Effects or consequences of globalization.
Discuss the effects or consequences of globalization.
Effects or Results of Globalization:-
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Effects or consequences of globalization.
While reviewing the impact of globalization in the international arena the following salient points can be highlighted.
1. Disparity between developed and developing world:- Globalization has widened the gap between the developed and developing world. Globalization policies adopted by the International Monetary Fund, the World Bank and the World Trade Organization have created disparities in favor of the developing Third World. As a result, third world countries have become dependent on developed countries. According to Edward S. Harman, the income gap between the richest and poorest 20 percent of the world's population has increased from 30:1 in 1960 to 82:1 in 1995.
2. Application of Trade Related Intellectual Property Rights (TRIPS):- As a result of the agreement on trade-related intellectual property rights enforced by the World Trade Organization to implement the principles of commercial globalization, developing countries have raised doubts about the extent to which developing countries can reserve patents, copyrights, trademarks, trade secrets, etc. Moreover, they are not able to survive in the competition with developed countries in these fields.
3. The corporate world is dominated by multinational corporations (MNCs):- Due to the adoption of Trade Related Investment Measures or TRIMS as a result of globalization, multinational organizations or the corporate world have dominated the international arena. The system requires WTO member states to comply with a number of provisions that allow multinational corporations to expand their authority. It is worth noting that multinational companies belong to developed countries. Among the world's largest multinational companies, 61% are American companies, 33% are European companies, 2% are Japanese companies. All over the world, these largest multinationals have been able to expand their dominance by taking over small firms in developing countries through acquisitions or mergers.
4. Neo-Colonial Economy:- Globalization has led to the emergence of neo-colonial economies in the international arena as the World Trade Organization became the focus of developed and rich countries. Developed countries have taken an entirely negative view of commercial expansion in the developing world. This results in continued exploitation of poor countries by rich countries.
5. North-South conflict:- The way the World Trade Organization under the control of developed countries continues to put pressure on developing countries regarding regulations on labor costs, adoption of policies related to uniform labor interests, reduction of subsidies in the agricultural sector, etc.; This resulted in a North (developed) versus South (developing) conflict. According to international relations expert Mogens Buch Hansen, the rich world is getting richer while the poor world is getting poorer while following the liberal economic path dictated by the World Trade Organization.
6. Results of Structural Reorganization:- As a result of the structural restructuring of developing countries under the direction of the International Monetary Fund, the World Bank and the World Trade Organization, the process of massive retrenchment, layoffs, lock outs, privatization of the state-owned sector, contraction of national income, etc. continues. As a result of this structural realignment - unemployment, poverty, financial and social insecurity - have increased. As a result, the most affected are the backward and weaker sections of the society.
7. Implications of cultural equality:- As a result of globalization, efforts are being made to create cultural equality across the world. The distinctiveness of regional and national cultures is being undermined by the continuous promotion of a commoditized consumerist culture with the help of sophisticated mass media including the Internet. Globalization seeks to mold cultural traditions into one mold and impose a kind of cultural homogeneity. Many have called it the American McDonald's culture. As a result, the diverse and multifaceted cultural heritage of the Third World is facing a crisis.
8. Crisis of nation-state sovereignty:- Many people think that the crisis of nation-state has been created due to the impact of globalization. State sovereignty ultimately applies to state institutions and citizens within its defined territory. Globalization is believed to have eroded this geocentric omnipresence of the nation state and transformed the state into a market-centric organization. In fact, in the background of globalization, state-controlled institutions have gained the opportunity to function without being controlled by the state.
9. Wide spread of environmental pollution:- As a result of globalization, many of the industries and factories developed by multinational companies in different countries of the world, especially in third world countries, can be identified as environmental pollutants. Among these industries, the organic chemistry industry is particularly noteworthy. As environmental protection laws are strictly enforced in developed countries, multinational corporations have been particularly careful in developing polluting industries in third world countries.
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