 and 1939 and the Cold War.
The degree of consolidation of the global production systems and disengagement of nations from economic activity may still be below the levels achieved in 1910. However, the level of integration may surpass that of 1901 if globalisation continues at its present rate.
(Scholte, 2001). The welfare system that dominated since the interwar years of the 20th century has declined.
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As a result, a new vision in global order that is designed along the wisdom of Milton Friedman and Friedrich Hayek has emerged. According to Hayek, for example, the concerns of social imbalance are mere indication of the outdated communalistic idea which should be scraped out and replaced by individual responsibility and freedom; the issues of poverty and inequality not withstanding.
Again, there is an increase in the perception that national economies have integrated into a common space of world economy and that there is only one suitable form of organisation.
The realization of a single global economy has still a long way to go. However, there is a powerful force propelling the world to that direction. (Tehranian, 2001) There is also widespread controversy over the aspects that promote globalization. Obviously, technological development has contributed to the intensification of interdependence. However, it is not substantial to claim that technology, by itself, would precipitate globalization.
For instance, it is unclear whether capital mobility would be realized from technological advances alone although developments in communication technology together with the deregulation of capital flows have improved capital mobility. Some sectors agree that globalisation is modelled by the forces of the market system. Nevertheless, an economic system cannot be realized without a political system in place. In addition, globalisation is dictated by the acquiescence of governments and in particular the United States hegemonic power as well as other developed nations (Friedman, 1999).
Adherent of the market system argue that globalisation is pressured upon governments such that they cannot stand in its way without incurring immense costs. The interests of powerful capital are in a position to punish national governments which implement monetary and fiscal policies that impact negatively on their visions. Therefore, developing countries have sided with capital as a result of pressure from governments of advanced nations and the multilateral agents of globalization. Capital has captured the attention of most nations’ governments.
It is unlikely that the world economic order projected by globalisation would be realised in an atmosphere where labour is structured to counterbalance the influence of capital on governments. Powerful nations like the United States can prevent it if they choose to do so or if there is an alteration in the balance of power among social classes within the powerful nations. The death of globalisation in the nineteenth-century due to, mostly, political pressure, adds to the point that globalisation is not a passing wind that is controlled by merely the technological advancement and market forces (O'Rourke and Williamson, 2000).
Globalisation As Phenomenon. (2020, Jun 02). Retrieved from https://studymoose.com/globalisation-as-phenomenon-essay
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