Introduction
Globalization itself is not a new phenomenon: as Martin et al. point out, it has been an evolving character of the world’s economy for quite a few centuries now (3). Martin et al. opine that the Age of Exploration that commenced in the 16th century was what triggered the globalization process. Since the 1970s, globalization has been taking new forms: markets, networks, production systems have been extending and growing more interdependent (Martin et al. 3). According to Stanford, the factors that have been fueling globalization are advancements in communication and transportation technology as well as unilateral opening and free trade agreements (298). At the same time, the process is far from linear: as per the understanding of Martin et al., globalization is rather a complex “admixture” of multiple interrelated trends and phenomena, be they economic, political, social, or cultural (4). This essay explains why, among other effects, globalization causes turbulence and disruption.
Globalization as the Cause of Turbulence and Disruption
Globalization is not just happening: according to Martin et al., it is widely and zealously promoted by influential financial institutions such as the World Bank and International Monetary Fund (4). It is understandable: globalization offered and continues to offer promising perspectives, some of which proved to be true, though not without a few caveats. Martin et al. explain that the liberalization of the world economy did help many countries improve the traditional economic metrics such as GDP. However, economic growth does not always mean actual development.
Arguably, so far, the beneficiaries of globalization have been wealthy and resourceful. The lower social classes were often left at the wayside in this power dynamic. On top of that, Martin et al. speak about spatial inequalities: some regions, countries, and cities are located in such a way that they can take advantage of communication and transportation (5). Others, on the other hand, are stranded on the periphery and cannot set the rules of the game themselves.
The liberalization of global trade is another phenomenon whose effects are ambiguous. Martin et al. argue that world trade has been growing increasingly imbalanced (7). For instance, between the 1970s and 2000s, China has shown the largest surges in GDP while the United States has become the world’s largest deficit nation (7). These events are not independent of each other: their effects interlock and set a scene for a financial crisis.
Lastly, globalization and the digital transformation of the world go hand in hand. Zuboff describes the phenomenon of so-called surveillance capitalism. She explains that when corporations grow and obtain more resources to advance themselves technologically, they might as well embark on social engineering. Shaw opines that by collecting user data, big tech companies can create advertisements in a way that drives people to make choices favorable for the said companies (382). Braun takes the argument even further, saying that user tracking violates privacy and incentivizes disinformation. Arguably, it is the globalization of the economy that gives multinational corporations too much power and leverage to monitor and even alter human behavior.
Conclusion
Globalization is one of the defining trends of the modern era. It is not a new development, but what makes its status different today is how fast the processes are unraveling. Globalization has raised many people’s hopes high by offering the prospects of a liberalized economy and fair trade. In reality, these changes proved to have side effects. Economic growth turned out to be not exactly associated with equality, and free trade led to significant imbalances. Lastly, globalization compromised people’s freedom of choice and action as it allowed multinational enterprises to impact human behavior using technologies.
Works Cited
Martin, Ron, et al. “Globalization at a Critical Conjuncture?” Cambridge Journal of Regions, Economy and Society, vol. 11, 2018, pp. 3–16.
Sandel, Michael B. Justice: What’s the Right Thing to Do? Farrar, Straus and Giroux, 2008.
Shaw, William H. Business Ethics: A Textbook with Cases. Nelson Education, 2016.
Srnicek, Nick. “The only way to rein in big tech is to treat them as a public service”. The Guardian, 2019. Web.