Aleksandra Tyurina
U6th Form
Dauntsey’s School
“In its current form, globalization cannot be sustained. Democratic societies
will not support it. Authoritarian leaders will fear to impose it.”
(John J. Sweeney)
Can Globalization Be Sustained?
If one looks at the media nowadays, one would probably notice lots of references to the
concept of globalization. This is a huge issue which is widely discussed practically all over
the world. Very often one sees the word „sustainable‟ next to „globalization‟. But what does
sustainable globalization mean? The question of the sustainability of globalization has arisen
as the process keeps growing. The possibility of maintaining it in the long run without doing
any harm to future generations and running out of finite resources has been called into
question. People are concerned that globalization itself has become almost uncontrollable
though inevitable in recent years.
There are various definitions of globalization. Since 1897 economists have been trying to
identify the process, but the term was not widely used until the 1960s. Paraphrasing a number
of definitions, globalization can be summarized as an increased world integration; the
integration of national economies into a single international economy. Integration occurs
through various economic activities, such as trade, foreign direct investment, capital flows,
migration and the spread of technology. This results in the reduction and removal of barriers
between national borders in order to develop international trade and cooperation. Deepening
this definition, globalization is a process which leads to the „co-diffusion‟ of economies. With
the development of globalization (i.e. when countries and economies start to cooperate), the
amalgamation of economies with each other occurs. This is why we talk about the effects of
globalization resulting in altered cultures and ways of living; changing people‟s perspectives,
which makes them travel and migrate around the world, and the resultant emergence of a
broader labour market; greater specialization among countries on an international level and
attempts to modify and adjust government policies to achieve a higher standard of living and
economic growth. Globalization is a driving force which makes societies and governments
reconsider systems after shocks, such as crisis or depressions, occur.
If we look at the history of globalization, lots of social scientists have different views about
the time it started. However, personally I consider that globalization started as early as people
began to trade with each other. Even trade in the form of barter can be considered an early
form of globalization as people tried to communicate and widen their borders: to integrate.
Communities, villages, towns, cities, countries… This was how it developed. It is possible to
talk about different examples of early globalization. It provided unique opportunities for
people, such as mariners and missionaries, like Marco Polo, to travel successfully and
profitably from one part of Eurasia to the other. By the 16th century, the world economy was
already globalizing, as for the first time the New World began to engage and cooperate with
Africa and Eurasia through journeys of discovery on cultural, material and biological levels.
Globalization goes beyond the common understanding of it as simply a development of
international trade. Globalization has always been there through the entirety of history,
gradually growing in size. It deals with every aspect of human social life.
Modern globalization can be thought to have started at the beginning of the 20th century.
As John Maynard Keynes perceived, “The inhabitant of London could order by telephone,
sipping his morning tea, the various products of the whole earth, and reasonably expect their
early delivery upon his doorstep…” Globalization can be compared to a giant making its way
through human societies and economic systems, influencing and changing abruptly the way
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Aleksandra Tyurina
U6th Form
Dauntsey’s School
people live and exist. The current impact of globalization is one of huge technological
improvements, the influence of organizations such as the World Bank and the World Trade
Organization and massive cultural change.
However, negative aspects of globalization, such as environmental issues, the erosion of
some cultures in exchange for others, and the global debt problem caused the development of
anti-globalization movements and created huge controversy about the process itself. The
debate is an on-going one, as it is difficult to evaluate both sides of the question and reach a
conclusion. According to John J. Sweeney, there is a possibility of rejecting globalization by
democratic societies and authoritarian governments. The question of sustainability naturally
arises: Is it possible for the world to live without the development of integration between
countries? Should economies become closed?
Economics, as a science, has always been tightly connected with politics. Politics is the
extension of economics – it is the way of expressing economics in society. Also, in Karl
Marx‟s analysis, economic circumstances are fundamental determinants of all social
relationships, as it is the economic environment that governs the behaviour of men by
assigning them particular roles. The economic environment greatly depends on the political
structure of a country. However, it is not easy to identify the nature of a political system.
We may be able to identify a form of government but there may be some disagreement
when analyzing its essential characteristics. For example, in trying to describe the essential
characteristics of democracy, one could say "elections." However, citizens of the Soviet
Union and the United States both voted candidates into public office, but the United States
was considered to be a democratic government and the Soviet Union a totalitarian one. If we
try to compare the ability of a democratic state with a totalitarian one to respond to economic
and other shocks, we may deduce that democratic governments would be more flexible as
they are more able to adjust their policies. In totalitarian states, the ruling ideas are built on
ideologies and fundamental doctrines which cannot be questioned or refuted under any
circumstances. If reality conflicts with the existing truths, the result may be death to such
systems because the dominating dogmas are almost incapable of being changed. As
democracy protects individual freedom and allows all citizens to participate in government on
the basis of political equality and the rule of law, the changes that may take place in the
economy or changes that people may demand, can be received and heard. By contrast, in a
totalitarian regime, it is the state that controls every aspect of public and private life and
people are forced to exist within a narrow scope of ideas and ways of living. As globalization
takes place, there is a threat for both democratic societies and authoritarian governments. The
underlying reason is that with globalization comes the transformation of economies, which
may test the stability of democracies as well as ruin the absolute power of totalitarian leaders.
The global economic and financial crisis which saw its nadir in autumn 2008, highlighted
the deficiency of economic and political systems all over the world in different ways. The
problem of the “credit crunch”, which was mostly evident in developed countries such as the
UK or the USA, is the result of people‟s over-confidence and over-spending. The Russian
economy, another example, proved to be inefficient, being based on commodity trade. The
whole economy basically relies on exporting oil, wood, gas, and other resources and does not
possess many advantages in technology or the service sector. Change is imperative.
Globalization as it stands cannot be regarded as being responsible for the inefficiency of the
global economy. However, it is responsible for the ways in which countries develop, and the
ways in which they cooperate with each other and specialize. Furthermore, it can be argued
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U6th Form
Dauntsey’s School
that it was the advanced state of globalization which exacerbated the crisis. The rapid
development of global integration led to the circumstances under which people were failing
to estimate risks and benefits correctly.
It doesn‟t bother you when you buy a laptop that, though it contains the signature “made in
China”, there are details in it that were made in India, Japan, etc. The thing that you do think
about is that possibly you are, as the majority of the world, loyal to well known brands such
as Sony or Mac. This indicates that, with such power as the multinationals possess, the ideas
that dominate the world are those that developed countries impose over the poorer countries.
Being in possession of most of the knowledge circulating worldwide, developed countries on
the whole are in a unique position to control the ideologies and mentalities of global ideas.
Developed countries, through organizations such as the WTO, directly influence the trade
policies of the developing world, which integrate the global system. One of most important
and long-lasting effects of globalization as it stands today is in the realm of ideas that
dominate the world.
Both China and India are great examples of countries being massively transformed by the
process of globalization. The international labour market increased by thousands and
thousands of workers as a result of China and India opening their economies to the world.
This was certainly an advantage to the world economy as it helped to reduce costs of
production and increase output. However, other countries‟ labour markets have suffered from
increased unemployment as their wage rates are higher on average than those of countries
like China and India.
The power of the USA, called the leading country in the world, significantly deteriorated
as a result of the recent financial crisis. Yet multinational companies based in the USA still
wield great power in other countries. The sovereignty of the US as a state is great but its
influence on the global economy and politics started to be a threat to the sovereign power of
other democratic countries all over the world. According to the underlying principle of a
democracy, democracy’s great strength is its capacity to accommodate different political
systems: as long as sovereignty remains with the people*. In other words, when the sovereign
state erodes, democracy erodes. For example, from 1912 to 1932 the USA tried to develop
democracy in Latin America through its intervention. Yet, according to professor Paul W.
Drake, this was contradictory in its essence as the international law defines „intervention‟ as
"dictatorial interference in the affairs of another state for the purpose of altering the condition
of things."** Democracy, therefore, was not achieved there as it has to be developed
internally, within the country itself. Between 1945 and 2004 the USA attempted to build
democracies in 35 countries and only in Colombia did they succeed (after 10 years).
In the modern world though the USA is in favour of international trade, its import tariffs
are criticized as they are used to protect its industries from global competition on foreign
goods and services, such as food and agricultural products. Although it argues for global
environmental protection, the USA refused to support the Kyoto protocol.
The sovereignty of other countries was also challenged by the rise of transnational
corporations as globalization enabled TNCs to reduce costs by exploiting cheap labour. The
overall spread of the so called „American exceptionalism‟ with its underlying idea that
America is different from other countries and that it cannot be judged in the same way,
demonstrated by the fact that the US develops its own nuclear weapons simultaneously
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Aleksandra Tyurina
U6th Form
Dauntsey’s School
trying to prevent the same in other countries, is often seen as duplicitous. Now, its influence
over other countries‟ politics and its economic integration is being tested.
The United States seemed to be the model. Countries seemed to strive to use a similar
model for development. Recent aspects of the world economic situation have shaken the
minds of leading politicians and people in many countries. Many believe it‟s time when
economic system should be altered. For example, the UK toughened its banking policy by
increasing its reserves. Similarly, as in the Great Depression of the 1930s (which interestingly
started in the USA and affected the whole world), the financial crisis has made people and
governments re-examine the ways in which the economy works. At that time some economic
theories were abandoned and other models accepted. Now, it will again take time to re-adjust
the global economy and re-shape ideas in order not to lose what has already been achieved.
Democracies and totalitarian regimes would not react in the same way to the global crisis.
Assuming that the countries with a democratic basis will be more flexible in readjusting their
economies, totalitarian governments may find it almost impossible to reform their economies
in order to cope with one of the worst global financial shock.
After World War II, when Russian soldiers entered Europe, the life they saw there had a
huge impact on them. Living conditions in Russia were almost medieval in comparison with
what they saw in the wealthy West. At that period of time it was quite shocking, as the
country was a closed economy and did not trade or integrate with other economies. The
following years, which received the name of “perestroika” in history, were painful to the
country. The attempts to change the system resulted in extremely scarce goods, civic unrest,
strikes and growing crime rates. The economic and social complaints led to the destruction
of a huge country. Nowadays the Russian economy stands at the beginning of a great
development, though it is questionable how fast it can happen and how far it may go.
The two above examples might partly answer the question posed in the beginning.
Globalization is a huge process touching all aspects of social existence of a country. Though
systems are going to be changed, fear is still there for both democratic governments and
authoritarian states. A good example of a country being able to confront the on-going
changes could be China. The politics of the People‟s Republic of China is unique, as it
manages to combine the characteristics of an authoritarian state with that of a democracy.
The continuing domination of the Communist Party, associated with authoritarian power,
with the Central People‟s Government has created a dual leadership system which has proved
to be effective even during the financial crisis. Rather than trying to maintain the major
companies and financial institutions by increasing government spending, attention was
devoted to consumers, hence forcing businesses to adjust to severe conditions on their own.
The banks were obliged to give credits to households, (though it was very hard for businesses
to borrow) hence inspiring consumption. The result is remarkable: China managed to show
rates of economic growth – it was the only country during the crisis where sales of cars rose.
The expanding Indian economy was also able to grow in the recession. Though the growth
slowed from 9% to 6%, what is remarkable is that it still grew. It is undoubtedly the ongoing
process of global development that helped both countries during such a difficult period.
According to John J. Sweeney, „Our task is not to make societies safe for globalization, but
to make the global system safe for decent societies‟. The underlying assumption is that
ideally, in a globalized economy, all people should have access to whatever goods and
services they wish to buy. Can globalization be sustained in the long run? It can. It is an ongoing process, though, perhaps, currently at a slower rate than during recent years. Turning to
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Aleksandra Tyurina
U6th Form
Dauntsey’s School
the law of diminishing returns, the more we add units of labour, the less extra output we get.
Does it mean that the more integrated countries, the fewer benefits? No, it means that we
should change the methods of approach to globalization. As the world changes and the
countries become increasingly dependent on each other, key economic theories and models
should be adjusted – enlarged and renovated. In the post World War I period, the leaders of
most Western states desperately wanted to cure their own country‟s economies by restricting
international transactions. By different protective devices such as increased tariff rates or
currency devaluation, home industries were supported hoping that employment would
increase. In fact, the „beggar-thy-neighbour‟ policies resulted in retaliation by other
economies that cut the volume of international trade and led to higher unemployment.
Globalization must be sustained as a means of development of the whole world. However,
the form of it should be altered as every economy is unique and the enormous process of
globalization cannot be implemented by different governments in the same way. It should be
adjusted to different countries‟ economic and political situations. Paraphrasing Aristotle,
„One should call the world happy, not by looking at a part of it, but at all the participants’.
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Aleksandra Tyurina
U6th Form
Dauntsey’s School
References:
2, 694 words [not counting the title ]
* Anne Perkins, Little Book of Big Ideas: Politics, p.114-115
** Wikipedia – the Free Encyclopedia: Foreign Policy of the United States
References to websites and sources:
Globalization Quotes, [http://thinkexist.com/quotations/globalization/]
Wikipedia – the Free Encyclopedia; articles on:
 ‘Globalization’ [http://en.wikipedia.org/wiki/Globalization]
 ‘Forms of Government’
[http://en.wikipedia.org/wiki/Form_of_government]
 ‘People’s Republic of China’
[http://en.wikipedia.org/wik i/People's_Republic_of_China]
Houston Institute for Culture, „ Globalization’
[http://www.houstonculture.org/global/index.html]
Aruni Mukherjee, „Perspective: The Real Problem with Globalization’,
published August 20, 2006, [http://www.boloji.com/perspective/198.htm]
Benjamin R. Barber, „Shrunken Sovereign: Consumerism, Globalization and
American Emptiness’, World Affairs Journal: A Journal of Ideas and Debate,
published in spring 2008;
[http://www.worldaffairsjournal.org/2008%20 -%20Spring/full -Barber.html]
Article on „Perestroika‟,
[http://www.ibiblio.org/expo/soviet.exhibit/perest.html]
„Fortune‟ – a global business magazine; p. 6, „ India 3.0’
[Europe Edition, September 7, 2009, №15]
Bibliography:
Barber, William J., A History of Economic Thought
Woolf, Alex, Systems of Government: Democracy
Swift, Richard, The No-Nonsense Guide to Democracy
Dowswell, Paul, Systems of Government: Dictatorship
Anderson, Kym; Blackhurst, Richard, The Greening World Trade Issues
Garlake, Teresa, 21 s t Century Debates: Global Debt – The Impact on Our
Lives
Perkins, Anne, Little Book of Big Ideas: Politics
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