Today, humanity faces development and the rise of global awareness, made countries interdependent, in politics, economy and trade aspects. Besides those, the globalization is describe the way in which the world is developing a single economy and culture. This is as a result of improvements in technology and the influence of large multinational companies. Globalization is changing people’s experience of everyday life all over the world. So, confront the globalization, this essay will discuss about the negative and positive effects of globalization. Moreover, due to globalization is like a Double-edged sword and in order to make a wise decision. Is necessary to analysis the effects of globalization.
In order to achieve the aim of this essay, firstly discussion focus on the negatives and positives then will compare between negatives and positives; finally, draw and clear evaluation and conclusion stated.
It does will know that globalization is a trend and every country, rich and poor countries experience effects from the globalization. However the key is that in this background the rich countries become richer and the poor countries become poorer. Regarding those aspects, the gap of both countries is widening, there are issues of poverty in developing countries, the instability of world economy and damage of the local environment.
The problems of the gap in both countries and the issues of poverty in developing countries. First of all, as stated from the website http: from 2002, the revenue perspective, the wealth gap is very conspicuous. Over the past 30 years, the income gap of 20% of the world’s rich and poor people, from 30:1 to 61:1 and in 2002, global gross domestic product (GDP) reached 32.25248 trillion U.S. dollars, of which the population of low-income countries accounted for 40.6% of the world’s population, while GDP in these countries only accounted the 3.51% world’s GDP; On the contrary, the population of high-income countries accounted for only 14.9% of the world’s population, which CDP accounted for 80.59 % world’s GDP. This phenomenon shows that the international-government should increase the investment in poverty reduction projects and built an international fund to improve the life in poor countries. The implications of this suggestion are wide. On the one hand, Brazil is an example of the one country which has the biggest gap between rich and poor. According to Xia Shunzhong. (No. 9 2002) in North-South polarization and economic globalization Contributing Factors, in order to change this situation, since 2003, the Brazilian government need to focus on the project of investment in poverty reduction, and continue to increase inputs in the social project, the government took seven years to take 2000 million people out of absolute poverty, and 3,100 people entered the middle class, moreover the country ahead of schedule of the United Nations Millennium Development Goals. On the other hand, the international funds, such as international monetary fund (IMF). According to Dreher, A. (2003) in The Influence of Elections on IMF Programme Interruptions “the purpose of IMF is that through the expansion and balanced development of International trade, to promote and maintain employment, production and resource development, high level of real income in Member States, all of this as the primary objective of economic policy. Furthermore shorten the time for the international balance of payments and reduce the degree of imbalance in member’s states” In this financial crisis, the IMF on 17 Apr 2010, has been to provide a total of nearly 1.2 billion U.S. dollars loan assistance for Iceland. This loan will effectively alleviate the present economic crisis in Iceland, and to promote economic recovery in the second half of this year. The IMF will continue to support Iceland and help them to overcome crises. While with the global financial crisis spread to the poorest regions of the world, so many African countries now need financial assistance. IMF decided to raise additional funds from IMF member countries, besides this, IMF will improve the credit line for poor countries.
Globalization damages the local environment and to make instability of world economy. In those aspects, especially the global trade liberalization has accelerated the consumption of global resources and it direct threat to the Earth’s biological diversity system. Trade liberalization has brought many negative affects to the global environment: First, the global timber trade led to the original forests is being slashed, thus seriously damaged the system of biological diversity. Furthermore, more than half of the species on Earth hidden in the forest, with the forests are being slashed, the original plant communities of forest destruction and extinction of biological species. For example, Brazil is the best areas in the world to maintain tropical rain-forest ecosystem, unfortunately, this piece of precious rain-forests are becoming smaller and smaller due to human exploitation of the farming and business activities. According to Miao Zhen. (2004) in Globalization’s Influence on Environment, based on current business activities, scientists are expected that over the next 20 years, 40% of the Amazon rain-forest will be completely destroyed and 20% of the rainforest will be severely degraded. The second, the great temptation from the international market to promote the development of the global fishing industry, result the fisheries resources decline sharply. Today, 70% of the world’s major fish stocks face overfishing problems.
On the other hand, in the background of globalization, due to countries have a closely economic links, so if one country’s economic system had problems and it will be linked to other related countries, so the joint-relationship is inevitable. Such as the recent U.S. subprime mortgage crisis, it begins in the spring of 2006 and then in August 2007 hit the United States, the European Union and Japan, the world’s major financial markets. To avoid these issues, governments have taken active measures, such as national make law to protect forests such as forest protection laws, strengthening the economic transparency among countries and economic information sharing. Using those methods, it can be possible to maximum avoid the crisis of globalization.
From here show the disadvantages of the globalization from the negative side; however there are the effects of globalization. The following shows the positives of globalization.
Globalization for developing countries is an opportunity. For example China for example, 1970 years China was liberated, economically and culturally was undeveloped, in the context of globalization, China implemented a policy named “reform and opening up”, using this policy, China spent ten years, the gross national product emerged resulting people getting richer. Without this opportunity, China has also implemented a policy of seclusion, as the Qin Dynasty. In comparison to Qin Dynasty, China is still considered to be poor and under-developed.
Globalization improves the ability to control environmental. First, it promotes the various environmental groups to built, such as Greenpeace; Greenpeace has made contribution to the world’s environmental protection and some key ideas, for example: prohibited the export of toxic substances to developing countries; to stop commercial whaling; to development many United Nations convention for the world to provide a better environment for fisheries development; a ban whaling in the South Pacific area ; prohibits dumping of radioactive substances to ocean and stop using the large-scale tools to make fish. Second, with the promotion of globalization, the way of international environmental cooperation have get great development in the depth and range aspects, and formed a government, international organizations, non-governmental environmental organizations, and the establishment of a global summit, multilateral environmental negotiations, international conventions agreements, the Global Environment Facility, as the main content of the international environmental protection institutional system.
The positive and negative effects of globalization coexist. Completely denying the negatives of globalization would be ignoring the benefits of globalization, and to exaggerate the advantages of it, this action will ignore the negatives of globalization. In the current international environment and the impact of globalization, countries have been closely linked than before and the past frequent war is difficulty appearance in today. Today, with the full development of economic globalization, the world’s trade and economic relations will follow closer, and then the war will not break out easily. It can be expected that the globalization of economy, will penetrate into the political, military, diplomatic, environmental, culture and other areas, all of those will be developed rapidly and gradually moving toward globalization. More specific, under the guidance of globalization, political, military, diplomatic, environmental protection and other fields will be to one direction, and then the real world will become an accurate “global village”
Realistically communication, globalization has brought more positive changes to individual’s lives, even if it has many negatives, but in fact, people can not separable from globalization. All of the negative and positive effects of globalization can draw a conclusion that exclusion of globalization, this action has no meaning. The accurate approach is to dare to be concerned the fact and this is the preferred choice. After all, if a country has to avoid to attended globalization, it maybe appearance unexpected situation. So every country has better integration into the globalization in this international pattern.
1.Samuelson, M. (1979) Economics (Volume) Beijing: Commercial Press.
2.Dreher, A. (2003) The Influence of Elections on IMF Programme Interruptions New York: The Journal of Development Studies.
3.Xia Shunzhong. (No. 9 2002) North-South polarization and economic globalization Contributing Factors Shang Hai: Social Sciences.
4.Miao Zhen. (2004) Globalization’s Influence on Environment Tian jin: Ecological Economy.
5.Fast-track deportations from “world bank document
accessed on 23 July 2010.
6.Bari. (2001) Globalization and Global Issues Bucharest: Economica Publishing House.
7.Robert J, Shiller. (2008) The subprime solution United States of America: Princeton.edu.