Comparative Politics: Impact of Globalization and Neo-liberalism

This essay delves into the concepts of globalization and neo-liberalism, examining their historical context, evolution, and impact on international trade and various nations. It begins by tracing the origins of globalization back to the 1800s, highlighting the role of communication advancements in its development. The essay then defines neo-liberalism and its relationship with globalization, emphasizing how both have influenced international business environments. It discusses the varying effects of these processes on different countries and companies, attributing the outcomes to factors such as globalization paths, timing, leadership, and governmental policies. The essay concludes by underscoring the dynamic nature and significance of globalization and neo-liberalism in contemporary international business and politics, acknowledging their potential benefits and risks.

Running head: COMPARATIVE POLITICS
Comparative Politics
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1COMPARATIVE POLITICS
“No generation has had the opportunity, as we now have, to build a global economy that
leaves no-one behind. It is a wonderful opportunity, but also a profound responsibility.”
The above quoted lines of the former United States of America President Bill Clinton
clearly indicates the importance of the concept of globalization in the present day and also
gives an idea of the profound responsibilities which entail with it. It is to be noted that since
the introduction of the concept of globalization the environment of the international business
has changed drastically and there are many countries which have actually gained significantly
by the process of globalization1. The concept of neo-liberalism along with the concept of
globalization was primarily responsible for revolutionizing the international trade2. Therefore,
it would not be too far-fetched to say that both these factors worked in tedium and are related
to each other. It is to be noted that both the concepts have been utilized by the various nations
of the world to increase the amount of trade as well as commerce conducted by them.
However, it is seen that the concepts of globalization and neo-liberalism have proved to be
beneficial for some countries however it had adverse effects for others. This essay intends to
shed light on the processes of globalization and neo-liberalism and analyze the way they have
impacted the various nations of the world.
It is to be noted that the term globalization was coined in the 1970s3. However, the
use of the concept has been in practice ever since the 1800s with the introduction of the
telegraph posts as well as the steam boats4. Therefore, it can be said that the basic factor
which lead to the rise of the concept of globalization was the improvement of the various
forms of communication systems5. It is to be noted that communication is one of the basic
1 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
2 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
3 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
4 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
5 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).

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requirements for the effective conduct of the various forms of trade. Therefore, it can be said
that the introduction of the telegraph posts and the various stream boats gave the much
needed impetus to the trade system which it needed. It is significant to note that the origin of
the concept is one of debate for many scholars as well as researchers. There are many people
who believe the concept of globalization to be a latest innovation however there are others
who consider that the concept of globalization is an ancient and related to the ancient times
when the different civilizations of the world used to trade with the civilizations in their close
proximity6. Then there are others who consider that the concept of globalization came into
existence during the “European Age of Discovery and voyages to the New World”7.
However, it is interesting to note that in the year 2000 the “International Monetary Fund
(IMF)” gave four basic precepts of the concept of globalization which can be summarized as
“trade and transactions, capital and investment movements, migration and movement of
people, and the dissemination of knowledge”8. The concept of globalization is subdivided
into three segments- cultural, political and economic9. It is to be noted that in the recent times
the concept has undergone much transformation. Therefore, in the opinion of Thomas
Larsson articulated in the book “The Race to the Top: The Real Story of Globalization”, “is
the process of world shrinkage, of distances getting shorter, things moving closer. It pertains
to the increasing ease with which somebody on one side of the world can interact, to mutual
benefit, with somebody on the other side of the world. However, scholars like Paul James are
of the opinion that “Globalization is the extension of social relations across world-space,
defining that world-space in terms of the historically variable ways that it has been practiced
and socially understood through changing world-time”.
6 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
7 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
8 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
9 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).

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The concept of neo-liberalism, on the other hand, refers mainly to the “20th-century
resurgence of 19th-century ideas associated with laissez-faire economic liberalism”10. These
ideas can include “economic liberalization policies” like free trade, deregulation, austerity,
privatization and others11. This process can also relate to the reduction in the amount of
governmental spending in order to promote the trade of the various private organizations.
Therefore, it would not be too far-fetched to say that “these market-based ideas and the
policies they inspired constitute a paradigm shift away from the post-war Keynesian
consensus which lasted from 1945 to 1980”12. It is to be noted that the term neo-liberalism
has been used by the scholars since the traditional times however the concept gained
prominence back in the 1960s and 1970s with the rise of the concept of globalization13.
However, it is to be noted that many scholars consider that the concept of neo-liberalism was
developed in the 1930s with the view to solve the impasse which develop due to the
conflicting philosophies which resulted out of the “classical liberalism and socialist
planning”14. It is to be noted that the major drive for this particular process arose out of the
need to avoid the mistakes as well as the factor which lead to the economic failures in the
earlier part of the 1930s. Therefore, the two processes are often considered to go hand in hand
and are very essential for the effective conduct of international trade as well as commerce.
It is to be noted that the various countries of the world have followed the path of
globalization as well as neo-liberalism for the purpose of increasing the amount of trade and
commerce conducted by their national and private business organizations15. It is to be noted
that globalization became especially important and significant in the wake of the industrial
10 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
11 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
12 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
13 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
14 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
15 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).

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revolution when countries like England and the United States of America started producing
surplus amount of products16. However, it is interesting to note that the processes of
globalization and neo-liberalism have gone remarkably well for some countries like the
United States of America, England and others17. On the other hand, there are many countries
like Kenya, Nigeria and others which have not been able to perform much better even after
taking the help of the processes of globalization and neo-liberalism18. It is to be noted that in
terms of private business organizations the process of globalization has really gone well for
companies for Apple Inc., Microsoft and others. On the other hand, the process has not gone
too well for companies like Disney Land and others. This particular result can be a reflection
of various factors like the kind of globalization path followed by the nation, the timing of the
process, the leadership factor, the various governmental policies and others19. It is to be noted
that these factors need to be considered by any nation or company or business organization
before embarking on the path of globalization and thus they go a long way in determining the
amount of success achieved during the process.
Therefore, from the above discussion it becomes clear that the concepts of
globalization as well as neo-liberalism are very important ones when the international
business environment is taken into consideration. It is to be noted that both of these are very
ancient concepts and have been utilized by the various generations in their own ways as per
the needs and the requirements of their own time. Thus the concepts of globalization as well
as neo-liberalism are considered to be very dynamic ones. It is often seen that the various
countries as well as nations often take the path of globalization to improve the prospects of
16 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
17 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
18 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).
19 O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).

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their business. However, it is often seen that at times the process backfires and therefore the
companies or the nations had to take the burden of the loss.

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References
O'Neil, Patrick H., and Ron Rogowski. "Essential readings in comparative politics." (2010).