Globalization: North-South Political, Social and Economic Relationship - Coursework Example

Name Tutor Title: North-South Political, Social and Economic Relationship Institution Date Introduction The globalization concept is dominant affair across the world. This is one concept that is widely used while addressing issues of political, economical and social on a world platform. It remains evident that we can never separate political affairs, economic and even the social factor in our society. Politics serves as the controlling force in any state economy and the social relations. As for the north and south, the three components have a close interconnection bond. As argued by Smith (2011), the North- South relation is highly associated with increased interactions and a borderless planet linked by advanced technology and information sharing. However, there is more to context in the globalization indicators the fiscal barriers that are linked to increased migration, trade, and investment. To the developing nations direct workforce is affected. This is well explained due to global trade and business ventures, majorly done between the north states. Hence, the influence extended to the south, mistily dominated by the developing nation. Implications on Trade Liberation and poverty reduction in the South States The standard theory of international trade has comparative advantage, emphasizes benefits distributed in the realm of trade. The concept is driven countries specialization in exporting its abundant reliable local products, while importing its limited products and services. The adopted policies have worked against domestic firms in the most of the developing notions. This effect is brought through removal of subsidies and the government firms basically the medium and small size firms. The global concept was developed objectively in creating positive changes for developing nations. Looking at the current reports issued by the World Development Indicators data system, the gross domestic products trade ratio between 1990 and 2003 among the south nations has increased, indicating a significant change in the economic performance of some countries. Studying impacts of globalization, it is important for one to isolate issues of countries uniquely. History, institutional practices, and the economic conditions best gives a clear distinctive dimension that is relevant to particular country. According to Epsteim (1998), countries that worked in fulfilling the agreements made in Uruguay, has seen an increased domestic income. The implementation works in line with the adjusted structural policies. On the contrary, the case in most developing nations, has taken a different twist as most of the countries are faced with increased poverty with Africa having the highest figure. This grants as the question on whether, the liberalization agreement increased earnings, improved labor and has a general contribution towards reduced poverty level in the South nations. Many of the commodities in these south states, more especially those in Africa faces technical barriers in penetrating the north trade markets. According to Thomas arguments in (1997) the fact that many scholars view it among things certain that work in increasing poverty rather than reducing as the factual objectives of this globalization agreement indicates. The situation remains difficult to be separated the traditional factor, that relate to countries economic development. Hence, creating a wider gap as it is difficult for the south countries to achieve their social, and targets under the current micro-economic policies. Despite these slight disparities in the composition of either side, there is a general agreement that the majority of the economical differences are brought in place through structural adjustment programs as recommended in the millennium development agreement. Majority of people in these countries be it in the formal or the informal sectors faces similar problem. For example the basic necessity on health, social security, education and so forth, all of which are sponsored by the well established donor countries from the north. The subsidy extended through government reduction on expenditure creates revised living standards. This lifts them the poverty trap, this is a crucial agenda that calls for support. The Employment impact Globalization and employment relations, is of growing significance and majorly depends on the policies of the states involved. Employment mobility is recognized as one of the major drivers of global economy. However, views on its role in the relationship between the global north and global south contradict. As globalization, would be used by many in referring to different ideologies. According to (Freeman, 1998), the North and South countries has a varied standard of wealth introduction of global laws that works in favor of labor mobility creates a technical gap in the slowed growth free trade in the south as most massive workforce will prefer to work for a better pay. This contributes in developing the outsides economy through taxable profits generated. It remains evident that the global north has consistently used its multinational corporations to their advantage. Furthermore, the northern corporate companies, through eliminated trade berries takes advantage in exploited the global south by importing cheap labor. The introduction trade policies abolishing border barriers, further worked to the advantage of the developed countries. Several scholars felt this was one virtue that was well perfected by the North states, aimed at earning their interests. To them globalization dream is an idea developed by mainly developed countries targeting to boost their national interests and needs as suggested by Madunagu (1999). The author further suggests pinning down the north- south global relations, an objective of Economic Globalization only makes the global south poorer. As this idea, serves single interest of the developed nations by opening up borders and creating a free trade across the world. This works in the favor of nations that are financially superior. In majority of the Southern countries Globalization transcends trade agreements, unity against terrorism, information technology and sports to encompass wider social and economic fields. The issue of globalization in many cases has been discussed in reference to the southern hemisphere and the northern one. Globalization is viewed as way of linking the more technologically advanced north with the poorer south. However, given the historical relationship that exists between the Western countries and the African states serves a clear distinction that have on several occasion raised counterarguments, that globalization will only serve to widen the gap between the global north and the global south. This highlights some of the misconception and unfair treatment currently executed in attempt to build a trading and the corporate led ideologies on the global scene. The global crisis in the developing nations Following a period of economic difficulties, a financial bubble on the global scope busted. This rendered most of the developing nations in severe trouble in all aspects that contributes positively towards uplifting a given economic set up. The financial crisis is not only felt by most of these south countries but it’s extended to the north. There are evident reports indicating world’s largest financial institutions run it collapsing state. Most of the institutions serving in the south states have been bought out by their competitors at extremely lower prices, with worst cases calling for government interventions through extensive rescue packages for part of the remaining reliable institutions. Many states’ in the south, particular the African continent states are slow to the whole global relationship issues. There are claims that indicate bail- out resulted from the apparent global socialization of costs, with a varied decision on having profits privatized. The witnessed problem remains unfortunate case, responsibly inflicted by ideologies of embracing globalization. However, to the successful nations, they proudly accounts of their increased performance in the whole concept of understand different agents and channels of globalization. Economic globalization is the most apparent and influential in modern times. The British House of Commons defined economic globalization as the global integration of national markets- involving the growth of trade in goods and services and increases the mobility of capital and labor flows across national frontiers. There are policies and improved technological development that has worked increased cross-border trade as the world trade marks a new face. For the south countries investments is reported to have doubled. All the same this does not trickle down to the poor as much of the profits is utilized by the foreign investors. Some few years ago, the IMF identified economic growth as product of globalization to benefit most the global south. This was expected o be achieved through movement of capital from the global north to the south by MNC’s and by NGO’s. The IMF and the World Bank also chipped by granting loans and donations to majority of the countries in the global south in order to boost their economic wellbeing which would be instrumental in mending the bond between the global north and the south. In fact, the UN has passed a number of resolutions that were aimed at making the global south play a more active role in the global economy. UN Resolution 3202 adopted the Program of Action which put forward proposals from revamping the international monetary system to boost development projects in the global south. In 1980, another resolution, 35/36 launched the New Development Strategy. This strategy aimed at achieving GDP growth rates of 7.5%, 8% growth in exports, 28% growth in investment, substantial reduction in mortality rate among other targets. Ten years after the program was rolled out, the targets were nothing but a mirage. Nonetheless, some countries such as South Africa made considerable progress (World Bank, 2002) The growth of the global north economically and technologically is set to reach the global south through globalization. Wiarda (2007), suggests that the business based in the global north are slowly realizing the benefits of employing foreign dire investment in the global society in order to enjoy the comparative advantages that come with operating in the south mainly labor. The poor workers in these countries gain jobs which are hard to come by given that majority of the poor countries in the poor south record high unemployment rates. Labor Earnings and trade in the South countries The labor market has a connection to trade and poverty issues. Labor has severe influence on production, yet it enables consumers to benefit from their earnings, hence influencing the daily welfare. Economists have examined inequality in the labor market, linking the phenomenon different reasons that are of either affected through variation in supply or demand in the market. To them the political and social relation gets in only in creating market interaction in readiness for the involved force to have the required policies implemented. Their argument on this is based on the understanding of globalization as a process that allows counties better opportunities for economic political and social development. The authors indicate that there are cleavages that separate the north from the south and the cleavages have been widening instead of narrowing down. This is most apparent in economic globalization because the global north monopolizes economic growth and integration. Introduction of technology ideas such as the increased advocacy for the online trading further works in a manner that tend to shift the labor supply and demand curve designing new sector. Hence, reduced labor chances in the older sector, this affects as part of the laborious will defiantly loose employment, for instance the trade alliance by Canada, Mexico and the US. This trade agreement was arrived at without making proper considerations on the effects on Mexico, which had negative effects on the labor sector in the trading industry. The concept further address issues concerning wage inequality, in assumptions that are based on improving trade and realizing the industrial development goals. Rao (2001) looks at globalization as a political level is used to make way for economic exploitation. There are discusses in depth that concerns the issue of judicial globalization and how it impacts north south relations. The concerns aims at achieving considerable respect for the human rights, democracy and the rule of law are viewed by the global north countries as the pillars of good governance and have been imposed on the global south as the reliable deal for development. With the end of a traditional modes of trade the current trends in globalization encourages capitalist traits. This was purely adopted immediately the global policies were put in place, as new trading levels were realized. Which, encouraged alignment and liberalism traits on the global scene characterized by extreme forms of nationalism and a deficiency in proper institutions to facilitate orderly exercise of the new found political and economic liberties. Consequently, international criminal organizations created to be in charge. On the contrary, there has been considerable expansion in the international laws. An action that prompts increased concerns. The laws are seen to be important in liberating the southern people from unequal treatment and in redeeming a fair global level affairs platform for all countries. when it concerns political, economical and social influence. The advocacies by the capitalist in the world system exercise a new form of non-coercive domination over peripheral and semi-peripheral regions. The reports believes that globalization is well manifested through the international criminal court and a more flexible dispute resolution model in which, as opposed to the traditional systems, individual , national courts and non governmental institutions have an active role reinforcing . Such multilevel interactions have facilitated domination of the global south in legal principles as global south enterprises are left venerable in delivering as per the law requirement. The global north understands, as opposed to the legal principles of their own countries (United Nations, 2008). According to suggestions made by Freeman (1998), the social gap between the global north and the global results from economic disparities and the new economic systems. Have their major cause that roots from mobility of labor in either direction exposing the north to the deficiencies of the south. This has resulted to social exclusion of the global south. However, ultimate solution to these increasing problem can only faced off through equal participation of the south on matters that concern poverty, economic growth, political issues are well governed. There are arguments by Das (2001), that are reported to support this implications witnessed in south. This region is generally viewed to be predominately faced with poverty issues. The political policies in these states are reluctant in embracing and fulfilling the global agenda in trade and other social issues. An act that is termed to be unfortunately and its execution favor the norths that are keen to meet the required demands over the south states. This creates an increased exclusion of poor and the rich states, as their influence in decision making is of no significance. On the other hand is opposed to the use of the term social exclusion of the south claiming that the term does not reflect reality as the middle income people in the global south actively participate in social activities revered by the global north. A further report indicates that the contemporary accelerated globalization is multidimensional, non-territorial, unidirectional, and the lines of inclusion/exclusion are blurred and run between the middle classes and the poor North and South. Therefore, according to the globalization trading policies implementation, the exclusively close create a greater divide between the global north and south but neither does it facilitate closer relationship between the two. Nonetheless, the author recognizes that imperialism leads to social exclusion between the north and the south though the author makes no connection between imperialism and globalization which is openly recognized by (Khor, 2006). Poverty Eradication in the South States The ultimate goal in creating global market was primarily established to reduce poverty with a specified period. These are well identified to be the millennium development goals, which were initially predicted to be achieved by the year 2015. However, there current arguments based on trade liberalization contribution to the poverty reduction, with the general concept derived from the standard comparative benefit theory and the plentiful factor of production. According to Guay (2007), there are several arguments on the real significant role of trade liberalization in reducing poverty, while increasing the gross domestic product (GDP) across the world. For example, the ready estimates indicate positive impact on income of south countries with portion of about 20%. While the north states have 80% of the entire global income, which is estimated at $ 93billion. Levy-Livermore (1998) studies concerns trade and poverty improvement, they further argues that trade liberalization has positive effects on income and employment of poor people. Most of the southern products are depressed by government support particularly the US, China and members of the European Union. A number of authors agree that defining globalization as a stand alone is concept is very hard though it is very evident through its dimensions such as the internet, cultural fusion, global financial markets, terrorism and climate change among other issues. The relevance of these dimensions in this era of globalization brings out a debate. According to arguments made by Chen (2003), the global implecations has revelation indicators in for example among the Western African states like Benin, Mali and Burkina Faso, as per the UNDP on Human development index has records indicating more of their population living below the poverty line. There certain basis indicating that cotton in the global trade marks one strategic instrument that eradicates poverty level in the three countries and other big number as suggested by Siddiqui, (2007). The other side of the debate argues that increased globalization through fused culture and homogenized markets will bridge the gap between the global north and global south while there are arguments against this perception that that claim that globalization just widens the gap between the global north and the global south politically, socially and economically. In 1997, the Secretary of State for International Development in the UK, Clare Short captured the magnitude of globalization her statement. To the local economist in these south countries the abundant yields earned from most of their agricultural products contributes towards rural income generation and employment for these inhabitants. It is therefore apparent that, globalization cannot be denounced, ignored and neither nations remain indifferent to it but must take active measures to manage it to their benefit. On poverty reduction, Dei (2006), in his study feel trade policies, has little significance in helping the south states in Africa and labor market mobility in south Asia The global north stand accused of exploiting the poorer global south to their advantage. In his article Dei argues that poor people will at all-time never have a share from opportunities created through the liberalized trade. This according to him gives clarity on the problem increment even after this measure has been affected through economic globalization, which begun after Second World War (Britain parliament) produces wins for big corporations. However, other authors such as Davidson view the global north as comprising the developed countries that were front runners in industrial revolution with other countries such as Brazil and India and China being in the transition period where they will soon join the global north courtesy of their rapid economic and technologic development. Conclusion The objectives of the globalization, aims at achieving reduced poverty, creating a liberal and structural policy that will work towards encouraging global trade. Hence, reducing the rich- poor gap among the north and the south countries, the application of these policies requires well structured policies to work in reducing chances of having winners and losers in the international trade market. The reviewed reforms, has limitations as basically more than 1 billion people on a global case live under a dollar per day. This remains a bigger challenge. This explains the difficult strategies and decisions making, the objective has to involve. Despite varied problems, there results to count on, which is basically as result of a balanced state of living across the world. This was initiated to equally promote national economies, social issues and create great political relationship that fully supports global trade. Bibliography World Bank, 2002, Globolization , Growth and Poverty: Boulding an inclusive world economy. Oxford University press, London. Thomas, C 1997, Globalization and the South, Palgrave Macmillan, London. Chen, J.-r., 2003, The role of international institutions in globalisation: the challenges of reform, Edward Elgar Publishing, New York, Das, T 2001, mplications of globalization on industrial diversification process and improved cometitiveness of manufacturing in ESCAP countries. Toronto: United Nations Publications. Dei, G. J 2006, African education and globalization: critical perspectives, Lexington Books, London. 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J 2007, Globalization: universal trends, regional implications, UPNE, New york. Read More