What are the Major Problems and Issues of Globalisation?

Sustainability:

Development of globalisation can be defined in terms of its many dimensions process, production, trade, consumption, social-economic welfare, financial strength and stability, environment protection disaster management and so on.

Sustainable globalisation should be the spread and development of integration that is economically viable socio-economic policies and natural environment friendly in all its dimensions, leading to prosperity and welfare with social equity-catering to the basic needs of all and that all should have the opportunity to fulfil their aspiration for a better life, (see Payne, Joyner and Dauterive, 2001)

Sustainable globalisation growth is the growth that is lasting and not reversing. Sustainability of globalisation process is challenged by certain major problems, such as:

1. Volatility in liberalised or more open financial sectors in developing countries

2. Marginalisation of non-global sing nations

3. Short-run disruptions and rising unemployment due. To technological change in some developing countries under global links

4. ‘Knowledge Gaps’ among the nations.

An appropriate policy and programming is needed to deal with such emerging challenges in the New Economy.

Environment and Globalisation :

Care for the nature is inevitable for the sustainable development and global prosperity. For as natural resources diminish, costs rise, capital formation tends to decline – new capital formation may fall below depreciation, causing the collapse of the industrial base. Long back in an empirical study, by Meadows and Randers (1974), it was projected that, at the going growth rates then the planetary limits to growth will be reached sometimes in the 21^st century. The fear of crises posed then is looming now. We need to look seriously into the question that: Can the globe assimilate the massive pollution and resource depletion at the on going rates of the global economic expansion forever in the present century?

As the Brandtland Report mentions: “Sustainable development is a process of change in which the exploitation of resources, the direction of investment., the orientation of technological development, and institutional change are made consistent with future as well as present needs.”

Many developing countries are under enormous international eco-political pressure to accept globalisation in haste, which is likely to put excessive strain and overexploitation of their resources disregarding the environmental ecological balance.

The critical situation prevailing in many part of developing countries at large indicate almost tragically destructive interaction between economy and ecology (Simonis and Von Weizsacker: 1991).

The Problem of Inappropriate Technology :

Most technology of the past, now being transferred to developing countries, under the process of globalisation and FDI, are tantamount to more destruction of the environment.

These technologies aimed at maximising labour productivity by exploiting nature’s infinite storehouse, which is now being emptied by the wasteful exploitation. A new technological generation, which maximise the productivity of the natural resources, is essential. Recycling, conservation of resources, reduction of wastages and such other measures to alleviate environmental abuses require new technologies in the fields of product design, manufacturing and product utilisation. Probably, each country should chart out its globalisation plan and programme.

One should welcome FDI induced globalisation; but the current “dinosaur technologies” of the industrialised countries should not be permitted to be transformed to the developing countries. If the situation is not controlled more ecological damage would spread, leading to global disaster. Apparently, there is the need for a new generation of ecologically sustainable technological, side by side, with IT development that exists world-wide (Simonis and Weizsacker, 1991)

Under the market-orientated globalisation, it is hard to believe that such a new technology generation will evolve on its own. The market needs inducements through political incentives.

Environmental friendly technology possible to be invested and innovated when it is supported and also compelled by government of different nations. Government’s sanctions and incentives packages can inspire to generate environmental friendly new technology. A globalisation plan can help in this matter. In fact, the WTO should include a new chapter “globalisation” by creating a special cell for the purpose. There is an urgent need for some kind of “Environmental Marshall Plan”.

The UNCTAD should initiate discussion on framing a “Globalisation Marshall Plan” for the developing countries to solicitate their mutual cooperation for coordinated development and economic progress towards globalisation process aiming at optimum utilisation of their resources in a balance manner for their sustainable growth.

Simple truth is that when any country is seeking sustainable development and growth, its resource have to be exploited more efficiently with more strict protection of its environment by reducing wastage of resource wastage of resources and environmental by reducing pollution.

Ecological Ethics :

In the global economic pursuits ecological ethics should be the handmaid of the business ethics. A clear perception towards ecological balance in ethical manner is required. Intrinsic values of non-human inhabitants should be equally recognised.

A thorough reappraisal of currently dominant anthropological attitude is warranted. A shift from human-centred approach to nature-centred is desirable towards the policy of environment protection and disaster management by placing humanity on an equal footing with the natural world (see Payne, Joyner and Dauterice, 200 1).

A synthesis of the short-term as well as long-term global business perspective and an ethical perspective is called for. Business manger just-should not owe a fiduciary duty to serve the best interest of their share holders to ‘pay’ for sustainable development but also to care for the potential future safeguarding interest of prosperity towards the global society.

Global Business Ethics :

Incidentally, global business ethics poses another equally important question: How to deal with the differentials in consumption and economic welfare in developed versus less developed nations? How does technology help in this regard? Can market economy solve the problem effectively? How is business responsible in this regard? What the government can and should do?

Market Economy and the Government :

In a developing economy characterised by several socio-economic constraints towards reforms, structural adjustment and the development process, the market cannot be the be all and end all of all of state policy in the newly emerging global economic order of more openness and liberalisation.

Globalisation has its virtues and vices well. For a country, when nation building is a first thing, maximisation of the national product need not be the sole objective of its politician regime (Dasgupta, 1998).

Market cannot function smoothly without institutions. The government in a developing country should examine this issue in depth and try to overcome its institutional ‘gaps and constraints’ to growth and globalisation.

A country, operating in a world plunged with trade distortion, scarce reserves., under-utilised and undeveloped resource, non-aligned period and social costs, rampant private rent -seeking in internal and international markets, cannot afford to go ahead with regulated/unmanaged global capitalism of free market economy.

Especially the global growth and market alone cannot take care of problems such as distribution, lopsided of development, social/racial imbalance, sub-culture of poverty and other distortions. A simple linear relationship between globalisation, economic success and socio-economic welfare is hard to establish in a developing country.

In most developing countries, it is presumed that the government can and should solve all problems. And, in the name of social justice, when the government has become the sole but weak trusty of the welfare of the people, individual’s effort, initiative and responsibility have been down graded (Patel, 1998: 136).

The agenda for sound micro-economics policies in framing the strategies for sustainable growth under globalisation of a developing economy is all varied and long one; that has to the harmonised with legitimate social objectives and actions. This requires a lead and radical departure in policies, attitudes as well as political behaviour. (Patel, 1998:133).

Besides emphasise on a degree of equality and eradication of poverty, overall well, being should be aimed at in economic policies in a global sing developing country. The policy makers may have broader vision towards uplifting the welfare contours of the common dreams of the average people; such as, the desire to acquire a house, or a car, enjoy a few luxuries, provide higher education to one’s children and not just with the nobler motives ending at basic minimum wants on first things first meant for the people of large.

World Bank’s market-center-ff Ir-economy formula: liberalisation privatisation and globalisation (the LPG Model) in to just cannot ensure developmental success and sustainability of growth to a developing country.

The government in a developing economy should evolve an appropriate “mix” of the LPK Model suitable of the country’s socio-economic political environment. Its macro-economic policy should reconcile both demand and supply management under the adjustments and globalisation programmes and establish a social-economic sustainability net.

‘The social-economic sustainability net’ towards globalisation may include several instruments amenable to the operation thrust, such as:

1. Targeted Provision of subsidised basic goods and services such as: food, education, public health supply of water, electricity, and other necessities for the poor strata the society

2. Employment services and re-training

3. Infrastructure development in rural areas

Games of Globalisation :

Global economic players play the game. Often they are tempted to withdraw from a multilateral approach and resort to blatant use of bargaining power of the national, economic and political competitive advantage. Even rules of fair games are not just flaunted but developing countries are always reminded that positive sum games are not easy to play in a global economy.

There can still be battle over who gains more and who gains less. (Patel, 1998) the gains from globalisation also pose an important issue about not just distribution of gains among countries, but its disposal among group within nations as well as. The dimensions of conflicts need to be resolved. Discussion, deliberations, decisions and design by all the concerned decision-makers is required.