Written by Sajjad Hossain Adib, a student of the University of Science and Technology, Chattogram (USTC)
Globalization means the increasing interdependence of the world’s economies, cultures, and populations. It is brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. Many countries have established partnerships to simplify these movements. The term gained popularity after the Cold War in the early 1990s. It primarily focuses on international trade and investment with an emphasis on advanced economies. The effects of globalization are complex and argumentative, as it offers major technological advances but also faces allegations of harming certain groups.
How Did Globalization Start?
From ancient times, humans have moved from one place to another, enabled by improvements in technology and transportation. The first “wave” of globalization was propelled in the 19th century by European colonization and breakthroughs like steamships, railroads, and the telegraph, which increased economic cooperation. This trend decreased due to World War I, followed by postwar protectionism, the Great Depression, and World War II. The second wave of globalization started in the mid-1990s with the United States of America as a leader.
Benefits of Globalization
Before World War I, globalization was at its peak because advances in technology allowed people to get goods and cross borders with great speed. Economist John Maynard Keynes recalled how a native of London could order by telephone, sipping his morning tea in bed, and expect various products from the whole earth in such quantity and at a reasonable cost and early delivery upon his doorstep. (E.g., sugar from Jamaica, tea from India, and butter from New Zealand).Many people supposed that this kind of independent global economy would guarantee peace and prosperity.The world weighed in favour of globalization in the late 20th century because Communism collapsed and the European Union expanded. Free trade policy started to grow greatly. Seeing the mutual benefits, many organizations like ASEAN and BRICS have been established. The migration of people has surged; today, over 15 percent of people living in America were born abroad, surpassing the previous high of 14.8 percent in 1890.
What Went Wrong?
Initially, globalization was viewed as a “win-win” for all, and leaders like Bill Clinton promoted free trade (e.g., WTO, NAFTA). This benefited big companies and consumers greatly. However, many workers lost their jobs as companies moved production to cheaper countries. Globalization made some people richer and created inequality. Events like the financial crisis, pandemic, and China’s rise exposed the weaknesses of global trade. According to the book How the Globalization Gamble Went Wrong by David J. Lynch, the failures stem from the 30 years of the “China shock,” corporate greed, financial crises, vulnerable supply chains, and the pandemic. Other factors include inflation, supply chain disruptions, trade disputes, and national security concerns.
Is Globalization Over?
According to David J. Lynch, globalization is not dead, but rather it is changing. Countries are now preferring “selective globalization,” meaning they trade in some areas but protect others for national security or jobs.The future will be more about regional cooperation (like within Asia or Europe) rather than one big global system.
In Short
Globalization has benefited the world in many ways but has also caused problems for many people. The challenge now is to build a fairer and safer global economy where no one is left behind.
