- Mains – GS 3 (Governance and International Relations)
Context: Worries about the inadequacies of global governance and weakening multilateralism have heightened in recent years.
About Globalization and De-globalization:
- Globalization is the word that describes the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
- On the other hand, De-globalization is a movement towards a less connected world, characterized by powerful nation states, local solutions, and border controls rather than global institutions, treaties, and free movement.
The Benefits of Globalization:
- It fostered as well a rapid global industrial development that allowed the rapid development of many of the technologies and commodities, we have available nowadays.
- The multiplication of economic and financial exchanges has been followed by an increase in human exchanges such as migration, expatriation or traveling. These human exchanges have contributed to the development of cultural exchanges.
The Negative Effects of Globalization:
- Apart from all the benefits globalization has had on allowing cultural exchanges, it also homogenized the world’s cultures.
- That is why specific cultural characteristics from some countries are disappearing.
- The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently.
- In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization.
- Many critics have also pointed out that globalization has negative effects on the environment.
- Thus, the massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution.
Reasons for rising tendency towards de-globalisation by some countries:
- Rise of Asia: Developing nations like India, China and Japan have grown rapidly over the last few decades.
- The economic power has been shifting from the West to these Asian Nations.
- Thus, developed nations have started turning inward in order to put a check on the rise of other powers.
- Protectionism: Although western nations have benefitted immensely from globalization by expanding the reach of their economy and by the acquisition of talented individuals, public support towards it has been waning fast. Developed nations think they have more to lose than to gain.
- Security concerns: One of perceived consequences of globalization is rising security concerns.
- Increased exchange and mutual trade between nations have made it increasingly tough to maintain global security.
- Refugee crisis: Another factor that plays a role in support of de-globalization is the refugee The constant unrest in western Asian nations has caused a severe refugee crisis.
Impact of de-globalisation on India:
- De-globalization will lead to reduction in the rate of economic growth of India.
- It will lead to protectionism with reduced cooperation among countries that will hurt Indian trade and exports.
- It may lead to increased import costs due to lesser choice and options and manufacturers and producers would have to pay more for equipment, commodities, and intermediate products from foreign markets.
- It will lead to decrease in standards of living, as it will affect exports and economic growth affecting welfare of poor and their standard of lives.
- It will lead to rise in conflicts economically and politically.
- It would affect polity leading to instability in political framework of nations due to rise in prices and cost of living may lead to civil Uprisings.
Impact on technology:
- These tendencies limit technological advancement of the world as whole and of developing countries in particular.
- Limited knowledge-sharing, lack of flow of technology to developing countries limit advancement in science.
Impact on Environmental conversation:
- Due to non-cooperation among nations, it will affect environment conservation efforts in India.
- It will reduce required funding and would jeopardize efforts to conserve environment and tackle environment change.
Impact on women employment:
- De-globalization would affect women empowerment efforts as it will impact women movements across the globe. Lack of coordination will reduce opportunities for women across the world.
Impact on security:
- Due to lack of coordination among various nations, security around the world along with India would affect.
- It will not only increase economic risks, but would provide an opportunity for terrorists to carry out violence due to lack of coordination among various law enforcement agencies.
When governments pursue more inclusive economic, social, and environmental agendas, they provide a further benefit to the world economy. Well-governed economies where prosperity is widely shared are more likely to welcome expanded international trade, investment and immigration.
As economics teaches, the home economy reaps the bulk of the benefits from openness to the world economy, provided the benefits are distributed equitably. When countries help themselves, they help the global economy.