The Polarisation in the Globalisation Process

Categories: Globalization

The 20th century brought about huge economic, societal and political alterations of the modern universe. These major alterations are reflected in the increasing interconnection and the rise of large-scale interaction webs amongst states, and this world-wide tendency is known as globalization. ( Weiss, et al. , 2008 ) While we are familiar with certain benefits of globalization, this international phenomenon has besides been accused of doing polarization. The Merriam-Webster dictionary defines polarization as “ to interrupt into opposing groups. ” The separation of people into groups consequences from the links and relationships between states and how these states ‘ interactions causes differing societal impacts on people, either making new disparities or widening bing spreads and therefore driving people into contrasting groups.

Therefore, this essay seeks to look into, specifically in the economic context, whether globalization creates and widens disparities or reduces them alternatively.

Globalization and the broadening of Rich-Poor spreads

Globalizations chiefly causes polarization through the stereotyped labels that are imposed below the belt upon marginalised groups of people.

This all begins because economic development is a cardinal focal point of globalization and hence through planetary interaction and networking, we recognise our ability, and seek to better the fiscal position of every state with increased degrees of trade and dealingss. With this, there was an increasing demand for an index to mensurate how far a state has progressed in economic footings. Therefore, economic development is frequently discussed through the Human Development Index ( HDI ) as measured by the degrees of pecuniary wealth and criterions of life such as literacy rate and life anticipation.

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( Mayhew, 2009 ) While the HDI draws attending efficaciously to states that are in demand of fiscal assistance, in making so, the HDI besides unwittingly labels and stereotypes people and topographic points as ‘less developed, ‘ ‘developing ‘ or even ‘Third World. ‘ In contrast, other states are labelled ‘First World ‘ and ‘developed ‘ despite development being an ongoing and uninterrupted procedure and no part can be classified as to the full developed. ( Knox & A ; Marston, 2001 ) Through economic interaction, polarization of people into groups has become more outstanding with the labelling and negative premises that stigmatise people and topographic points. This causes the segregation of people and states into conflicting groups such as the more commonly known, More Developed Countries ( MDCs ) versus Less Developed Countries ( LDCs ) . Therefore, polarization because of labelling occurs due to the globalization of the universe economic system.

In add-on, as shown above, even though our aspirations are of good purposes, world shows that the most critical false belief of globalised economic development is how it is geographically uneven. Alternatively of uniting the universe and developing together, globalization of the economic system has merely served to foreground and rise the economic disparities between states and people. This is true as ‘the flow of people, goods and capital across boundary lines ‘ ( Pearlstein, 2010 ) consequence in technological alterations that creates a prejudice towards higher skilled labors. Hence, the rewards of higher skilled workers will lift faster than that of the less skilled workers. The rich people get richer while the hapless people get poorer.

GDP Per Capita of USA and Zimbabwe

The Gross Domestic Product ( GDP ) per capita of a ‘developed ‘ state like the United States of America together with a ‘developing ‘ state like Zimbabwe. GDP per capita is defined as an estimate of pecuniary wealth, in the value of goods and services produced, of each individual in the state. ( Black, et al. , 2009 ) Due to economic globalization, America ‘s GDP per capita is seen to increase aggressively from US $ 12, 186 in 1980 to US $ 47, 988 in 2008 while Zimbabwe ‘s GDP per capita increased somewhat from US $ 917 in 1980, top outing at US $ 1086 in 1982 before diminishing to US $ 274 in 2008. ( World Bank, 2010 ) These consequences show how globalization has vastly benefitted the USA while Zimbabwe does non profit at all. This reflects the above mentioned issue of extremely skilled labour versus less skilled labor and shows that due to globalization, the income polarization between Americans and Zimbabweans has been widening at an dismaying rate.

The citizens within developed states are non immune to economic disparities either. This is because a cardinal characteristic of globalization is capitalist economy. Capitalism refers to how economic growing is achieved through the free market system without intervention from the State. ( Cannon, 2009 ) Capitalism may profit all citizens of the state but some citizens really benefit more than others due to its encouragement of entrepreneurship, which more obvious when we look at the free market construction where there is freedom for monopolies to organize. Along with the accent on meritocracy platitude in many of today ‘s democratic provinces, workers “ in the lower strata of the labor market ” receive proportionately less rewards as compared to workers in the “ cognition rich sectors ” of the economic system because of the “ quickly lifting incomes ” of these occupations. ( Daniels, et al. , 2008 ) One of the several illustrations of this occurrence is Britain. During the globalization period from 1979 to 1991, the mean British income grew by 36 % while the income for the bottom ten percent of the population really dropped by 14 % . ( Daniels, et al. , 2008 )

Distribution of rewards in Britain

More than 50 % of the entire pay income is earned by the top fifth of the population while the underside fifth merely had a mere 3.4 % of the entire pay income. This great income disparity is non seen in Britain entirely. This phenomenon is besides a widespread job in other developed metropoliss like Singapore. Due to Singapore ‘s unfastened economic system, “ the lowest 20 % of family has seen their incomes per capita diminution from 2000 to 2005 ” while the income at the top is lifting quickly. ( Channel News Asia, 2007 ) Therefore, these illustrations are grounds that globalization causes income polarization “ between the skilled and the low-skilled, between immature and old, between those who adapt rapidly to the market and the remainder. ” ( Channel News Asia, 2007 )

Closing of the income spread through Globalization

Despite the above mentioned hurts, globalization has really brought people closer together through an improved conveyance web. Travel in the pre-industrial old ages before the 1980s was slow and difficult. The prevailing method of travel is to either walk or do usage of animals to transport themselves and what small properties they own, from one topographic point to another. ( International Monetary Fund, 2000 ) Globalisation, with its inflow of engineering get downing from the steam engine to the modern auto, has provided handiness and easiness of conveyance between topographic points and therefore created a ‘shrinking ‘ universe through increased spacial interaction chances. Shriveling here is non in a physical sense but how the universe has become smaller because of the velocity and simpleness to acquire to another location. In add-on, the income inequality exacerbated by economic globalization, specifically between urban and rural workers, acts as a push factor and ironically motivates rural workers to migrate to the urban metropoliss to look for occupations and earn more income. ( Fellmann, et al. , 2010 ) These economic migrators, be it internal or external migrators, are drawn by pull factors and have no pick but to relocate themselves in hunt of better economic chances.

Urban and Rural populations of the universe

Language is another illustration of how globalization assimilates the human race as a whole. It is the medium that allows interaction between people and since the Western states were the first to be globalised, other states who do non talk English but want to harvest the economic benefits that globalisation brings about, take attempt to larn English in order to pass on with their Western opposite numbers and obtain thoughts, cognition and engineering. ( Zahra ) Furthermore, English is efficient as a agency of communicating as it is known to be a “ asshole ” linguistic communication due to its ability to integrate words from other linguistic communications such as Spanish and Russian, making Spanglish and Runglish idioms severally. Therefore, globalization has homogenised and encouraged the usage of the English Language as a common tool of communicating, ensuing in English being the tongue franca of over a billion people in today ‘s modern universe as English is the common denominator in which international activities can go on. ( Fellmann, et al. , 2010 )

In visible radiation of planetary migration and linguistic communication, we realise that these are dimensions to economic integrating – one of the most of import characteristics of globalization. Economic integrating takes topographic point chiefly through ‘trade, factor motions, and communicating of economically utile cognition and engineering ‘ ( International Monetary Fund, 2000 ) and is influenced by the undermentioned factors from globalization: huge betterments of engineering and integration-friendly governmental policies. People act on what they perceive as benefits from economic integrating hence betterments have been made to communicating and conveyance engineering in order to to a great extent cut down the cost of transporting goods and people between topographic points. This allows for more merchandises to make a larger universe market.

Additionally, there are public policies that facilitate the informal integrating of several economic systems in a part. ( Marston, et al. , 2002 ) The Association of South East Asia Nations ( ASEAN ) for illustration, creates a common land where assorted leaders can come together to discourse economic schemes and ‘strengthen co-operation in East Asia, so as to prolong growing and prosperity for states all across the part. ‘ ( Association of South East Asiatic Nations, 2005 ) Through coherence, ASEAN creates a larger market than that of single states, a stronger planetary rival and an attractive investing finish for transnational companies. Another illustration of an economic axis would be the Asia Pacific Economic Cooperation. It is more than merely a trade understanding between states ; it is a shared involvement that targets at hammering more intimate economic cooperation among Asia Pacific economic systems. ( Drysdale & A ; Krieger, 2001 )

The last issue that comes with economic integrating is the addition of mutuality among states. Each state recognises their comparative advantage in a certain trade country and therefore chooses to specialize in bring forthing that good. Production specialization causes states to be more reliant on each others ‘ niche countries for advancement. These illustrations show that globalization, by agencies of market enlargements, remotion of trade barriers and mutuality, consequences in world-wide economic integrating that triggers ‘a reorganization of economic geographics, ‘ reduces polarization and compels states to collaborate and work together for a common good. ( Marston, et al. , 2002 )

Finally, we must besides be aware that poorness and inequality are separate issues. An addition in income inequality does non intend that there is an addition in poorness degrees. It can merely intend that the rewards of both the rich and the hapless are lifting, with the rich increasing comparatively faster. Hence, while the income spread may be widening, the whole universe is really better off.


Globalization is a dual edged blade that brings both benefits and hurts. As explored in this essay, globalization surely reaps more advantages than disadvantages. Even so, the advantages themselves bring about a whole new set of jobs. The old stating – when America sneezes, the whole universe catches a cold – gives us an thought about how globalization and mutuality might non be every bit rose-colored as it looks. The 9-11 terrorist onslaughts and the more recent Lehman Brothers bankruptcy and subsequent prostration in 2008 demonstrate how the full universe ‘s economic systems can be so vulnerable to misfortunate events go oning entirely in America. Nonetheless, income inequality can be solved every bit long as the pecuniary benefits from globalization is put to good usage like supplying better economic chances for the hapless. Therefore, initial jobs may happen due to globalization but they are finally solvable done globalization every bit good.

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The Polarisation in the Globalisation Process. (2020, Jun 02). Retrieved from

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