Positive Effects Of Globalization - The Pro Globalization Argument
By Environmental Editor
The effects of globalization are shared by consumers, workers and nations alike ...
Ex-president Jimmy Carter once said, "Globalization, as defined by rich people like us, is a very nice thing... you are talking about the Internet, you are talking about cell phones, you are talking about computers. This doesn't affect two-thirds of the people of the world." He reminds us of our increasing dependence on foreign imports, which is just one of the effects of globalization. This can be scary to some of us who can't imagine living without a cell phone or other electronic devices, but pro globalization economists remind us this also means keeping prices low.
The effects of globalization are shared by consumers, workers and nations alike. The most basic principle of economics is that competition ensures quality, drives down prices and offers choice for consumers. For workers, competition means higher wages, and sharing in the benefits of globalization. Nations can become competitors in the global market, increasing GDP and per capita incomes, while gaining greater access to raw materials.
Undoubtedly, the effects of globalization are best seen in developing nations - places like Korea, Singapore, Bangladesh and India. Over the last few decades, the number of people living on less than $1/day has been cut in half for the developing world engaging in global trade. However, for untouched regions like Sub-Saharan Africa, the poverty levels have remained fixed at 45% of the populace since 1981. Additionally, average life expectancy has gone up from 55 to 65 over the last thirty years and infant mortality rates have fallen roughly 10% in areas kissed by business globalization.
While the positive effects of globalization continue, there is still some fear that it's at the expense of advanced nations. "One of the ironies of the recent success of India and China is the fear that... success in these two countries comes at the expense of the United States. "These fears are fundamentally wrong and, even worse, dangerous," warns Jeffery D. Sachs, the author of The End Poverty. They are wrong because the world is not a zero-sum struggle... but rather is a positive-sum opportunity in which improving technologies and skills can raise living standards around the world." He points to US studies that show average compensation up 22% and 16.5 million more people working compared to the 1990s. There will always be globalization issues to be cautious about, but the benefits of globalization seem to outweigh the negatives.
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