Independent University, Bangladesh

Bashundhara R/A
DHAKA 1229

Department of Global Studies and Governance

School of Liberal Arts and Social Sciences

Critique Paper 1: GSG101-4

20TH February 2022

Done by : Ruhana
   

Course : GSG101-4

Course Faculty : Dr Shanawez Hossain

  Assistant Professor
  Department of Global Studies and Governance
  School of Liberal Arts and Social Sciences
  Independent University, Bangladesh
 Globalization affects everyone at large whether one prefers the process or not. The article
written by T. N. Srinivasan have portrayed the matter of globalization in an effective manner.
Srinivasan gives us an in-depth explanation on the factors of globalization whilst considering the
perspectives of people. The article talks about the start of globalization followed by its outcome
in the downfall and up rise of it down the decades. The author also stresses how most power in
trading is given to them who possess more wealth than the others.

The article begins by talking about the likeness of globalization by the users of the world
from both perspectives. Many are convinced that globalization has impacted many below and
above the poverty line while it may be true some academic analysts get on both sides. While
agreeing with the possible good of globalization the power structure of national and international
institutions cannot be unforeseen. It allows millions to be negatively affected whilst preventing
the good outcome of globalization to be realized.

Furthermore, the author goes on to define the term globalization, which in his words are
dismantling of state barriers to trade and the economic, social and political response to the
dismantling. The author proceeds to bring the ‘exogenous factor’ to attention by distinguishing
it, in large part, which could drive globalization away from affective policies. One of them being
the exogenous technical progress, by cutting down the costs of production goods as well as the
transportation and communication can trigger the international trade with a powerful force. With
significance, it is important to ensure that trade isn’t a zero-sum game, both parties mutually
agree to a voluntary trade gain.

The author then on sheds light on the history of globalization starting from its roots. The
process began mid-19th century up till the epidemic of the first world war. The obvious clash
between the major technical innovations and the take on free trade policy by the then major
trading nations occurred. Globalization today is at a much faster rate and in many ways also a
resumption of the first occurrence. Attempts made after the first world war to get globalization
back up and running failed miserably due to the economic fall of countries. Therefore, this
failure caused an economic stagnation of currencies leading to an increase in barriers to trade.
After significant reduction in tariff and non-tariff barriers to trade, multilateral trade negotiations
in GATT successfully launched the 2nd wave of globalization.

First 2 and a half decades into the 2nd wave has seen an unmatched number and rapid rise in
the world merchandize trade, followed by a decade and a half with 2 oil shocks, inflation in
industrialized countries and the onset of the debt crisis cuts down the growth in world trade by
half every year.

The author further presents the information logistically regarding the Uruguay round.
Intellectual property rights and trade in services were introduced under multilateral disciplines.
The author nonchalantly stresses on the participation of developing countries in world trade.
Specifically, in capital flows developing countries were left out along with no part in trade
growth. It only makes sense that the ones affected negatively will see globalization as a malign
force.

Free trade has been a crucial debate among critics as barriers against exports in poor
countries are much higher than in rich countries. Agricultural exports by poor countries are
driven away from world markets by being subsidized by rich countries. In effect, rich countries
have a veto in the weighted voting mechanism of international financial institutions. The
decision making progress in WTO by the poor countries do not prevail despite the one country/
one vote making process.

Many developing countries were opted out of GATT except in Tokyo and Uruguay rounds
in setting rules of trading. Articulated complaints against the world trading system and the urge
for a change was made in in the United Nations Conference on Trade and Development
(UNCTD) which had no role in making trading rules. Instead to a certain degree they
participated, they demanded and got a special and differential treatment (SDT).

The limitations the DCs had were to the extent where they could not stop the rich from
taking trade in textiles and appareling out of GATT rules. Nevertheless, the DCs did not expect
to play a vital role on the design of world trading rules due to small world exports. The DCs are
somewhat to blame for the world trading system being ruled against them. The only logical thing
to be done by the DCs would be to hold the rich nations to their accountability to decrease
barriers and to rid of subsidies in the trade negotiations.

The writer concludes the article briefly stating the adequate impact globalization left on the
poor countries on its high percentile remove of poverty. Globalization is meant to open vast area
of opportunities for higher rate of growth and poverty reduction to those needed most in poorer
countries where domestic economic and political environment is conductive.
 While analyzing the paper I found myself intrigued at the arguments used in the writing.
The article was informative in almost all aspects. While conceding with the benefits of
globalization, the author spoke of potential downfalls. While I agree that exogenous technical
progress has helped reduce costs for production of goods along with transportations and
communication I do not concede to the “zero-sum” game (p.1). Wealthier people often get their
hands on better access to technology than poorer people which gives the wealthier countries an
upper hand on more high end technologies than poorer countries. This causes digital division
which is still a small loss for one of the party compared to the other. (Drew, 2022)

Moreover, when the author points out some arguments as wrong and exaggerated I found
myself totally disagreeing with it (p.2). The barriers against exports in poorer countries are much
higher than those in rich countries, when poor countries are already struggling economically and
financially and over that have to pay higher to trade their exports it’s obvious that the richer
becomes richer and poorer get poorer. This argument cannot be wrong statistically and logically
when poorer countries dont just have more barriers but also are opted out of world trading
system in trade voting rules limiting them more to export.

Lastly, I found the author contradicting some of his own points where he mentions
globalization being an essence that creates opportunities for rapid poverty reduction in poorer
countries where none of his points support such a statement in the article (p.3). Instead he
mentions he finds it natural to why countries kept out of trade and capital flows find
globalization a malign force rather than an essence. To add to that, he also states it’s a mere fact
that subsidization of and domestic support for exports of agricultural materials are high in rich
countries which crushes the point of globalization being an opportunity for poorer countries.

It is important to educate more people on this matter to raise awareness of how

globalization is used to suppress the voices of the poor and unprivileged. There is room for
improvement when more light is shed on this and not just make a country great but the world
great with equity in economy, politics and rights in world trading system. Despite the article
being written in the early 2000’s it covers many problems that still exist today which emphasizes
the importance on change and growth.

References:

By Chris Drew, PhD / January 29, 2022. Technological Globalization – Examples, Pros And
Cons. Link: https://helpfulprofessor.com/technological-globalization-exmaples-pros-cons/