The Pros And Cons of Globalization
Globalization is beneficial as well as devasting for the planet and people [Thesis Statement]. It has resulted in positive development in business and trade around the globe. It has brought down poverty and increased life expectancy. The transfer of information, technology and awareness is now cheaper and highly effective. However, it has also disastrous effects on the life of labour, workers, individuals and the environment. [Reverse Funnel]
Globalization has granted a tremendous amount of power and reach to a business. With modern technology, travel and shipping have become affordable and safer. It enabled corporations to move their workforce, inventory, asset and product effectively and effortlessly. As trade became essential for economic growth, the tariff and regulation on business and trading were either abolished or reduced significantly. These two factors allowed the companies to sell their product in a diverse and broad international market. With the saturation of the global market, the businesses shifted their production to countries with cheap labour. It allowed them to produce their product at less cost. As a result, the companies could increase their sell and remain afloat in the competitive world. After globalization, there was a sudden acceleration in the reach and power of businesses around the globe. [Support # 1]
Globalization has also improved the life expectancy of the people. It increased the opportunity and employment for manufacturing and production jobs, Which resulted in a shrinkage of extreme poverty. Extreme poverty is shrinking to 836 Million from 1.9 Billion [UN report 2015]. The escape from poverty allowed people to afford food and medicines, and it rescued them from an early death. The food quantity was also increasing because agriculture technology was constantly updating and spreading around the globe. The improvement in crop yield expanded the food supply. It also reduced the food price, which again contributed to lesser death caused by hunger. The medicines, cures and vaccines were also globally available and affordable. These three factors contributed to increasing life expectancy around the world. [Support # 2]
In the same fashion, the news, awareness and technology could effectively and rapidly travel from one edge of the world to another. The online journal on medical and other science fields made the technology accessible to all the masses. In the same way, news and awareness were spreading rapidly through the internet, mainly through social media. Globalization accelerated the spread of both awareness as well as technology.
[Support # 3]
On the national level, globalization was beneficial for Pakistan. Pakistan can export its products (including textile) to Europe, the United States and other developed countries. After 2021, the IT sector and freelancing are also being popular in Pakistan. Pakistan stands tall in the global competition for production, manufacturing and cost-effective products as well as services. Under favourable conditions, globalization can be a catalyst for the economy of Pakistan.
[Support # 4]
Although globalization is beneficial for business, trade and life expectancy, it has affected jobs and ecology. It has also exploited the working class and resulted in monopoly by giant corporations. In addition to that, child labour, forced labour, value-added taxes, economic cheating, counterfeiting and stealing technologies are a few of the horror of globalization [Bridge/connector].
Two of the main negative aspects of the globalization are displacement of jobs in developed countries and the exploitation of the working class in developing countries. Since the companies are looking for cheap labour, the manufacturing and production jobs are near extinction in developed countries. “China drained 3.2 Million jobs, including 2.4 Million manufacturing jobs. He [the author] pegs the net losses due to the US trade deficit with Japan ($ 78.3 Billion in 2013) at 896,000 jobs, as well as additional 682,900 jobs from Mexico-us a trade deficit run up from 1994 through 2010” [Robert Scott, Economic Policy Institute the US]. These companies and businesses started exploiting the labour class in developing countries by paying them far less than their needs and expenditures. In addition to that, These companies took no notice of devastating working conditions with no safety, forced labour and child labour. These factors directly hit the most vulnerable and lower class in the world. [Against #1]
For one thing, globalization is depriving the planet of resources, forests and wildlife. It is inducing pollution in the ground, water and air of earth. With the reduction in the cost of production and labour, businesses are rapidly draining the raw material, crude oil, gases, lumber and other essential materials from the ground and surface of the planet. The planet takes time to regenerate those resources. Continuous growth in such a manner will lead to disastrous effects on the earth and the atmosphere. It may mark an end to such resources. As a result of the rapid growth of business and population, commercial and residential structures are outspreading like wildfire. It is resulting in the reduction of forests, trees and wildlife. These industries are also dumbing the waste, harmful chemicals and pollution in the atmosphere, including air, water and ground. Finally, there is an indication that globalization might end the ecology and all forms of life on the planet in a century, if not a few decades. [Against #2]
Although globalization is relaxing the tariffs and regulations, it still contains many loopholes, disadvantages and barriers. For instance, “There is 21.6% VAT (Value Added Tax) in Europe” [Forbe, Mike Colline]. This tax violates the concept of free trade, and such violations are also visible in recent trade wars between the US and China. Similarly, the spread of technology has allowed countries like China to steal technology and sell counterfeit products. The manipulation of money is also a key cheating strategy in modern globalization, and it increases the export and reduces the import. Such violation to WTO (world trade organization) results in unfair advantage to one country over another. [Against # 3]
Multinational corporations are also involved in cheating in the system. They either create a monopoly, evade taxes or start to influence political decisions. The big giants like Facebook, Nestle and Amazon are already buying their competitors to create a Monopoly in their respective fields of business. Apart from this, many companies are also exploiting the tax haven to avoid paying taxes. Finally, they sponsor the election campaign of their favourite political candidate, and once victorious, he starts to work for the political interest of his sponsors. Since the presence of such big corporations accommodates the economy in the state, the companies also use it to avoid political will against them. This aspect of globalization shits the politics and economic powers from the hands of citizens to directors of the corporations, where they should never belong. [Against # 4]
With many benefits, there are also few devastating effects of globalization on Pakistan. The first visible effect is the exploitation of labour. Since Pakistan is among the top of such lower wagers countries, the workers earn far less than their needs and expenditures. Forced labour and child labour is also common here. Pakistan is also losing in this global competition due to load shedding. It results in higher prices and lower production. Without globalization, Pakistan might have survived it. But, in the post-globalization world, it will halt the economy of the country. [Against # 5]
Whenever a disease comes into existence or observation, the doctors, professionals and researchers try to find the cure. Similarly, the economic experts have come with few remedies that can reduce the dangerous effects of globalization, if not abolish them. [Connector/Bridge]
The first remedy explained in Forbe by Mike Collin is “to improve the leadership”. He argued that few countries cheat by manipulating the currency or violating the WTO (World Trade Organization) rules. Those countries must pay penalities or heavy taxes. In the case of Pakistan, the leadership must also be willing to provide necessities such as electricity to the businesses. [Remedy # 1]
The enforcement of local laws will also reduce some negative aspects of globalization. For example, there are laws regarding forced labour, child labour, safe working conditions and minimum wage in every country it includes Pakistan. The authorities only need to implement these laws. [Remedy # 2]
The awareness can stop companies from cheating or polluting the earth. As soon people know about such things, they start to participate in protests and boycotts. It eventually hurts the interest and image of these corporations. They tend to work more eco-friendly and safely to avoid it at all costs. In addition to that, Businesses might consider converting to renewable energy, which will reduce the cost, pollution and never-ending deprivation of earth resources. [Remedy # 3]
Globalization has equal advantages and disadvantages. Only by following the economist’s recommendations, one can make it more favourable. However, “ Globalization is icy water, and we have no option but to keep swimming in it, always expecting to stay afloat” [Ferbe Miek Collin].
[Conclusion]
