Globalisation: Challenges & Response

What is Globalisation?

Despite its being a universal and historical phenomenon, it is easy to understand but difficult to define Globalization as there is no consensus regarding its precise definition. For this essay, I would quote the following definition given by Manfred Steger

Historical Background of Globalisation

Much talked about, globalization is a gradual process with deep historical roots and can be traced to the length of your imagination. The far is the better! You may declare the first African who came out of Africa as the pioneer of globalisation. Or, you may credit Greeks or Iranians or Alexander, the Macedonian for initiating this process.

  1. Pre-Historic Phase: 10,000 to 3500 BCE/ Age of Fire

Impact of Globalization

Globalisation has a deep and wide impact on every sector of the economy and section of society in almost every country. Some of the ways it has impacted them are as follows

  1. Penetration of Global/Outreach of Local Entities

Is Globalisation Beneficial?

Most of the debate on globalisation is on this issue. Some proponents put forward the following positive points of globalisation to prove their point that globalisation is beneficial for the humanity

  1. Production/Productivity Gains
  1. De-industrialisation

Is Globalisation reversible? Can it be Rolled Back?

This issue has taken a lot of attention after Brexit, the rise of the far-right in Europe, and the triumph of Trump in the USA. To many people, these are the are indications of de-globalisation.

Challenges of Globalisation

There is no denying the fact that globalisation poses a lot of challenges and as well offers countless opportunities. It is the leadership test of the ruling elite of a country how they respond to these challenges and gain maximum benefits from the opportunities by exploiting their strengths and creating new avenues to harness the energies unleashed by the globalisation process. Some of the challenges these will encounter are

How to Respond to Challenges

The ruling elite in consultation with all stakeholders should formulate a vision for the country where it would be in a short to a long period in the rapidly globalising world. Thus, it could be an active partner, without it, the country could be a silent spectator or at worst a passive recipient. However, articulating a vision without formulating following attendant policies & strategies to achieve it is an exercise in futility

  1. Policy Framework Needed
  1. Increase productivity by increasing efficiency in all processes and operations
  2. Increase profitability of all stakeholders by providing them appropriate incentives and rewards
  3. Making exports competitive in the rapidly globalizing world
  4. Ensuring sustainability by promoting environment-friendly good manufacturing practices
  1. investment in physical capital and promoting innovation
  2. skills formation by increasing labour productivity through education, on the job training, skill up-gradation, and dissemination of new knowledge and techniques and
  3. competition ensures that resources are allocated to the most efficient firms and forces existing firms to organize work efficiently

Conclusion

Globalization is a multifaceted phenomenon that represents the increasing integration of economics, communications, and culture across national boundaries. It’s affecting, directly as well as indirectly, governance structures, processes, and culture in every country. All these developments need careful assessment and action to keep us relevant in the comity of nations and should not be considered an outcast because of a lack of proper and timely response to these developments.

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