Globalization and its Effects
Globalization and its Effects
Research revelations in (Lardy, 2002, pp. 87-103) hold it that those countries which embraced globalization experienced an average of 5% growth, while those that shunned the concept experienced varied degrees of decline. Regardless of its positive impacts, Globalization if mishandled in one way or another can spell doom to a nation; this is due to the powerful economic vulnerable position that it puts a country on. As the economy grows, and international boarders linked, so does the non-traditional threats of terrorism, heightened rate of the spread of infectious diseases (SARS and HIV/AIDS) and other cross-boarder security issues.
Globalization is an irreversible move and every nation has just to content with its effects, there is no short cut out of it; the best way to approach it therefore is to counter its effects and use them to the advantage of a national economy. Upon realizing this fact, the Chinese government went down into reconfiguring their economy to counter any negative outcome of globalization, for instance, it has affected reforms in the domestic banking and created diplomacy in defining international trade to at least protect Chinese interests (Susumu, 1999, p. ). Since globalization rolls the whole world into a single tiny village, the Chinese political big wigs have seen it necessary to consider the diverse effects that have in the past been not prioritized at all like; unregulated capital flows, cybercrime, epidemics, weapon proliferation and international terrorism. Top seed Chinese thinkers even believe that through the international institutions, globalization can be used to democratize the United States and reduce their unilateralist political power.
And if this concept is exploited well, China will grow into a rich and powerful nation, stable enough to shape the New World Order (Susumu, 1999, pp. 5-11). The Chinese economy stands to gain a lot in the current global direction that the nation is set on. With the current financial crisis, it does call for active international coordination to stay afloat and reduce incidences of worker lay offs. It will have mutual benefits for those who dare to fully participate in its drive.
By getting to know the measures that other countries have put in place to counter biting effects, China has found a compromise point and forge a way forward through the current economic hard times. If the nation fine tunes its capital market and effects banking reforms, then it will help the world emerge out of the current economic crisis and even those of the future (http://www. unu. edu/unupress/unupbooks/uu11ee/uu11ee0p. htm). Globalization has helped China to gain a significant economic growth through breaking cultural bondage and establishing policies that lead to liberalization in this modern world.
With the positivity that the nation has had on globalization, their current economic ranking rose to 7th from 32nd in the world, thanks to the integration with the world economy. The growth is attributed to increased corporate governance and human resource optimization. The positive effects of globalization as given in (Lardy, 2002, pp. 160-219) to the Chinese economy therefore include; strengthening interdependence in all nations, opening opportunities to bring into maximum use foreign capital and technology, promoting free trade that increase export trade.
Lardy also gives highlights of the negative impacts presented by globalization, which he says are the following, but not limited to; difficulties in maintaining economic sovereignty especially for the developing nations and widening the rifts between the well industrialized economies and the marginalized ones. Globalization brings into play varied practices hence leading to cultural mix up; this is worse in a society which values originality like the Chinese. Besides these, it also results to an intensified competition for limited resources and higher scale of interdependence.
To this effect, each and every person must acquire a way of coping up with the new development and adapt the new practices in the competitive environment. Traditional practices are most likely to be dropped in favor of new rules as individuals cooperate and coordinate with one another. To the Chinese government, they are currently down on what can be referred to as “system maintenance”. The nation has sought to have a stable relationship with its allies and foes a like as it feels that is the only way to rise above all the odds in the international system.
To this effect, it has improved the level of democracy, which has in turn boosted its relationship with former foes like Germany, Russia, E. U and France (Susumu, 1999, pp. 11-15). Such a move will help China to actively participate in multinational institutions and transnational economic structures which will put it in a good position to counter future financial challenges with ease. For whichever government in place, it must strive to establish significant policies that can speed up development in all sectors of the economy.
Even though globalization can cause a lot of hardships to the poor, it also opens opportunities to this group of individuals who dare to take advantage and turn the ills to their benefit. Poor people in this context refer to the recipients of public services, simple workers and those who frequently use common property resources to survive. With increased competition, the poor may find it hard to match high quality market standards hence falling out f business as production cost shoots or as the market price fluctuates.
Social protection is therefore mandatory to be effected by every state that intends to go the global way, and China is not left out (Bardhan, 2004, pp. 271-278). Globalization affects poverty directly and indirectly, the government in place should get down on programs for instance investing on public facilities like health, education, training and other economic and social infrastructure that will cushion the public from the negative effects of globalization.
These steps will go along way in reducing discrimination and market fragmentation in the society. Whilst the quality of life of many people will change for the better, some individuals will definitely lose it out. Globalization will present opportunities for everyone to grab and those who sleep on the idea and strive to maintain the status quo will be on the losing end. Resources drawn from every corner of the world will be made available; the same applies to technological advancement which makes things to be done much faster and easier.
But one negative outcome of this is that the introduction of too much mechanization from the outside world will drive people out of employment as companies strive to achieve efficiency and reduce the production cost. But despite the negative effects, if properly affected, globalization stands a chance in ensuring that the nationals have a quality life worth living (Bardhan, 2004, p. 284). The advent of globalization presented so much challenge to the CCP (China Communist Party). People were getting more and more enlightened, especially with issues concerning their civil rights.
Revolutions and a little bit isolated cases of political disability were therefore unavoidable and characterized the period. Labor standards became a thorny issue, as workers pushed to have their conditions be the same as those in the U. S. when labor barriers were eliminated production operations shifted directions to the U. S. The strain was not only felt in the labor market, the same was witnessed in the education, political, social and professional sectors which responded to accommodate the changes.
All these under the CCP had to be addressed as they developed a force which needed political direction (Ding Lu, 2003, pp. 23-37). But all these moves were out of a good cause as it has helped the country to stay afloat above surging challenges. The future of the move seems to be no different as the party will have to employ the same tactics of changing with the changes. And more complex will be the future non traditional issues on security like; having to deal with separatists, drug traffickers, smugglers, cross-boarder criminal acts, ecological and environmental issues.
Conclusion Globalization has been reported to be the force behind the robust economic growth in China as industrialization also took a centre stage in the country. But it is the imbalance in the international systems and national economies that are causing negative effects of the force. The financial crisis is not attributed to globalization and neither will it be the last straw to hit globalization, the government of China and all other world leaders should come up with mechanisms to coordinate the world market to strengthen their resistance to crises.
Globalization tries to act like blanket of neutrality over the international capital flow and power relations. The successes that the nation is enjoying now area as a result of ancient liberalization and the move should never be dropped, for it is the only way to keep China and the rest of the world abreast as they ward off economic pitfalls. The programs which are meant to reduce the pathetic situation of the disadvantaged in the society should not only be meant to accelerate economic growth, but also help these individuals.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 24 September 2016
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