Arguments against Globalization

This paper has presented arguments against globalization, including economic imperialism, hindering economic sovereignty and increasing economic inequality. However, it is important to note that the debate on the effects of globalization is ongoing and there are counterarguments that suggest globalization has benefits for developing nations and that the claim that it increases inequality is debatable.

Running head: ARGUMENTS AGAINST GLOBALIZATION
Arguments against Globalization
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1ARGUMENTS AGAINST GLOBALIZATION
Table of Contents
1. Introduction..................................................................................................................................2
1.1 Background............................................................................................................................2
1.2 Thesis Statement...............................................................................................................3
2. Supportive argument to the thesis statement...............................................................................3
2.1 Globalization and economic imperialism..............................................................................3
2.2 Globalization and economic sovereignty...............................................................................5
2.3 Globalization and economic inequality.................................................................................6
3. Counter argument........................................................................................................................7
3.1 Globalization and benefits to developing nations..................................................................7
3.2 Claim that globalization increases inequality is debatable....................................................8
4. Conclusion...................................................................................................................................8
5. References..................................................................................................................................10
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1. Introduction
1.1 Background
There is now no other such thing as globalization, which would cause so much
controversy, such a wide resonance among representatives of politics, science and even religion
in various countries. In addition, it is quite natural. This proves that globalization involves such
acute issues of modernity as poverty and wealth, morality, morality, war and peace, national and
personal security, and ethnic conflicts. However, not all authors who are speaking now on the
problem of globalization have a clear idea about it, are aware of its true depth and breadth, and
are based on its scientific analysis (Iyal Smith, 2013) At the same time, widespread attention to
this problem is absolutely deserved. Many people intuitively feel that it is in this area that the key
to understanding and solving many of their vital problems lies. It should be noted that the
attitude of representatives of different regions of the world to globalization is very different.
Apparently, Western politicians and economists primarily seek to hide the true economic
interests of modern monopoly capital behind the scenery and advertising of globalization.
Supporters often present globalization as a universal means for all countries to achieve a
qualitatively new level of development, so they call on developing countries to actively engage
in this process, open their borders, reduce customs duties, etc. Thus, their supporters present the
desire of international monopolies for world domination without shame of conscience as a
certain benefit of globalization and civilization (Steger, 2017). This interpretation of
globalization is given in order for the underdeveloped countries to remove from the agenda
questions about countering the expansion of international monopolies. They insist on the opinion
that the globalization of the world economy is irreversible and inevitable, and therefore only
people who do not understand the objective laws of development can resist it as an integral
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feature of civilization. Under the massive pressure of propaganda about the allegedly positive
effects of globalization on the world economy, many scientists and ideologists for some reason
do not realize the inextricable link between globalization and the key interests of international
finance capital do not understand the threat of losing national sovereignty, further polarization of
wealth injustice, etc (Rodrik, 2011). However, the growth of poverty, poverty, hunger, crime,
regional conflicts is a direct consequence of the modern international expansion of world
financial capital
1.2 Thesis Statement
The supporters of globalization though emphasizes that globalization has an overall
beneficial effect on economic well-being; this is however is partially true. The proponents of
international integration ignore the grey side of the globalization. Globalization has an adverse
effect on political, economic and cultural environment across the world. The present paper aims
to represent grey side of the globalization that adversely affect income distribution, imperialism
and economic sovereignty. The negative side of globalization needs to be highlighted as it helps
to understand the actual picture of globalization.
2. Supportive argument to the thesis statement
2.1 Globalization and economic imperialism
The first point supporting the argument is that globalization is just a term used to denote
imperialism. To give a correct definition of the essence of globalization, it is necessary to trace
the history of the development of monopoly capital from the end of the 19th and throughout the
20th century. The fact is that the 20th century was a period of acute antagonism of opposing
social and economic systems, which ended with the formation of a unipolar world (Giddens,
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2018) Globalization as a phenomenon was directly connected with the processes of concentration
and centralization of capital and the formation of monopolies on this basis, is associated with the
entire history of the development of monopoly capitalism. However, the term “globalization”
itself was obviously introduced into science by apologists of the interests of transnational capital
with the political goal of replacing the term “imperialism” that had compromised itself in the
eyes of the world community (Hirst, Thompson & Bromley, 2015). Previously, in the scientific
literature, the national interests of individual countries, on the one hand, and the interests of
international monopolies, imperialism and international finance capital, on the other, were fairly
opposed. The term “globalization”, which allows, as we see, a variety of interpretations, was
introduced deliberately to obscure the problems of expansion and domination of monopolies
(Mewes & Mau, 2013) In other words, globalization is not some completely new phenomenon,
as some of its supporters want to present, but only a modern manifestation of trends that have
strong roots in the past period of monopoly development. Of course, the term itself is new, but
this cannot be said about the phenomenon of the economic division of the world by the
monopolies, which this term denotes.
In order to justify that globalization is a form of imperialism; we need to trace the origin
of globalization. To achieve this, it would be legitimate to ask the question: “Is globalization a
kind of one-time act or a fairly lengthy historical process?”. Various foreign authors put forward
different opinions on this subject. Some attribute the beginning of globalization even to the
period of Genghis Khan with his military campaigns with a view to conquering the world. Others
link the emergence of globalization with the industrial revolution in Europe
(Chandy & Seidel, 2016). Others link globalization with the emergence of large capitalist
companies. Some claim that the beginning of globalization coincides with the end of the Cold
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War and the destruction of the USSR. Ideally, the roots of globalization belong to the period of
the emergence and subsequent development of monopoly capital, so it, as a phenomenon (and
not as a term), is a definite and recent process. In addition, if this is a process, then it is necessary
to determine its terms and stages.
2.2 Globalization and economic sovereignty
The second argument is that globalization hinders sovereignty and independence of
individual developing nations. Globalization relies on giant TNCs and TNBs that are striving to
take the place of traditional states. It is the transnational economic factors that make up the ever
narrower circle of owners of the new globalized world (Ghemewat, 2012). They seek to finally
destroy all manifestations of state sovereignty, national independence and cultural identity that
interfere with their undivided world domination. Economic globalization is complemented by
informational globalization. Many authors, who are speaking now about the problem of
globalization, consider first its economic and political aspects, often underestimated the essence
globalization of information, which it would be fair to call information war. On the one hand, it
is necessary to note truly revolutionary changes in the field of informatics and communications,
which was the result of scientific and technological progress (Petras, 2016). However, on the
other hand, it is clear that economic globalization used the information revolution for its own
purposes and at the same time gave it a new impetus to development. NCs as an instrument of
globalization have become a means of widespread use and dissemination of scientific, technical
and informational innovations. TNCs control information flows and direct them into the channels
they need, clearing access to the resources they need in this way. Economic globalization needed
information globalization. As a result, a mutually beneficial symbiosis has formed between them,
which is increasingly strengthening economic globalization with the help of new information
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technologies. In addition, in order to penetrate deeper into the economies of various countries
and turn them into their appendages, TNCs and international financial capital use the modern
range of information media (Internet, satellite TV, mobile phones, telexes, faxes, etc.) (Smith,
2016). The degree of merger economics and informational globalization has grown so much that
it allows us to assert already about the emergence of a new single organism, whose influence on
various aspects of life in different countries is truly enormous. This influence covers areas such
as market relations, the psychology of society, culture and art, even family life and the
upbringing of children (Caselli, 2012).
2.3 Globalization and economic inequality
One potential adverse effect of globalization is realized in terms of increasing economic
inequality. The integration between nations though increases average income globally but it has
also increase inequality in income distribution. The resulted increase in volume of trade of goods
and services lead to an increase in average income. There is also an associated increase income
inequality (Andree et al., 2014). The view that globalization increases income inequality now
exists in two varieties. The version of income inequality, which is less, worsen states that
inequality resulted as a byproduct of globalization tolerable. Globalization though increases
wage of specialized worker but the same does not happen for other segment of the labor force.
This led to an increase in income gap between the two-income groups. The worse version of
income inequality however points out that because of globalization wage of low skilled workers
slides down. This is due to a lower demand for low skilled workforce (Martell, 2016) On the
other hand, in order to produce specialized goods, demand for high skilled workers increases
which in turn raises wage of skilled workers.
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The worse version of income inequality is more worrying. With globalization production
of most goods and services have taken place on international platform. Resulted inequality from
globalization depends on matching of skills between different workers. Better is the match
between workers and the required skills lower is the inequality. The state of inequality is worse
in developing nations including in emerging economies like BRICS. 1 percent in the higher
income class in Brazil account 25 percent of national income (Milanovic, 2016). In Russia, share
of national income to the top 1 percent increased from 4 percent to 20 percent between 1980 and
2015.
3. Counter argument
3.1 Globalization and benefits to developing nations
Despite the above arguments against globalization, some authors may argue that
globalization has many positive effects. This is true especially if we consider how many
developing nations have benefited from technology and infrastructural transfer (Manyika, et al
2014). However, a close look shows that more benefits goes to developed nations. The practice
of the developed countries of Germany, the USA, Japan and many developing countries also
shows that they took positive points in planning and adapted it to their own conditions. In many
countries, both in-house planning and macroeconomic regulation of the economy are carried out
in practice. States in the context of globalization, for their preservation and survival, must
guarantee themselves reliable sources of their own financing and budget replenishment
(Jaumotte, Lall & Papageorgiou, 2013) The ego is achieved through state control over strategic
sectors and resources: oil, gas, coal, electricity, transport, wine monopoly, etc. State control is
needed not only to fill the budget, but in conditions. In the current globalization, which is not in
the interests of all, as some authors try to present, but only in the interests of a few industrially
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developed and selected countries of the world, many states must retain their ownership of
strategic industries and resources (such as oil, gas, coal, defense). industry, transport,
communications) for economic stability and replenishment of the state budget. Sustainable
economic development, as noted at the international conference in Rio de Janeiro (1992), is
impossible without adequate resource support for the economy. It should also be added that the
preservation of national sovereignty is impossible without the efforts of the role of the state in
the economy, including in the field of planning and macroeconomic regulation. The authors are
aware that attitudes towards government planning and regulation may be different and cause
different emotions (Kaplinsky, 2013). However, in the face of a challenge from the policy of
globalization, it is impossible to preserve its sovereignty without the regulatory and coordinating
role of the state.
3.2 Claim that globalization increases inequality is debatable
The influence of globalization on increasing income inequality among countries is
questionable. It is true that inequality increases in rich nations, but the same does not happen
everywhere (Fujita & Thisse, 2013) One such example is France that avoided growing trend of
income inequality started since 1980. Not only France, Belgium, Spain and Hungary also
experienced a decline in income inequality. There is even more heterogeneity among the
developing nations (Baylis, Smith & Owens, 2017) Inequality often found to be declining in
many developing nations. More specifically inequality declines in many nations with increases in
degree of openness.
4. Conclusion
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Globalization, although it began far from today, is generally a new, unexplored, most
complex and largely unpredictable process. Moreover, it often takes place in seemingly
contradictory forms and directions. We have seen, for example, that interstate integration is
combined with the collapse of some countries and the intensification of separatism in others; that
against the background of the growth of nationalism, there is a significant reduction in
sovereignty. The most important for a long period will remain the problem of collisions and
combining national and supranational, group and world interests. Only some kind of institutional
solution of this gigantic problem can establish a more or less stable new world order. Naturally,
this requires time, during which a profound revolution in the worldview of elites and peoples
should occur, as a result of which national problems will first be considered first through the
prism of the common, and then in the context of the common (regional and world). In the
meantime, the ideas of a new order in most nations are completely inadequate with recognition
of the need for a reasonable reduction of sovereignty, the search for the most effective, attractive
and successful forms of supranational organizations and the interaction of their members.
Therefore, it will be better if some processes stretch in time, if integration goes slower, but is
stronger and conflict-free. There is no special need to hurry (except for solving some, for
example environmental problems). If changes are inevitable, we need to understand what
changes are coming and how, and try to work out the rules of the game in the international arena,
as well as ways to control violations. Then there will be adequate ideological justifications for
globalization, without which the process always goes much harder.
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5. References
Andree, P., Ayres, J., Bosia, M., & Massicotte, M. J. (Eds.). (2014). Globalization and food
sovereignty: Global and local change in the new politics of food. University of Toronto
Press.
Baylis, J., Smith, S., & Owens, P. (Eds.). (2017). The globalization of world politics: an
introduction to international relations. Oxford University Press.
Caselli, M. (2012). Trying to measure globalization: Experiences, critical issues, and
perspectives. New York, NY: Springer Books.
Chandy, L., & Seidel, B. (2016). Is globalization's second wave about to break? The
Brookings Institution. Retrieved from https://www.brookings.edu/research/is-
globalizations-second-wave-about-to-break/
Fujita, M., & Thisse, J. F. (2013). Economics of agglomeration: cities, industrial location, and
globalization. Cambridge university press.
Ghemewat, P. (2012). Actually, the world isn't flat [Video]. TED Global 2012. Retrieved
from https://www.ted.com/talks/pankaj_ghemawat_actually_the_world_isn_t_flat
Giddens, A. (2018). Globalization. In Sociology of Globalization (pp. 19-26). Routledge.
Hirst, P., Thompson, G., & Bromley, S. (2015). Globalization in question. John Wiley & Sons.
Iyal Smith, K. E. (2013). Sociology of globalization: Cultures, economies, and politics. New
York, NY: Routledge
Jaumotte, F., Lall, S., & Papageorgiou, C. (2013). Rising income inequality: technology, or trade
and financial globalization?. IMF Economic Review, 61(2), 271-309.
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Kaplinsky, R. (2013). Globalization, poverty and inequality: Between a rock and a hard place.
John Wiley & Sons.
Manyika, J., Bughin, J., Lund, S., Nottebohm, O., Poulter, D., Jauch, S., & Ramaswamy, S.
(2014). Global flows in a digital age: How trade, finance, people, and data connect the
world economy. McKinsey Global Institute. Retrieved
from https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-
insights/global-flows-in-a-digital-age
Martell, L. (2016). The sociology of globalization. John Wiley & Sons.
Mewes, J., & Mau, S. (2013). Globalization, socio-economic status and welfare chauvinism:
European perspectives on attitudes toward the exclusion of immigrants. International
Journal of Comparative Sociology, 54(3), 228-245.
Milanovic, B. (2016). Global inequality: A new approach for the age of globalization. Harvard
University Press.
Petras, J. (2016). World development: globalization or imperialism?. In New Perspectives on
Globalization and Antiglobalization (pp. 47-60). Routledge.
Rodrik, D. (2011). The globalization paradox: Democracy and the future of the world economy.
New York, NY: W. W. Norton & Company.
Smith, J. (2016). Imperialism in the twenty-first century: Globalization, super-exploitation, and
capitalism’s final crisis. NYU Press.
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