Advantages and Disadvantages of Globalization
When we start looking at international community development through the rise of globalization, the formation and impact of an initiative can be fraught with both opportunities and challenges. Although there are many examples of both, presented here will be three disadvantages followed by three advantages that globalization brings to the international development arena.
Although a term like ‘international development’ seems to construe a positive image, it can also cause grief and hardship. One such example involves the shift of non-skilled and skilled jobs to developing countries from their previous home of the developed countries (Breedon, n.d., p.9). This shift is pre-empted by the corporate world that determines a better cost effectiveness in moving operations. This may be evident in the car manufacturing world where the city of Detroit is now more or less a ghost town. A second challenge centers on the core of power in the world; organizations such as the World Trade Organization are beginning to hold more power and are, thus, infringing on the autonomy of both nations and individuals (Breedon, n.d., p.9). There are many criticisms of the WTO with one being that many ‘south’ or developing countries feel jilted with regards to international trade; countries such as many African nations feel that only the ‘north’ or developed nations seem to really benefit financially with respect to multilateral trade (Shah, 1998, para.12). A final hurdle raises concern about our global environment, with corporations quick to make billions and not being restricted by regulatory pollution laws in ‘south’ countries such as China, our air and water quality are the ones to take the real hit Breedon, n.d., p.9).
Now to shift focus towards the incentives that support international development under the umbrella of globalization. Investors can pour money into developing nations like never before due to the increased liquidity of their capital (Breedon, n.d., p.9). This is evident in countries like China who have seen a dramatic difference in their unemployment rate in the past decade; in 2004 the unemployment rate was approximately 10% whereas by 2009 it had dropped to 4.3% (Barrientos & Soria, n.d., p.1). One vital piece of technology that has added to the ease of development internationally has been the increased flow of communication which allows for the sharing of essential information between corporations and their overseas employees (Breedon, n.d., p.9). This vital communication link ensures greater prosperity for the corporation as clear communication can reduce production error for one thing. Finally, one more motivation for supporting globalization is the ‘global village effect;’ which is promoted by the reduction of cultural barriers (Breedon, n.d., p.9). As an example, “Billions of people (and dollars) are enmeshed in global social networks creating a global village effect faster than any phenomenon to date” (Samresh, n.d., para. 8).
Globalization is here to stay and ever increasing. It will be those of us who learn to roll with it that comes out ahead. According to Kofi Annan, a secretary general from Ghana, he promotes, “The world around us is changing, and we change with it or we will be left behind. We have to adapt to the realities outside … It has been said that arguing against globalization is like arguing against the laws of gravity” (Crossette, 2000, para.16 & 32).