Before the 19th century, humans traveled long distances and sought numerous solutions to communicate, obtain raw materials, and exchange goods. However, technological advancements have paved the way for global integration due to more efficient communication, enhanced industrial capacity, and faster transport of goods and services. Regardless, some individuals propose that the increased international connectedness benefits some individuals while harming others. Particularly, binding treaties championed by INGOs and other international organizations have played a major role in social and economic developments in regions worldwide. Thus, it is necessary to focus on limiting the negative implications of globalization, including imperialism and political influences to focus on its benefits such as improved investments in developing states and access to raw materials.
Justification and Criticism of Globalization in International Trade and Finance
International trade has existed for centuries since no nation is self-sufficient. Subsequently, the increased demand for goods and materials found in various parts of the globe pioneered globalization as more people ventured into foreign markets to satisfy their needs. Globalization refers to the growing interconnectedness and interdependence of global economies, populations, and world cultures due to more cross-border exchanges of goods, information, and services (Smith, 2018). After the Second World War, the US in collaboration with other powerful nations in Europe established an order governed by mutually agreed principles and supervised by multilateral institutions. Since then, globalization has played a major role in facilitating the success of US ambitions by allowing collaboration toward the peaceful resolution of conflicts, free trade, and adherence to the rule of law.
Globalization has connected global markets, increased awareness of business opportunities, and enhanced communication between major state players and officials responsible for making critical development decisions. Globalization expedites business prospects because it allows investors to compare investment opportunities and study markets half away from the globe (Verbeke et al., 2018). For example, a business institution in Europe can assess the viability of its investments in developing countries and decide whether or not to expand. Investors in the US are currently partnering with USAID and State Departments to finance and improve their investments overseas. Therefore, these possibilities provide unlimited opportunities to reap more profits and leverage international markets to enhance economic stability.
Globalization has resulted in the formation of bilateral trade treaties and trading blocks that have significantly increased the living standards of individuals in involved states. The US engages in trade with various nations, including China, Canada, and Mexico, thus improving its relations with these nations and fortifying their interdependence. In addition, globalization has contributed to the establishment of trading blocs such as the European Union and the Economic Community of West African States (ECOWAS), allowing countries to easily access raw materials, obtain processed goods from other nations, and enhance their production more efficiently (Smith, 2018). These institutions facilitate cooperation in areas such as infrastructural development, providing job opportunities, and stabilizing market prices. Therefore, they facilitate the continuous advancement of developed and developing nations, hence overseeing sustainability.
Although globalization promises various opportunities, critics argue that international trade and interboundary businesses harm indigenous populations while assigning powers to multilateral corporations. Transnational companies are known to exploit local tribes and their families to satisfy their interests. Additionally, they contribute to resource depletion in these areas without addressing the critical needs of occupants (Walter, 2021). For example, large palm oil companies occasionally grab land that belongs to natives with government support. As a result, they overlook the welfare of individuals residing in the areas and facilitate suffering instead of improved livelihoods. Moreover, companies’ ability to obtain raw materials from foreign markets has resulted in massive deforestation and a lack of adherence to environmental standards (Smith, 2018). Hence, the ineffective regulation of these organizations poses threat to human lives.
Additionally, globalization has facilitated the increased dependence of developing nations on developed and more powerful nations that design initiatives for their benefit. For example, some countries promise to champion numerous developments in others while taking advantage of them by incurring large debts. In addition, others promise developments but instead obtain raw materials for their companies overseas, only to sell processed items to these countries (Walter, 2021). Therefore, the current design of international trade and business does not prioritize equality. Instead, more powerful countries deprive less developed countries of their resources and assist them at a cost. Moreover, globalization allows international players to engage in cross-border crimes through powerful criminal syndicates that terrorize individuals and governments (Smith, 2018). Hence, globalization exhibits some detrimental factors due to ineffective international frameworks.
International Economic Development as a Component of Globalization
International economic development is a process through which nations work together and support each other to improve state economies and the lives of the world’s population through the reduction of poverty and elimination of injustices and discrimination. More powerful governments collaborate with less developed nations to enhance their economies, improve infrastructure, education, and healthcare, and maintain peace (Zeibote et al., 2019). International bodies such as the United Nations (UN) are tasked with maintaining world peace, sustaining good relations between nations, improving people’s living standards, and ensuring adherence to human rights principles. International development can easily achieve good results as well as have some negative impacts on the countries involved.
International economic development has facilitated the eradication of communicable diseases and offered effective solutions to illnesses that impact the human population worldwide. Most areas in underdeveloped countries lack basic health care services which bring about challenges in the management and control of diseases such as HIV and AIDs, cancer, malaria, polio, cholera, and other common ailments (Navarro, 2020). Cooperation and collaboration between developed and developing countries allow for more investment in research and governments’ dedication to dealing with these comorbidities, hence minimizing their implications and reducing mortality rates. For example, international governments were successful in managing the spread of the Corona Virus pandemic due to enhanced communication between medical practitioners, occasional reporting, and research (Farzanegan et al., 2021). Moreover, individuals’ adherence to guidelines provided by the World Health Organization was effective in minimizing the spread. Thus, initiatives supported by international developments play a major role in dealing with humanitarian issues and avoiding negative outcomes.
International economic development has helped establish peace and political stability between states that collaborate in business initiatives. Multilateral trade agreements and interboundary businesses have facilitated good relations between countries due to increased interactions. As a result, these prospects contribute to peace and stability between neighboring countries and others. In addition, state investments in other nations prevent the escalation of issues into conflict as both countries stand to lose (Zeibote et al., 2019). As a result, international economic developments encourage political stability as nations prioritize peaceful discussions. For example, the US and China are locked in trade wars with destructive implications for their economies. However, the two nations are heavily invested in each other and occasionally collaborate in global initiatives with the assistance of international organizations like the UN, hence limiting potential conflict between them (Smith, 2018). Thus, international economic development is a driving force for global peace and stability.
Global economic developments are perceived as a modern form of colonization because they propagate imperialism and allow developed countries to have more control over the social and economic development of weaker states. International economic development is highly criticized for assigning more power to developed countries because it does not adhere to the tenets of democracy. Most developing states give away their political rights and people’s social freedoms for the promise of improved living standards (Adams et al., 2019). However, international organizations hardly meet their end of the bargain, resulting in suffering instead of promised developments. For example, the United States is criticized for its involvement in nations like Libya as it contributed to the funding and arming of Islamist militias against Gaddafi, resulting in the loss of thousands of innocent lives. Hence, global economic development paves way for imperialism, which harms weaker nations.
The frameworks governing international economic development systems are ineffective because they allow corruption and the misuse of state funds by selfish individuals. Corruption is rampant in several developing countries, thus limiting citizens from enjoying the benefits of international cooperation and funding (Smith, 2018). Leaders with ill intentions govern countries with poor democratic principles because of insufficient systems to ensure proper management of funds and use of finances set aside for development. Political leaders in most developing countries face corruption charges and criminal allegations but still manage to hold on to their power (Walter, 2021). As a result, individuals in these countries suffer from aggravated atrocities and are unable to access basic needs. Therefore, corruption and misuse of finances are destructive to world economies and impose suffering on individuals since they facilitate scarcity and diminished opportunities.
Biblical Perspective
The Bible informs economic thinking by advising Christians on how to make wise investment choices and reap the rewards that God has planned for them. Therefore, it calls for increased international collaboration and economic development to help individuals offset potential crises. According to Juergensmeyer (2019), economics in Christianity is about making informed choices according to Biblical principles to explore numerous opportunities. The Bible reminds Christians that they are stewards of God and should oversee their initiatives within a larger perspective of what he has planned for the human race. Ecclesiastes 11:1-4 offers valuable pieces of advice on how Christians should approach economics and international trade. The verses suggest that people should invest their wealth in foreign trade for they never know where their luck lies (English Standard Version Bible, 2001). Additionally, Ecclesiastes proposes that individuals should spread their investments because they do not know when bad luck will strike. Moreover, it contends that human beings should always take advantage of opportunities because they cannot harvest without planting. Thus, humanitarian developments and global economic integration are not dependent on human ideas but adhere to God’s principles and his plan for human beings as stated in the Bible.
Conclusion
Globalization has revolutionized the world order due to enhanced communication and information sharing. Subsequently, it has facilitated regional integration and global humanitarian developments that have benefited several states. However, critics of globalization and the involvement in international organizations suggest that the system is designed to benefit powerful states. Additionally, they propose that imperialists take advantage of their superior position to rob weaker nations. However, international business cooperation and humanitarian developments have opened up business opportunities that facilitate infrastructural developments and improved healthcare, peace, and stability. Moreover, the Bible advocates for cooperation between individuals and sharing resources. Therefore, human beings should adhere to high moral standards to obtain the most benefits from international integration and humanitarian developments.
References
Adams, D., Adams, K., Ullah, S., & Ullah, F. (2019). Globalization, governance, accountability and the natural resource ‘curse’: Implications for socio-economic growth of oil-rich developing countries. Resources Policy, 61, 128-140. Web.
English Standard Version Bible. (2001). ESV Online. Web.
Farzanegan, M. R., Feizi, M., & Gholipour, H. F. (2021). Globalization and the outbreak of COVID-19: An empirical analysis. Journal of Risk and Financial Management, 14(3), 105. Web.
Juergensmeyer, M. (2019). Religious nationalism in a global world. Religions, 10(2), 97. Web.
Navarro, V. (2020). Health and equity in the world in the era of” globalization”. In The Political Economy of Social Inequalities (pp. 109-119). Routledge.
Smith, K. E. I. (2018). What Is Globalization? In Sociology of Globalization (pp. 3-10). Routledge.
Verbeke, A., Coeurderoy, R., & Matt, T. (2018). The future of international business research on corporate globalization that never was. Journal of International Business Studies, 49(9), 1101-1112. Web.
Walter, S. (2021). The backlash against globalization. Annual Review of Political Science, 24(1), 421-442. Web.
Zeibote, Z., Volkova, T., & Todorov, K. (2019). The impact of globalization on regional development and competitiveness: cases of selected regions. Insights into Regional Development, 1(1), 33-47. Web.