Abstract: One of the most polarizing debates in the world today concerns the effects of globalization. Some of the principle reasons for this is that: a) most people are locked into preconceived notions (Barnevik, 2001), b) the inability to keep a long-term perspective on the effects of globalization, and c) the inability of people on both sides of the debate to see the gray aspects between what they perceive as being black and white. Most scholars agree that the phenomenon of globalization is an irreversible one. Globalization has been occurring not only in the field of economics, but also in political and socio-cultural arenas. The ills of globalization have been widely publicized by the vociferous opponents of globalization. However, while many of their arguments are well founded, it is more prudent to understand the reasons for some of the problems of globalization and tackle those issues to minimize their negative impact. In addition, it is important to build on the advantages of globalization and ascertain that a much larger population of the world benefits from the economic, political and social process of globalization. To fully realize the potential benefits of globalization, certain steps need to be taken at three levels: local (country-level), regional and international levels. The economic disparity between similar neighboring countries such as North & South Korea, Thailand & Myanmar, and Chile & Peru will be minimized only by ardent efforts on all these levels. The information technology (IT) and the second industrial revolution that are taking place today are restricted to only a small part of the developing world and, in many cases, to certain small sections of the populations in the developing countries. Until the positive effects of globalization becomes more widespread, the debate on globalization will be understandably won over by its detractors despite the overall long-term advantages of globalization--minimizing poverty and increasing the possibilities of democratization. At the country level, the first thing many countries need to do is to create a true market economy where open competition and independent government are the norm. All countries in the developing world, and many countries even in the developed world, need to work hard in establishing a true market economy. Across most nations, the governments need to demonstrate strong and responsible fiscal policies that will instill confidence among investors. There is also a need for the governments in developing countries to eliminate corruption and bureaucracy, while providing a fertile ground for foreign investment in their countries. In developed countries, the political leaders need to have the fortitude to convince their populace of the advantages of minimizing/eliminating subsidies in certain domestic sectors of their economy. Tariff and non-tariff barriers (e.g. the CE Mark in Europe) by the developed world have prevented many developing countries from fully participating in the global economy. These barriers have also negatively affected the people in the developed world, since they prevent them from buying commodities at the cheapest price in the global economy. The demographics in developed countries are often used to defend the tariff and non-tariff barriers. Instead of considering the phenomenon of low birth rates and consequent rapidly aging populations as a disadvantage, developed countries need to view this as an advantage. These countries need to pioneer products and services for this typically affluent section of the population and tap into the global market among the elderly. Also, many developed countries need to focus on improving the productivity in their service industries which will automatically move more of the industrial sectors to the developing countries. Thus, improving service productivity will help both developed and developing countries. Apart from the possible exceptions of countries such as the U. …
Publication Year: 2003
Publication Date: 2003-01-01
Language: en
Type: article
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