World's rendezvous with globalization, is it peaking to recede?

Globalization is the cliche of the present times and remains controversial among intellectual galore and people at large. As the tentacles of globalization have started spreading wide and deep, its effects in positive and negative variants have begun to surface now. Globalization has produced growing economic interdependence of the world by the means of cross-border flows of capital, finance, investment, goods and services coupled with increasing diffusion of technology.

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The real problem is the growing economic interdependence, which is extremely unbalanced, in other words, the benefits of linking and the cost of delinking are not evenly distributed. The developed nations are actually highly interdependent in their mutual relationships with one another. On the other hand, developing countries are largely self-supporting in economic relations but are highly dependent on industrialized nations. The opponents of globalization have always criticized it for producing sufferings to ordinary people across the globe.

In terms of its economic implications, globalization fundamentally means the collapse of national barriers against global business and finance. Supporters of Globalization are increasingly and repeatedly echoing that the present wave of globalization is unprecedented. However, those who lay greater emphasis on history argue that globalization was inherent and vital aspect of capitalism. They further say that the process of colonization of nations was in some ways a globalization process.

The brisk pace of expansion of global markets has not witnessed the corresponding development of social and economic institutions to ensure their smooth and efficient functioning. Labor rights have been disastrously less protected if compared with capital and property rights. In addition to it, the global policies on trade and finances are excessively unreasonable to the extent that they produce disproportionate effects on rich and poor countries and it consequently results in widening and visibly a very deep divide between rich and poor. Poverty and inequality are growing deeper incessantly as an effect of globalization while it triggers prosperity for a few countries and people. Therefore, these marginalization and exclusion for many have far reaching implications in terms of social and political stability, among as well as within nations.

Notwithstanding globalisation of democracy, its quality remains highly questionable. Till recent past, it was being discussed that state policies no longer relevant and corporations would soon grow stronger than states. However, recent economic policies of different nations now suggest otherwise. The recent policies have outlines that states still matters and unlikely to be diminished before corporations. Evidently, the governments of the European Union, the U.S. and China have emerged as the crucial economic players at present than they were till recent past.

Therefore, there is now growing concern about the negative effects of globalization even in developed nations. Recently, Federal Reserve of US has raised serious concern of growing divide among people and indicated the globalization process should move in order to suite entire society. Now, states are playing key role for economic expansion though influenced by the corporations but still being the deciding authority.

The developed countries have started showing signs of taking their protectionist policies in order to protect domestic business health and coercing foreign trading partner to ease their policies to boost their exports. This has become abundantly clear in the failure of Doha round talks. On the other hand, poverty has been reduced significantly in one country, China. And China follows interventionist state policies that manage market forces. Is this situation suggests that globalization is peaking to recede?

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