Globalization: Prospects and Problems

Introduction: Globalization is currently a fashionable topicsome laud it, claiming that it is the path to peace, prosperity and progress. Others abhor it, attributing to it many evils in world affairs including polarization, environmental destruction, cultural degradation, and so forth. In fact, globalization can be described as a fast moving train that waits for nobody. Intended passengers either jump onto it or risk of being left behind. What is Globalization? Globalization is the process of integrating nations and peoplespolitically, economically, and culturallyinto a larger community. It basically refers to a process that enables people, goods, information, norms, practices and institutions to transcend national jurisdictions through markets, technologies, interests and information flows. It is gradually turning the world into a single and integrated entity with borders. Three main dimensions of globalization areEconomic Dimensions: Economic globalization is a process by which the economies of the world become increasingly integrated, leading to global economy and, increasingly, global economic policymaking. Socio-cultural Dimensions: Social globalization means processes whereby many social relations become relatively delinked from territorial geography, so that human lives are increasingly played out in the world as a single place. Cultural globalization refers to an emerging global culture, in which people more often consume similar goods and services, share and adopt several cultures of other nations being interconnected by means of TV, business, tourism and presence of the internet. Political Dimensions: Political globalization refers to an increasing trend toward multilateralism, toward an emerging transnational state apparatus, and toward the emergence of national and international nongovernmental organizations that act as watchdogs over governments and have increased their activities and influence. Historical Development: Globalization has been a historical process with ebbs and flows. During the Pre-World War I period of 1870 to 1914, there was rapid integration of the economies in terms of trade flows, movement of capital and migration of people. There were fewer barriers to flow of trade and people across the geographical boundaries. Indeed there were no passports and visa requirements and very few non-tariff barriers and restrictions on fund flows. The pace of globalization, however, decelerated between the First and the Second World War. The interwar period witnessed the erection of various barriers to restrict free movement of goods and services. Most economies thought that they could thrive better under high protective walls. After World War II, all the leading countries resolved not to repeat the mistakes they had committed previously by opting for isolation. In the last two decades, the process of globalization has proceeded with greater vigor. More and more developing countries are turning towards outward oriented policy of growth.

The positive impact of globalization: Globalization has many positive, innovative and dynamic aspects, all related to the increased market access, increased access to capital, and increased access to technology and information which have led to greater income and employment opportunities. This process integrates people, businesses, nongovernmental organizations, and nations into larger networks. Globalization promotes convergence, harmonization, efficiency, growth, democratization and homogenization. There is no dearth of examples: The world as a whole is definitely more prosperous and more healthy, with average per capita incomes tripling in the last fifty years, child mortality rates halving and life expectancy increasing by ten years since 1965.Trade flows also increased 12-fold in the past fifty years as a result of the removal of natural and artificial barriers. As national economies become more homogeneous and more integrated with the outside world, people are moving across national boundaries in unprecedented numbers and frequency. A rising population in less-developed areas frequently has triggered emigration to areas of economic opportunity, and this in turn has frequently produced a stream of remittances to family members who remained behind. Tourists, business people, artists, researchers, educators, students, and even bureaucrats are increasingly seeking opportunities outside their home countries; as a result, people from different countries are getting to know each other and exchange views and ideas, often becoming friends and collaborators. The human network is broadening and deepening with the passage of time. Enhanced by international media, people across national boundaries have begun to share similar views, aspirations, and even similar heroes and idols. People are talking about similar topics, dressing according to similar codes, eating similar foods, sharing similar dreams, and protesting against similar evils, as if the world were a single community. The negative impact of globalization: While the world as a whole has benefited from globalization, there are some negative and marginalizing aspects of globalization1. Unbalanced Distribution of Benefits: The first negative aspect of globalization is that its gains are not equally distributed, both between and within countries. Indeed, many of the gains have been going to the rich nations or individuals, creating greater inequalities and leading to potential conflicts nationally and internationally. While the world has shrunk into a global village, the gap between the rich and the poor in that village is widening. While billionaires grow in number, millions of people find themselves out of jobs and many without food, shelter or medical care. The information and communication technology revolution, which is regarded as the newest sinew of globalization, has created a gap of its own the so-called digital divide. 2. Financial Volatility: Globally integrated markets have financial volatility as a permanent feature, the frequency of financial crisis increasing with the growth in international capital flows. The human costs of such financial volatility can be very high, as shown by the effects of the Asian crisis bankruptcies, poverty increase, rising unemployment, reduced schooling, reduced public services, and increased social stress and fragmentation in short, a reversal in human development.

3. Contagion: The closer linkages that characterize globalization also allow for contagion and worldwide recession, or at least slowdown. The Asian crisis and the recent global recession had repercussions everywhere in South America, Russia, Africa, the Middle East which were affected either directly or indirectly. 4. More human insecurity: Unfortunately, the many opportunities opened up by the widening and deepening of information flows and contacts among the worlds people also include increasing opportunities for crime (trafficking in drugs, weapons, women, international syndicates), for the spread of HIV/AIDS as well as ideas, and for the flow of culture and cultural products which may lead to cultural homogenization, which, while considered enriching by some, is considered as a loss of cultural identity by others. 5. Impacts on political developments: The development of globalization has wide-ranging impacts on political developments, which particularly go along with the decrease of the importance of the state. Through the creation of sub-state and supra-state institutions such as the EU, the WTO, the G8 or the International Criminal Court, the state loses power of policy making and thus sovereignty. Many also worry about a growing concentration of economic power; harm to the environment; danger to public health and safety; and the loss of accountability, and transparency in government. 6. Ecological Destruction: Globalization has also done nothing to relieve the hazards of ecological destruction. As developed countries strengthen environmental regulations, multinational corporations move their polluting factories to developing countries. Meanwhile, third world countries struggling for development are more and more accommodating to the demands of the multinational corporations in order to attract and keep their investments. Consequently, ecological destruction continues and intensifies, only in a different locale. Globalization and Bangladesh: Globalization has many meanings depending on the contexts. In context to Bangladesh it implies opening up the economy to foreign direct investment by providing facilities to foreign companies to invest in different fields of economic activity in Bangladesh, removing constraints and obstacles to the entry of Multinational Corporations (MNCs) in Bangladesh, allowing Bangladeshi companies to enter into foreign collaborations and also encouraging them to set up joint ventures abroad, carrying out massive import liberalization programs by switching over from quantitative restrictions to tariffs and import duties. After a hesitant start in the mid-1980s, Bangladesh moved decisively to embrace the wave of globalization in the 1990s. Prospects of globalization: Globalization merely provides opportunities to flourish. Therefore developing countries require focusing on economic restructuring and developing market-supporting institutions. To get a share of global capital, technology and output, developing countries had to upgrade their social and economic institutions through administrative, legislative and legal reforms. Under the phenomenal growth of information technology which has shrunk space and time and reduced the cost of moving information, goods and capital across the globe, the globalization has brought unprecedented opportunities for human development for all, in developing as

well as developed countries. Our government should pay immediate attention to ensure rapid development in education, health, water and sanitation, labor and employment. A strong foundation of human development of all people is essential for the social, political and economic development of the country. The government should take immediate steps to increase agricultural production and create additional employment opportunities in the rural parts, to reduce the growing inequality between urban and rural areas and to decentralize powers and resources for implementing all works for rural development. It should be remembered that without a sustainable and productive growth of the agricultural sector, the other types of development in any sphere will be unstable and illusory. Conclusion: Globalization has appeared as an inescapable reality. It is not a tool to produce equality of outcome but it produces equality of opportunity for those with right mindset. Globalization should not be accused for loosing share of the low income countries. These countries suffered from internal problems like rapid rise in population, infrastructures bottlenecks, weak financial markets and so on. Globalization just requires vigilance and the rule of law. As more money is poured into developing countries there is a greater chance for the people in those countries to economically succeed and increase their standard of living.