McDonald's in Japan , French films being played in Minneapolis, and the United Nations are all representations of globalization. This means that instability may be greater as well. Technological change, international political hegemony, global normative convergence, and/or independent country reactions have all been cited as major causes of globalization. If one adopts the secular view of it, then little chance exists that the increasing contact and interactions among peoples and countries can be reversed. Globalizing capital. But it provides little consensus on the direction or magnitude of these effects. Others have argued that democracy may be enhanced by such international institutions. Some associate globalization with the homogenization of distinct groups; one example is the loss of many local languages and the increasing diffusion of the use of English. More recently, pressure for democratization has also come from these institutions. Global capitalism. However, even for these countries, it is not clear that within-country inequality has been reduced; the growing rural–urban divide in many developing countries suggests rising inequality. Political Aspect One of the political impacts of globalization was evident when Canada closed its borders to the U.S. due to the spike in COVID-19 cases of the latter country. World Bank. It plays the role of leader and others benefit from its efforts. Economic shocks, such as the 1998 Asian financial crisis and the 2008 financial crisis begun in the United States, spread across the globe rapidly. This stability provided the conditions for the development of private international capital markets, and over time these markets have come to dwarf those for goods and services. This allows for less focus on independent rights and economies and much greater focus on world events, local crises, human rights and global development, according to Global Policy. Inequality has thus risen in a number of developed countries. Countries thus aspire to introduce and develop them in order to be a part of the global community. It is important to note that technological change is not just about the economy; such changes have major ramifications for society, culture, and the polity. Due to the globalization of politics, it is possible for organizations to operate at a level that supersedes the state via political integration schemes, states Global Policy. The essay is adapted from a keynote speech delivered 11 March, 2011, to the Institute for Public Policy Research on the future of globalization. This outcome was not unexpected. Over time these can exacerbate, if not create, conflicts. The use of soft power has been perhaps more evident in the case of the United States. Some argue that it has helped spread democracy and put pressure on leaders to democratize. Standard models of trade suggest that in rich countries, high-skilled workers should gain the most from globalization and low-skilled ones should be the losers; this is the opposite of what should happen in the poor countries. To the extent that these forms and practices result in better outcomes, this process may be welcomed. Here the global leader seeks to maximize its own interests and uses its superior resources to bribe and coerce others into following it. But in a globalized world both of these may be compromised. In this widely held view of the coming political order, the eclipse of the national state is the central fact. - One of the main advantages of political globalization is that it has promoted a change of legislation, both national and international, to encourage aspects such as cooperation, the fight against climate change and trade. 14, 34). Why have some regions or peoples been more involved in this process than others? Put simply, globalization is the connection of different parts of the world. Some scholars see no effect of globalization on domestic politics; they claim that domestic political institutions filter and shape such external pressures so that their ultimate effects are a function of domestic politics. Even international law as developed in this period served to enable globalization as the European powers used it to force open the colonies. (Eds.). As they become increasingly intertwined in a global economy, states may lose the ability to manage their economies. Hence, more consideration needs to be given to the forms of governance required to shape a more health-oriented globalization process. Many expected that the integration of developing countries into the world economy would promote economic convergence—that is, it would make the poorest countries grow faster and hence catch up over time with the richest. David Held, A. McGrew (1998) defines political globalization as “the shifting reach of political power, authority and forms of rule. Globalization, in conjunction with its essential prerequisite of respect for private property rights, and thus the existence of substantial economic freedom in the various individual countries, has the potential to raise the productivity of labor and living standards all across the world to … Strange, S. (1988). Some research supports the idea that all of the policies increase growth; there is probably more evidence that trade and foreign investment support growth than does capital market liberalization. Interestingly, inequality seems to also have risen recently in the developed countries. In particular, cooperation where countries coordinate their policies to arrive at mutually preferable outcomes may be essential. Nongovernmental organizations also act on the international government stage without belonging to any specific government. Others are deadlocked by internal divisions. Globalization and technological change may then go hand in hand, each encouraging the other. It may induce the creation of international institutions that help states deal with these externalities and thus provide greater political capacity than otherwise. A large debate centers on the impact of globalization on poverty and inequality. Whether globalization is reversible or not is also at issue. Baltimore: Johns Hopkins University Press. We may now be experiencing the height of this period of globalization. Countries alone cannot successfully deal with them; they require changes in the behavior of other states. New York: Garrett, G. (1998). CEO Compensation and America's Growing Economic Divide. The states within the EU may now have greater capacity as a group to affect their economies than they did before joining the EU. (2008). Washington, DC: Author. Globalization thus sped up after 1950 because technological change accelerated. Nevertheless, 2.5 billion people in the world still live on less than $2 a day (World Bank Annual Report 2008, pp. Princeton, NJ: Princeton University Press. The global system, however, was divided into at least two blocs with the United States on one side and the former Soviet Union on the other; hence, globalization would always be limited in this Cold War system. Agreement on the nature of its effects on any of these is scarce. Globalization in these ways seems to be having a major impact on politics within developed democracies and to be generating a reaction against itself. While countries and their governments may try to put up barriers against such changes, it is very difficult for them to successfully fend off the pressures of globa… In part, this is because the North has had faster growth rates than some developing countries. The EU was a major force for movement in this direction; however, European countries joined and expanded the Union for reasons other than globalization, such as domestic politics or international security. The more surprising outcome has been that low-skilled workers in the developing world have not done better. This process can then influence the political system. Justin Kuepper. Substantial literatures exist on whether globalization has affected economic growth rates, poverty, inequality, democracy, conflict, state capacity, policy and institutional convergence, cultural diversity, volatility and the diffusion of crises, and balance of power between capital and labor. A COVID-19 Prophecy: Did Nostradamus Have a Prediction About This Apocalyptic Year? New York: W. W. Norton. State behavior can create negative externalities for others even in a system that is not very globalized. Has globalization gone too far? If right-wing parties represent business interests more, they may be strengthened by globalization. Effects of Globalization to Political Stability Globalization has been being associated with democracy for many political analysts say that in order to attain the optimal benefits of globalization one must first embrace democracy (Hewa & Stapleton 2005: 1-2). Globalization may awaken states to the need for organized cooperation. New York: Columbia University Press. Allowing or encouraging countries to become indebted and then imposing conditions on them when they are unable to service their debts has allowed international institutions to open the developing world to the global economy. Clearly, the spread of some ideas (e.g., democracy and human rights) is seen in a more positive light than the spread of others by some scholars (e.g., capitalism and neoliberalism). National power and the structure of foreign trade. In one, the hegemon, who has overwhelming capabilities in all areas relative to other countries, exercises a benign influence over the rest of the world by organizing and paying the costs for such openness and stability. The extent to which a truly global system—whether economic, political, or social—exists is a point of debate. New York: Simon & Schuster. The so-called skill bias associated with trade and foreign investment today often means that more highly skilled workers gain more from international integration than do low-skilled ones, which tends to exacerbate the degree of within-country inequality. On the other hand, international cooperation and international institutions may help states alleviate the problems associated with globalization. The question, of course, is what would be the costs and benefits of such a course of action and would governments be able to achieve any kind of meaningful autonomy or autarchy, given the technologies we now have and the public expectations about their connections to the rest of the world. Most countries in the world now belong to the World Trade Organization (WTO), the IMF, and the World Bank. New Haven, CT: Yale University Press. Its impact is profound. Ithaca, NY: Cornell University Press. But many of them have shown some ability either to prevent transnational problems for worsening (e.g., the WHO and the WTO in times of crisis) or to allow states to cooperate in order to better manage problems in a globalized world (e.g., the EU). While there are now numerous reasons articulated for this result, it is a problem for poverty reduction and equity in the developing world, especially since these countries by and large do not have well-developed welfare states. Peter Mandelson served four years as the European Commissioner for Trade . Democracy has certainly increased globally since the 1980s. The growing number of international institutions may also be a related concern. However, after 1945 the United States picked up the mantle from the British and began to forge a world economy through the creation of international institutions, an open economic policy, and an internationalist foreign policy. Why globalization works. The most important effect of economic globalization is that it curbs the authority of state. Many types of problems that have been endemic to countries for centuries have taken on a new perspective in a globalized world. International institutions that states voluntarily join and comply with may help them. International organisations including the World Trade Organisation (WTO) and the European Union (EU) superseded the nation-states to take the lead in decision-making (Haynes, 2003). It also leads to the migration of people across the world. By increasing contacts and interactions among countries and peoples, it helps make many issues transnational in character, rather than national. Others see an international economy beset by rising volatility over time, as crises multiply and spread. As noted above, for democracies this loss of control can be especially worrisome as it may induce a loss of public faith in the government and in democracy overall. Today they are less likely to be imposed through the use of force or conquest but that does not mean these pressures are less powerful. Other integrated organizations include the International Monetary Fund, the World Bank and the World Trade Organization. Some attribute it to the power of the world’s hegemon; some, to the increased vulnerability of states to the pressures of international institutions; some, to increased competition among states; others, to a learning process undertaken by countries. Many questions have been raised about globalization as an outcome that in itself needs explanation. The disappearance of many languages and the increasing use of English are two such examples. (2004). Since globalization is an ongoing process, definitive answers to these questions cannot be given. That is, does globalization weaken countries and erode their capacity to govern? With a global economy where capital can move relatively freely, it becomes advantaged domestically. Finally, there is much skepticism that capital market liberalization for developing countries is or has been good for economic growth. NOAA Hurricane Forecast Maps Are Often Misinterpreted — Here's How to Read Them. The so-called international capitalist peace is one example of this argument. (1996). Spread in part by military competition and imperial control, these technologies helped integrate distant regions of the world. 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