Is Hyper Globalization a Threat To the Mankind?
Keywords – Hyper Globalization, Global Integration, Globalization, World Economy
Introduction
Globalization is the mechanism by which knowledge, ideas, information, goods and services are broadly dispersed throughout the world and is is operated by blending cultural and economic systems. This concurrence aids and develops in increased alliance, intercommunication, collaboration, integration and interconnection among nations. The world becomes globalized when countries in different parts of the world are interwoven economically, politically and culturally. It expands the assimilation of economies around the world through trade and financial flows to get optimized returns and for the well being of people. Globalization resulted in the rising interdependence of the world’s economies, cultures and populations proposed by trans-border trade in technology, people, goods, services, information and investments.
Evolution Of Globalization Phenomenon
The period from early 1990’s there has been a dramatic change in the way business is done throughout the world. This change in size, scope and velocity in operating businesses globally was being observed. Hyperglobalism was noticed for the first time around 1980-1990 and continues to the beginning of 21st century. Rapid trade integration among countries is known as hyper-globalism. The hyper globalization era started around the early 1990’s when an exponential rise in world trade amidst nations were observed. This hyper globalization era is still on the run. Hyper globalization covers the three main dimensions of economic globalization, cultural globalization, and political globalization.
Globalization and Economy
The period of hyper globalization has been associated with the most dramatic turnaround in the economic fortunes of developing countries. Hyper globalization is based on the concept of homogenous global culture throughout the world. It has led to the flooding of multinational companies in the global market. GDP rose from 15 percent to 26 percent during the period 1992-2010 from merchandise exports alone as a result of hyper globalization. Exports alone contributed to 33 percent of GDP. The Information and Technology(IT) sector witnessed sharp decline in their costs but there was no much decrease in travelling costs.
The existence of hyper-globalization is clearly implied through substantial rise in Foreign Direct Investment (FDI). Global FDI as a percentage of world GDP has grown seven fold. Dematerialization of globalization – Important is considered more to services than material. Hyper globalization lead to more widespread and democratic output available to businesses throughout the world. It has lead to bilateral relationships between countries and different regions in the form of trade agreements. Through hyper globalization, countries are able to produce things where they have a comparative advantage and import those that can be made at a lower opportunity costs. Hyper-globalization and leveraging comparative advantage work well in a world without geopolitical frictions or natural disasters.
How is Hyper Globalization creating a better prosperous world?
With the arise of hyper – globalization era movement of goods, service and men have become a necessity rather than a luxury. Knowledge in terms of culture, religion, politics and technology changed the views, ideas, thoughts and imaginations of people. People all over the world started sharing their views and opinions on specific topics which gave them more influential views on such topics. When people started getting a liberalized view on different affairs it led to the arousal of democratic movements all over the world. People started realizing their rights and are striving for a democratic environment where each and every one of them can express their thoughts as an individual. The demand for sustainable development is also the result of democratic movements conducted in different parts of the world.
Increased Employment Opportunity
Globalization is the main reason for vast employment opportunities worldwide. Remittances form a major part of income of many nations including India. This increase in prosperity is made possible due to hyper globalism. Hyper globalization made people know about the importance of quality education and facilities are made available to make sure that every nation enjoys these benefits. Many Indian expatriates live in USA, Saudi, Western Europe. These individuals develop their human capital through good education and skill development, which is an important asset in creating prosperity of a nation.
Integrated Development
The importance of health and technology also came into consideration as a result of hyper globalism. People had put their lives to sacrifice to research and find cure for diseases like covid-19 and vaccines were made available to different parts of the world within months of its development as a result of hyper globalization. Earlier birth of a girl child was considered as a burden and many kids were killed right after birth due to such ill reasons. But as the world becomes more civilized, people have changed their views and women are being empowered in the society. Hyper globalization is one of the main reasons for such changes and this can make the world a better prosperous place to live.
How Hyper Globalization is threatening Human Prosperity?
Hyper globalization has a lot of advantages which created much benefits to the nations worldwide. But it has also affected human prosperity negatively in terms of culture, economy, ecology, politics and technology. It lead to economic imbalance among nations where one country benefits at the expense of another. Developed countries capitalize developing countries which results in wide disparities between rich or affluent and poor countries, people within these countries also experience a huge division amongst themselves. This has resulted in countless crime cases happening recently between rich and poor. Developing industries and increased pollution is dangerous for the survival of human population. Unemployment created due to lack of technical knowledge which is essential in world of competency and skill are some of the reasons that hinder human prosperity.
Creating Cultural Miscellany
Culture is the most important wealth any person can have. Every nation has their own culture which each one of them should be proud of. Culture is based on the history, values and beliefs that binds a nation together. Hyper globalization diminishes regional diversity extensively. People discern westernization as globalization. Nowadays people consider western lifestyle as the branded culture to be followed. Food values of many have changed, which led to a lot of health problems in eating among youth. English has become the universal language and the overuse of this language is threatening other minority languages. People are treating each other informally without any moral regards in the name of progression. By reducing cultural diversity hyper globalization is threatening human prosperity.
Global Polity
Hyper globalization also affects human prosperity politically. Democracy is considered to be the fastest development method for a country where everyone are given equal votes and rights to express their opinion. Democratic movements are spreading to all parts of the world due to hyper globalism. Democracy is being highly supported by Western countries. This created turbulence in many regions of the world especially the Middle-East nations. This commotion created instability among nations and led to the development of terrorist organizations such as ISIS. All this has destroyed human prosperity like never before.
Economic Impact
Hyper Globalization heightened the exploitation of impoverished nations in the name of growth and increased inequality around world. Technologically enhanced companies such as Google, Facebook, Twitter attain lots of profits. But their services cannot be enjoyed by many and it creates insecurity amongst those who cannot avail these services. An economy seems to be prosperous only when everyone in it are treated fairly.
Hyper globalism has resulted in the WTO agreement on Agriculture. This scheme reduces the prosperity of farmers by curbing government aids to them. Agreements which are similar to this such as TRIPS, where every individual is not able to enjoy the benefits of innovation also hinders human prosperity.
Environmental Degradation
Hyper globalization led to the emergence of numerous industries worldwide as a sign of development. The advancement of industries and the pollution caused by their emergence is a threat to our surroundings which makes Earth a crucial place to live. The increased raw material extraction and deforestation is hazardous to our environment. The indigenous lives of people are not valued at the least. Global warming, climatic changes, polluted rivers, damaged bio-diversity, new disease outbreaks such as covid-19 and threat to the emergence of new viruses are the results of the developments made in terms of globalization.
Cyber Warfare
All these impacts intimidates the well being and survival of human beings. Human lives can also be endangered technologically. The hyper globalization era made it easy for the exchange of dangerous weapons. Cyber warfare emerged as a result of technological development is creating majority of problems between world economies. Cyber war can destroy countries economically, financially and technologically which thereby interrupts the peaceful lives of people living there. All these factors threaten the human prosperity.
End Note
Hyper globalization cannot be completely considered as threatening factor to human prosperity. The impact of globalization in different countries and how they are implemented in each of these nations matter how threatening they are. When things are desired discreetly and achieved rigorously the end result would bring negative impacts. Hyper globalization should be trailed rapidly where positive effects offset negatives.
Globalization can be strived swiftly at the current pace or even at higher pace but these changes need to be proceeded cautiously by considering sustainable development, culture and needs of the nations. The major reason for hyper globalism to become a threatening factor is because it increases inequality among individuals and creates huge difference between rich and poor. If all these factors are taken care of, then hyper globalization brings more benefits than challenges.
Written By – Ruby Sebastian
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