GLOBALISATION INFLUENCE IN CRISIS CONDITIONS - Мои статьи - Каталог статей

GLOBALISATION INFLUENCE IN CRISIS CONDITIONS Ann Schlosser Associate Professor of Marketing Foster School of Business, University of Washington, USA Dr. Batchenko L.V. Donetsk State University of Management, Donetsk, Ukraine The global economy as a worldwide economic system began ca. 1500 with the rise and spread of commercialism and has evolved into an expanding system of industrial capitalism. The primary driver of globalization is rapid technological change in core countries and their ability to dominate production of consumer goods to the rest of the world. It involves the increasing interdependence of national economies, financial markets, trade, corporations, production, distribution, and consumer marketing. Naturally, globalization pays attention to the economic and technological life aspects, and changes of culture or identity levels. However, globalization is deeply controversial. Proponents in the sphere of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of this process claim that the creation of an unfettered international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people. Resistance to globalization has therefore taken shape both at a popular and at a governmental level as people and governments try to manage the flow of capital, labor, goods, and ideas that constitute the current wave of globalization. Thanks to globalization, our world has become smaller and smaller. Feats of technological genius now allow corporations to conduct their business around the world with rapid speed and relative ease. Certainly, globalization brings prosperity and higher standards of living. One study shows that open-trade economies enjoy a 4,5 % growth rate, while their closed-trade counterparts experience a measly 0,7 % growth rate. Arguments for globalization include the following: it is reducing poverty worldwide; it is allowing access to technology in developing countries; it promotes world peace; it raises life expectancy. Also globalization has several advantages on the economic, cultural, technological, social and some other fronts. Goods and people are transported with more easiness and speed, the possibility of war between the developed countries decreases, free trade between countries increases and global mass media connects all the people in the world. The past decade-and-a-half has witnessed a level of global integration unseen since before World War I (and arguably in history). Between the early 1990s and the current downturn, global GDP grew at robust rate--roughly 5% nominal GDP growth per year. Yet, trade flows grew nearly one-and-a-half times faster, while capital flows grew at twice the rate. The advent of viable undersea fiber networks in the late 1990s created the first real-time global data networks ever, unleashing a torrent of global information flows. In the last 2 decades, more than 200 free-trade treaties were signed, tariffs fell to unprecedented lows, and countries like China and India, after years of relative isolationism, engaged much more vigorously in the global economy. As result, the world economy became fundamentally more interconnected and interdependent. Globalization draws attention to the role of transnational corporations in creating a global market and system of production; to capital markets in creating an integrated financial system; and to bodies such as the International Monetary Fund (IMF) in disseminating a particular view of the state's role within the international economy. But the idea of globalization is the object of controversy. Unfortunately, globalization also has negative repercussions, which amplify due to world crisis. The world economy has just been through a severe recession marked by financial turmoil, large-scale destruction of wealth, and declines in industrial production and global trade. According to the International Labor Organization, continued labor-market deterioration in 2009 may lead to an estimated increase in global unemployment of 39-61 million workers relative to 2007. By the end of this year, the worldwide ranks of the unemployed may range from 219-241 million - the highest number on record. In the current downturn, at least certain aspects of globalization have stalled. Trade flows, for example, are expected to fall at roughly four times the rate of global GDP in 2009; tariffs are rising; and immigration restrictions in certain countries are increasing. The crisis, which hit the US hard in the fall and in January, is having significant knock-on effects across the world--particularly in key sectors, such as manufacturing and mining. This crisis raises fundamental questions about globalization, which was supposed to help diffuse risk. Instead, it has enabled America's failures to spread around the world, like a contagious disease. Therefore, it is possible to draw a conclusion that financial globalization is more vulnerable. Also, globalization has weakened the ability of nation states to regulate economic activity and govern transnational corporations. To achieve this they have moved production facilities to where costs are lowest and they adjust revenues in different countries in order to pay less tax and receive more subsidies. Research of questions of globalization allows to focus on such disadvantages of this phenomenon: growth in chances of monetary commotions in one country affecting all other countries; there are many situations of multinational corporations bullying small farmers into unfair trade agreements or forcing competitors out of business; one of the trends of globalization is depoliticization of public, the decline of the nation-state, and end of traditional politics (what is happening is that changes in technology and work relationships are moving too quickly for cultures to respond); programs of the International Monetary Fund often forces states to spend changes their political and economic system that to receive financial aid in a crisis situation; international bodies like the World Trade Organization infringe on national and individual sovereignty; spread of a materialistic lifestyle and attitude that sees consumption as the path to prosperity; decreases in environmental integrity as polluting corporations take advantage of weak regulatory rules in developing countries. Globalization is a complex interconnection between capitalism and democracy, which involves positive and negative features. But globalization often risks destroying these carefully built up structures by exacting the adoption of new styles of working, living and organizing communities. Changes in the economy, politics, and social life demand a constant rethinking of politics and social change in the light of globalization and the technological revolution, requiring new thinking as a response to ever-changing historical conditions. We must internalize lessons from the past and focus on establishing well-functioning markets that enable developing countries fully to tap their economies' comparative advantage. As part of this process, a facilitating role for the state is desirable in developing and developed economies alike, although the appropriate role may be different depending on a country's stage of development. Ultimately, in today's complex and interlinked world, even the most competitive economies need a helping hand as they climb the global ladder.
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