Globalization: Recipe or Bane? This Research Paper Has Been Prepared in Two Parts: One Dealing with Overall Globalization and Its Ramifications and the Other Concerns Pakistan. (Cover Story)

By Asad, S. Hasan | Economic Review, July 2002 | Go to article overview

Globalization: Recipe or Bane? This Research Paper Has Been Prepared in Two Parts: One Dealing with Overall Globalization and Its Ramifications and the Other Concerns Pakistan. (Cover Story)


Asad, S. Hasan, Economic Review


In the changed environment of globalization, there is no room for rent seekers. Industrial magnates used to skim off entire capital within a very short period after investing only 20 to 25 per cent of equity, ending in huge non-performing loans (Rs. 279 billion in March 2002.). Tax evasion and state patronage had been order of the day. Our tycoons were engaged in "processing" rather than "basic" manufacturing, relying upon imports and enjoying windfall without regard to productivity or technological improvement. Now a radical shift in approach is inevitable. Is it a tall order?

PART-I

Background

Globalization became mantra of 1990s after the dismantling of USSR and, therefore, the communism as an effective force and the affirmation of superiority of capitalism as a viable economic system. Yet, its genesis dates back to the late 18th century when the colonial powers (centre) launched trading activities with their colonies (periphery) in order to improve their well-being (wealth of nations). In doing so, they exchanged their manufactured goods for raw materials produced in the colonies and, therefore, the latter's terms of trade were unfavourable. After the Second World War, the trading arrangements were made to improve the lot of the periphery with massive economic assistance programmes from the US and its allies. Therefore, the volume of international trade soared significantly since 1945.

Globalization broadly refers to promotion of free trade between centre (North) and periphery (South). Now the world is a global village with cities of the North and the South interlinked by fast transport and communication system, resulting in rapid shrinkage of the world. There has been large scale flow of private capital as well as migration of the people. Whereas the North encourages the flow of capital but abhors migration from the South (a point raised by Malaysian Prime Minister, Mahathir Mohammad) barring in such sectors as computer technology where thousands of Indians are working in Silicon Valley of the US. Private capital inflows into developing countries and into the former Eastern bloc increased six fold from $53 billion at the beginning of the 1990s to $302 billion in 1997. Large parts of Asia and Latin America were suddenly transformed in the minds of international investors from poor "developing countries" into "glistening emerging markets". At the same time, new financial instruments such as hedge funds and derivatives created an explosion of foreign exchange trading, with an outstanding $1.5 trillion now changing hands everyday.

According to Hilary French, globalization has become a common buzzword. To some, it is synonymous with the growth of global corporations whose far-flung operations transcend national borders and allegiances. To others, the term is closely linked with the information revolution and the mobilization of money, ideas and labour that computers and other new technologies have been instrumental in bringing about. Yet, to French, "globalization is taken to mean a broad process of associated transformation in which numerous interwoven forces are making national borders more permeable than ever before, including growth in trade, investment, travel, and computer networking". (p. 184, Reference 1). He uses the term ecological globalization to mean" the collective impact that these diverse processes have on the health of the planet's natural systems". (p. 184).

James H. Mittelman discusses globalization in terms of international division of labour. To him, "division of labour theories are a valuable tool for examining global restructuring, especially because they identify major trends that constitute the changing social geography of capitalism". (p. 290, Reference 2) ... the dominant conceptualisation of globalization rooted in liberal economic theory serves the interests of the beneficiaries of an expanded market" (p. 291) Mittelman argues that "globalization does not sideline the state but rather forces it to accommodate domestic policies to the pressures generated by transnational capital. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Globalization: Recipe or Bane? This Research Paper Has Been Prepared in Two Parts: One Dealing with Overall Globalization and Its Ramifications and the Other Concerns Pakistan. (Cover Story)
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.