Globalization and Development, the indiscriminate link.
Definition of Globalization
The exchange of ideas, opinions, goods, products, labour etc. among the various parts of the world is essentially known as Globalization(Albrow, & King, 1990). It’s a new type of society which has brought people, their beliefs, cultures and practices closer to one another(Sorrells, 2013). There is no specific unanimous definition that is agreed upon by people. The global integration and governance have increased and this has led to the social and environmental development which is often termed as globalization(Dreher, Gaston, & Martens, 2010).
Definition of Development
‘Development’ as a term first came into use in the 17thcentury, it is a subjective term. The term can refer to progress, progression, social mobility, movement or growth.
Amartya Sen, a Nobel Prize winner development economist, defined development in 1980’s by including poverty and its different dimensions in it. The development of the UN Human Development Index was the also the fruit of his “capabilities approach”, as it focused on including the broader concepts of development. His view now widely taught, emphases that development is actually freedom of people to make choices regarding their capabilities, freedoms and the dissemination of such in the society on a broader scale (Barder, 2012).
Development can be approached instrumentally or normatively. The instrumental way of approaching development alludes to the definitions outlined by the modernization theorists according to whom development is economic growth and economic growth is GDP per capita. The normative approach to look at development reflects on the humane and humanistic dimensions according to which development is human development. Human development is focused on education health and living standards.
The meanings of development have been changing with respect to and its relation with theories of development. In colonial economics development means resource management (resource exploitation), in 1940s as modernization, industrialization and urbanization, in 1960s as dependency with the dichotomization of the world into core and periphery countries in which development of the core was contingent on the underdevelopment of the periphery, in 1980s in alternative development in which development was defined as basic needs and human development, in 1989s as neo-liberalism in which development was deregulation, privatization and currency devaluation, in post 1980s (post impasse period) the western nation of development was criticized under the paradigm of development as discourse in which development was criticized for being hegemonic, universalized and monolithic. These post 1980s approaches were termed as postcolonial, post-structuralism and post-developmentalism.
History of Development
Development as a concept has been in existence for a long time, as the concern to improve human lives was present among individuals. Aristotle discussed the concept as “improving lives” (Nussbaum, 1988), and Ibn Khaldun debated the concept of the ups and down in different cities a long time back (Alatas, 2013).
During the eighteenth and twentieth centuries respectively many scholars observed the pervasiveness of poverty in societies and how the issues related could be tackled with.(Ravallion, 2011).Theoreticians of the like of Hume and Smith all started the discussions on the attainment of growth through the progress of economy and the spread of wealth. The main concern of all these was to achieve an improved society beginning at the grassroots level(Currie-Alder, 2016).
After the Second World War decolonization began and newly independent countries were found to be economically exhausted. Harry S. Truman (1949), President of the United States gave a four point plan outlining that the developed world would join hands with the developing to assist them in development. The period also experienced growth under the dimensions of poverty, economy, trade, infrastructure and governance by the local heads (Currie-Alder, 2016)..
History of Globalization
Globalization began back in the 1600s from the earliest of the civilizations and it is used to symbolize the interrelationship and origination of communities(Martell, 2010). Previously the interaction between societies wasn’t easy but the immense progress in the technological fields have led to a decrease in the distances between people. This connection has also made people dependent on each other which now has morphed into trade. This factor was actually one of the driving forces behind globalization. If it wasn’t for trade and the fact that the countries opened up their borders for trade, countries would still have been dependent on the production of their own goods.
After the advent of early modern globalization, modern globalization came into being and had the principles of the management if global trade and the information exchange that took place with it. The examples of such are the East India Company. Although globalization came to its pure modern form after the Industrial Revolution as circulation of goods took place then.
The culmination of World War II led to the formation of Bretton Woods Conference and as a result chief most governments signed the agreement for international monetary policy and other organizations so the trade barriers could be lowered.
Advantages of Globalization and Development
In continuation, I would like to add here the pros that we are able to experience because of the rapid Globalization.
Globalization has been linked with global governance because that will lead to better global markets and that will in turn help in fighting the prevailing global poverty ("Globalization", 2017).
The biggest advantage is the Industrial growth that has taken place. Industries have been set up and advances are being made in the sector. The technological sector has faced a boom as well. Let’s discuss aviation as it helps in diminishing the gap between the different countries and the technology itself has become cheaper ever since the 1970s, and this has made it easier for middle classes to afford it. As a result, competition has been brought to the market from all over the world. Different policies and the low-cost rates at which the carriers fly have helped in the process of trade. This technological advantage is not just restricted to the aviation, but also holds true for most of the other technologies. You can work effectively and efficiently using a laptop now as compared to before. Mobile phones make long distance calls easier and people have become more accessible now. The technology that is introduced in USA will quickly become available for the rest of the world, take examples of the different brands of smart phones and how they spread quickly(Ejim, 2017).
The programs like UGRAD and others of the alike have become popular now. These student exchange programs are trained to promote healthier relationships between the members of the countries involved, along with the tolerance for other cultures. Up till 2006 the students studying in foreign countries has increased by 9 times(Varghese, 2008).
The migration of people for work has also been one of the biggest impacts of the global world. The migrations mostly are by the residents of the developing world especially till 1990 (Saggi, 2002). Never the less Social Media has played a vital role in interlinking people across the world and making this world a big global village with more than one third of the world’s population having used it (Tresse,1995).
The proponents of globalization residing in the developing world believe that it increases diversity and decreases poverty (Bhagwati, 2004). The opponents focus on unemployment and environmental degradation. But the most prevalent view is that it is beneficial for the society as a whole (Sen, 1970).
Disadvantages of Globalization and Development
Globalization, on the other hand, has faced some serious backlash as well, mostly because of theeconomic hurdles arising. The developed part of the world is experiencing the advantages of this as their economies progress rapidly (DHL, 2014.) But the same cannot be said unfortunately for the developing parts of the world. The food crisis of 2008 and the financial crisis of 2009 have shown the negative aspects of the globalizing world ("Globalization", 2017). Studies conducted by different organizations have been able to validate this fact. In 2008 articles outlining the shortcomings of Globalization (Fiss& Hirsch, 2004)and this decrease has been explained on the economic terms. Poll conducted by BBC found that globalization was taking place on the economic level and the process was also an extremely fast one (BBC World Service, 2008).
As this globalizing world brings people into contact with people of other nationalities and cultures and some theoreticians believe this can lead to Xenophobia, that is the fear of something foreign and unknown. This fear can curb into feelings of aggression, hostility, suspicion and even hatred sometimes (SAGE, 2002.).
The other critiques of globalization include the impacts of such on the lives of the people. Measures like GDP have been challenged because they only measure a set standard or economic growth. Theoreticians believe that we need to include in our studies issues like Human Development and how globalization has an adverse effect on them. Gini coefficient and the Human Development Index are the new more preferred ways to measure impacts on the lives of human beings. These measures encompass in them issues like poverty, social marginalization, environmental degradation, and spread of diseases, especially the different pandemics like Bird Flu, Ebola etc. that are prevalent in the world because according to some beliefs all these are one way or another are unintentionally linked to the Globalization (Capra, 2002). On the other hand the globalizing process has also led to a rampant increase in the western style of democracy. This has further resulted in inter-ethnic conflicts and violence as the free market economic policies are combined with democracy and the effects that has on the resolution of different conflicts (Sorrells, 2013).
The Link
The interrelationship of Globalization and Development are also vital to be looked upon. It is the main ingredient for the growth of economies in this day and era. The transfer of people across borders has led to a transfer of ideas, knowledge, and experience in the fields and of course labour has increased in the developed part of the world as a subsequent result. This also means that there are more chances for people to conduct business activities with and outside their countries. Trade opportunities grow and benefits are shared by the majority of the developed world.
Along with technology transfer, skill transfer also takes place. People from different countries when migrate take with them different skills that then become helpful for the country that they immigrate to. Professionals of fields in medicine, engineering, e.tc help the host country.
These people often help to develop the economies of their host countries by utilizing their various gifts and expertise of the specific fields.
Another relationship between globalization and economic development is that it has led to the increase in trade between various countries. It has made it possible for a country to sell its goods and services to countries located in different corners of the globe and for that same country to purchase needed goods and commodities from other countries. For instance, countries in the west that do not have crude oil can purchase the commodity mainly from countries in the Middle East and Africa that have huge reservoirs of oil deposits. The countries selling the commodity can benefit in terms of increased financial resources.
Conclusion
It is clear from the aforementioned debate that Globalization is not just economic growth but something way more than that.
In a nutshell it can be said that Development and Globalization walk hand in hand and can’t be separated now, in this day and age. The places which have not been effected by Globalization either don’t exist anymore or are facing day to day increase in their problems and for them to survive they would sooner or later have to adapt to the conditions of the modern world.
The world has become a global village and hence the changes that took place in it have spread all across the borders in all countries. The development paradigm of globalization as mentioned earlier makes it clear to see that without globalization development is hardly possible. We need the technologies for our day to day works. Effective health facilities and medications and improved as compared to what they were a decade ago. The educational setups that are existent today, especially in the developed part of the world, could only have been materialized if globalization was utilized effectively. All these processes and much more are fully dependent on the global village.
Countries in the developing parts of the world can take their due advantage out of Globalization if they decide to do so. Job opportunities will be created when resources are efficiently utilized. Poverty reduction can take place if we pay more heed to this process.
