What is Globalization

Globalization

International trade is the act of exchanging capital, services and goods across international borders or territories. It is believed to have served as globalization foundation. Though economic, political and social value of international trade continues to be on the rise in the recent years, there has been tremendous challenges in regard to states attempting to control globalization (Acemoglu and Robinson, 2012). This gives rise to a couple of debates based on issue that State Intervention attempts to control globalization only to foster inefficiency and impede growth.

According to Stiglitz (2013), despite talks held for a couple of years regarding international trade, still there is no agreement that is viable. There is speculation though that these talks have veered off-course and they focus more on management of free trade concept in the attempt to server personal interests. There is also the indication having control over globalization never focuses on overall benefits and challenges that have effect on all nations but rather on specific countries. This will in turn lead to stunted growth and inefficiency growth particularly to developing nations.

Failure of Doha talks is attributed to the fact there is no one state or country that can be given authority to control globalization (Schwab, 2011). Regardless of whether the country is developed or developing, they would desire to control globalization as it helps them drive their economies to higher heights. In turn, this would lead to stunted growth as well as great inefficiency. According to Barret (2006), globalization and its effects have great influence on all countries and control of globalization cannot therefore be limited to one state.

Clearly, it is evident most countries rely on international organization in dealing with issues that relate to international deals like conflicts (Abbot and Snidal, 1998). In this regard, giving power to single states over globalization can take advantage of other nations in terms of solving issues that result in inefficiency and poor growth. Over the years, since introduction of international trade, a large number of economists have expressed different views some of which were in support of the idea and others who were not. However, out of all these, none has ever supported the idea of a single state been given power to be in control of globalization (Kindleberger, 1986).

The crisis in Europe, according to Garton, is traceable to the notion of globalization. This is based on the fact after formation of the union, borders were opened and there was no trade control except at national levels. However, states did not have proper policies in place in regard to international trade playing a crucial part in influencing the crisis. This proves that without any proper measures of control in place, the notion of globalization can have very serious effects on all countries.

Though the policies in place in regard to globalization and/or international trade are focused on free trade across the borders, they fail to emphasize on how such control of globalization concept can be handled (Calomiris, 2002). This indicates the notion of globalization should not be limited to any one state. However, the policies put into place should be reviewed in order to come up with control that is better at global levels.

Capitalism from general perspective is looked upon by economists as a means of taking control over given resources (Chang, 2010). This would be the case in an instance where a single state has control over basic globalization concept. What is more, this serves as a great indication that both development and growth will be hindered and that the notion of resource sharing will not be efficient.

The basic globalization idea was to attempt to come up with an ideal way of dealing with poverty (Sachs, 2006). In this case, the notion of giving control to one state would prove to be an impediment to attainment of the goal. Sharing resources that could be scarce in one nation and bountiful in another is among the primary international trade drivers (Ferraro, 2008).

As such, giving globalization control to one state would end up limiting how resources are applied or distributed in coming up with services and goods. In turn, this would serve as an ideal platform for efficiency in the growth and trade of economies especially to developing nations.

In relation to developing nations, there has been intense speculation that if it was not for western nations and more developed countries, they would not have any growth avenues. However, economists have argues this is far from been the case and where there is a developed country assisting a developing nation, the basic idea is for the developed country to benefit as well as further develop and grow (Easterly, 2006). On top of this, the basic factors that serve as drivers for economic growth are looked upon as resources, however, when they are not put into good use, they are deemed useless. Majority of the developing countries need help in relation to putting resources into effective use as such, they are reliant on international trade and on globalization (Sachs, 2012).

References

Abbott K. and Snidal, D. (1998). “Why States Act through Formal International Organizations.” Journal of Conflict Resolution, 42 (1)3-32.

Acemoglu D. and Robinson, J. (2012). Why Nations Fail: The Origins of Power, Prosperity, and Poverty. New York: Crown Publishers. pp. 70-96.

Barrett, S. (2006). “The Problem of Averting Global Catastrophe.” Chicago Journal of International Law, 6 (2) 1-26.

Bhagwati, J. (2004). In Defense of Globalization. New York: Oxford University Press. pp. 3-28, 51-68, 221-228.

Calomiris, C. (2002) “A Globalist Manifesto for Public Policy: The Tenth Annual
IEA Hayek Memorial Lecture.” London: Institute of Economic Affairs.

Chang, H. (2010). 23 Things They Don’t Tell You About Capitalism. New York: Bloomsbury Press. pp. 242-264

Easterly, W. (2006). The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good. New York: Penguin Press. pp. 37-59.

Ferraro, V. (2008). “Dependency Theory: An Introduction,” In Giorgio Second ed., The Development Economics Reader. London: Routledge. pp. 58-71.

Garton, T. A., (2012). “The Crisis of Europe.” Foreign Affairs, 91 (5): 2-15.

Kindleberger, C. (1986). “International Public Goods without International Government.” American Economic Review, 76 (1)1-13.

Sachs, J. (2006). The End of Poverty: Economic Possibilities for Our Time. New York: Penguin Books. pp.51-90.

Sachs, J. (2012). Government, Geography and Growth: The True Drivers of Economic Development. Foreign Affairs, 91 (5)142-150.

Schwab, S. (2011). After Doha: Why the Negotiations Are Doomed and What We Should Do About It. Foreign Affairs, 90(3)104-118.

Stiglitz, J. (2002). “Globalism’s Discontents”, The American Prospect Volume 13, Issue 1 and “The Free Trade Charade”, Project Syndicate.