What Do You Understand By The Term Globalization Analysis Essay Example

themselves significantly in transnational terms. Despite this, states are only partially influential compared to markets and individuals.'

Approximately one year after World War II ended, the United Kingdom and the United States convened in Bretton Woods, USA to establish a stable and appropriate institutional framework for globalization. This resulted in the creation of global financial institutions including the IMF, World Bank, and GATT. Over the course of 150 years, capital mobility has experienced significant development followed by intense decline - likened to an 'inward-outward breath'. Despite occasional interruptions, globalization has consistently grown since 1850, making it fittingly labeled as a phenomenon.

The world is going through a period of introspection, reminiscent of the early 20th century, as a result of the recent economic downturn. Globalization has had adverse effects on individuals, economies and nations alike. According to Kaplinsky (2005:24), global production and trade networks have contributed to an escalation in worldwide poverty and inequality. In South Africa, children are more likely to experience globalization's negative consequences rather than its benefits. While some countries lag behind in globalization, others suffer from poor governance which impedes their efforts towards greater global integration.

Waltz (2000: 48-50) argues that a state's success is contingent on having a strong government, and emphasizes the notion of 'get big or get out' to underscore the importance of rapid progress. McLuhan (1962), on the other hand, posits that electronic interdependence has transformed the world into a global village. This is evident in the swift growth of news agencies like Reuters (British), Havas (French), Wolff (German), and Associated Press (US). Additionally, Thussu (2006: 14) notes that during an early 20th century Berlin congress attended by representatives from

28 states, the International Radiotelegraph Union was established.

Globalization relies on modernization and unrestricted access to information through mass media, cyber space, and the press. Media giants like Twentieth Century Fox, Warner Bross, Walt Disney, and Cable News Network (CNN) are key players in the global scene. However, the concentration of global economic power in northern latitudes sustains self-interests of select individuals. This leaves most of Africa, Russia, the Middle East (excluding Israel), and substantial parts of Asia out of the process (Waltz 2000: 47). Despite the people's yearning for a world characterized by equality and freedom (Hardt and Negri 2005: xi), the realities of global terror, democratic meltdown, bureaucracies, smoke and mirrors paperwork persist. Alongside new definitions of global war with weapons of mass destruction continue to surface.

In their book, Hardt and Negri (2005: 231) reference Edward Rutledge (1776) who stated that pure democracy can be effective when patriotism is the ruling passion, but when the government is corrupt, it may be necessary to suppress some of the popular spirit. However, the G20 has other options. According to Elliot (2010), the ruling power habitually convene meetings and conferences, making deals behind closed doors and spending endless hours negotiating to avoid making any tangible change. During the G20 summit in London at the end of 2008, Gordon Brown proposed nothing different but a promotion of "free market globalization" (Hilary 2009).

A different strategy is required to address the global economic crisis, taking into account its underlying causes (Hilary 2009). While rejecting North Korea and Cuba's self-sufficient goals, it must also avoid Brown's unfettered market fundamentalism (Hilary 2009). One potential solution could be a new

era of worldwide democracy that would counteract financial deregulation, emphasizing ethical values for public benefit and ecological sustainability (Hilary 2009). Given past experiences with financial turmoil around the world, such as credit-default swaps and banks deemed "too big to fail", the current situation was not unforeseen (Zilber 2009).

Globalization may either persist as a global phenomenon for a significant duration or terminate worldwide. However, since the mid-1990s, there has been a transition from triumph to catastrophe, leading to apprehensions about de-globalization. According to Sirkin et al., globalization involves contending with individuals from different parts of the world for various resources.

In 2008, Huntington (2004: 13) pointed out that globalization has caused people to reconsider and redefine their identities in more intimate, communal terms. As the global course of nature changes, it has become essential to prioritize the moralization of worldwide connections, rather than solely focusing on the transnational liberalization and deregulation of existing markets (Hilary 2009). Countries had previously followed the Washington consensus, but were not warned about the dangers of greedily diving into the money flood and overvaluing their currencies, which led to the Mexico crisis of 1994 (Williamson 2002). Paulo Fernando Gomes further highlighted that 60% of Africans live below the poverty line, and long-term growth projections suggest inadequate outcomes (2004). Regrettably, in 2008, even the World Bank acknowledged that globalization and open markets had produced unsatisfactory results after three decades.

According to John Hilary (2009), around 4 billion people are predicted to live in poverty, and an additional 200 million are anticipated to face severe needs due to the current crisis, as stated by the International Labor Organization (ILO). Hilary (2009) also highlights that in

sub-Saharan Africa, 4 out of 5 workers remain entrenched in poverty. This could be attributed to low-income countries being trapped in dependency by the countries controlling global development, as noted by Kaplinsky (2005).

To establish a new method of global governance, it is crucial to prepare for crisis management since rational economics in an irrational world have become illogical. The Economist noted in 2009 that the use of the term 'globalization' had declined due to the recent economic recession. This analysis was based on articles published by the newspaper using this term, prompting questions about whether this downturn has positively impacted globalization.

Neri Zilber (2009) identifies positive factors that influence the current situation, but believes it would be worthwhile to explore a new ideology to replace the current one. Due to recession, private enterprises have been compelled to sell to profitable multinational corporations in order to avoid bankruptcy. International banks are considered a key contributor to the crisis.

The competition for loan-giving has led to a global breakdown where banks are providing more loans than they have the capacity to accommodate. These loans are being offered to individuals without known or predicted income. In recent times, the United Kingdom has experienced multiple crises. Jaguar Land Rover and Honda, the car manufacturing companies, have laid off employees and adopted a short-time working model due to over 30% decline in sales (Wood 2010). Credit-default swaps have forced the sale of MG Rover to Nanjing Automobile (BBC News Business). Furthermore, Kraft acquired the Cadbury Bourneville chocolate factory at a reduced price because of a 16% drop in value of the pound against the dollar in the past two years, and a

2% drop against the euro (Dyson 2010).

British Airways has encountered significant challenges, such as staff reductions and customer losses to competitors like EasyJet and Ryan Air. In 2009, General Motors was acquired by a consortium of transit agencies and became part of National Car Lines. The crisis has led to de-globalization, negatively impacting multinational businesses. Although banks may have gone bankrupt at an international level, national governments have taken them over.

The Royal Bank of Scotland and Lloyds Banking Group have been nationalized, both internationally recognized banks. However, Lehman Brothers, Merrill Lynch, and Bear Stearns no longer exist (Wood 2010). Importation and state preference in economies are a shift away from globalization rather than a complete withdrawal from the international economy (Bello 2002:113).

To summarize, I understand 'globalization' as an extensive belief system that has resulted in noteworthy achievements on a worldwide level. However, it has also led to a decline in individual well-being and ethical standards. Its progress is inevitable and permanent, but there have been fluctuations in its advancement. The current economic crisis has stimulated talks about the growing trend towards de-globalization.

Despite the worldwide crisis, major nations are opting to maintain the existing plan and address de-globalization by restoring it as a profitable ideology. Nevertheless, this approach has resulted in depression, poverty, and inequality and has not been effective. As such, it is imperative for G20 leaders to devise a new strategy that tackles these problems and establishes measures for managing widespread de-globalization.