Essay: Globalization Been a Force

Pages: 8 (2490 words)  ·  Bibliography Sources: 15  ·  Level: Master's  ·  Topic: Economics  ·  Buy This Paper

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[. . .] Economic globalization makes the acquisition of "communication media, arms, capital, skills, and information" [Lizardo 2006] to non-state actors that much easier. This availability of material and coordination resources helps to equalize the international playing field between non-state actors and nation states. The relationship between terrorist organizations and transnational criminal groups is one good example of this concept. Makarenko (2002) writes, "the state as the central focus of international affairs has given way to a host of non-state actors; and, it has become increasingly evident that the greatest threat to security emanates from the rapidly evolving phenomena of terrorism and transnational organized crime (TOC)" [Makarenko 2002]. Globalization after the cold war has played a key role in bringing both sides of the spectrum together. After the end of the cold war, there was a decline in state-sponsored terrorism, opening of territorial borders, a surplus of weapons, and the expansion of the marketplace to global status [Makarenko 2002].

Despite the positive aspects to globalization, integrating markets, creating new ones, helping to diminish poverty, and spreading democracy, globalization has presented the world with new problems. As previously mentioned, globalization undermines the sovereignty of nation-states through the expansion of information, technology, finance and manufacturing. This is especially true in weak states in Africa, South Asia, and Latin America. These weak states that are unable to maintain a healthy economy must adhere to regulations set forth to them by international financial organizations. Following these regulations create new markets that these governments cannot properly monitor or control, leading to the creation of parallel economies where new forms of making legal and illegal money suddenly become attainable [Makarenko 2002]. Makarenko (2002) writes how these parallel economies are created from the implementation of liberal economic policies followed by international organizations such as the IMF and World Bank, which as a result force these periphery states to privatize and deregulate their economies. These economic programs have led to increased levels of unemployment and greater income disparities, ideal conditions for criminal organizations and terrorism.

Naturally as the world order evolves through globalization, so do criminal enterprises and terrorist organizations. These organizations have incorporated new skills and characteristics to capitalize on the new world order. They are increasingly capable of crossing national borders with ease, involving themselves in legal and illegal ventures, developing an uncanny ability to recognize new business ventures, and most importantly a growing capability to manage risks [Makarenko 2002]. Risk management, Makarenko (2002) argues, is one of the primary factors that have changed the organizational structures of these non-state actors. By seeking new allies in the post-cold war era, criminal and terrorist organizations have learned from each other. Criminal organizations incorporate the cell-structure and network emulating traditional terrorist groups and terrorists use criminal activities (such as drug trafficking, smuggling, and money-laundering) to fund their operations. Bergsen and Lizardo (2004) even mention the transformation of terrorist organizations, remarking on their shift to a more network form. Newer terrorist organizations have shifted away from professionally trained terrorists with a hierarchical structure to a more loose-based form without a clear nucleus. Globalization provides an economic infrastructure that criminals and terrorists both can exploit, such as Islamic banks, offshore accounts, and state-shell economics [Napoleoni 2003].

Conclusion

Globalization provided a method for developing countries to rapidly industrialize and subsequently advance their respective nation. Economic policies geared towards globalization such as import-substitution industrialization and export oriented policies assisted in exponentially expanding developing countries economy. These triumphs are seen in South Korea, China, and most recently Brazil. However, globalization does create problems such as the creation and empowerment of new non-state actors such as TNCs and criminal organizations. TNCs in particular are motivated by profit not enhancing the goals of their state creating conflicts of interest. Criminal organizations subvert national sovereignty and elude capture by operating across the globe and now in conjunction with other organizations. In weaker states it undermines the central government as seen now in Mexico's war against the drug cartels. This makes globalization a positive force only for advanced industrial nations and select developing countries. The rest of the world grows dependent on the major countries driving globalization.

Bibliography

Bank for International Settlements. Foreign direct investment in the financial sector - experiences in Asia, central and eastern Europe and Latin America, 2004. Retrieved 12 December at http://www.bis.org/publ/cgfs25.pdf, 1-25.

Bergsen, Albert J., and Omar Lizardo. 2004. "International Terrorism and the World System." Sociological Theory 22: 38-52.

Cumings, Bruce. 2005. Korea's Place in the Sun: A Modern History. New York: W.W. Norton & Company.

Evans, Peter. "The Eclipse of the State? Reflection on Stateness in an Era of Globalization," World Politics, 50 (October 1997): 62-82.

Gereffi, Gary.Rethinking Development Theory: Insights from East Asia and Latin America. Sociological Forum, Vol. 4, No. 4, Special Issue: Comparative National Development: Theory and Facts for the 1990s (Dec., 1989), pp. 505-533. Springer

Gilpin, R. 1986. U.S. Power and the Multinational Corporation- The Political Economy of Foreign Direct Investment. New York: Basica Books, Inc., Publishers

Hewitt, Tom, Johnson, Hazel, Wield, Dave. 1992. Industrialization and Development. Oxford: Oxford University Press in association with The Open University, 1992

Kiely, R. 1998. Industrialisation and development, chapter 5: Specific conditions of late industrialization

Leslie Sklair, L. & Robbins, P. Global Capitalism and Major Corporations from the Third World. Third World Quarterly, Taylor & Francis, Ltd.Vol. 23, No. 1 (Feb., 2002), pp. 81-100

Lizardo, Omar. 2006. "The Effect of Economic and Cultural Globalization on Anti-U.S. Transnational Terrorism 1971-2000." Journal of World-Systems Research XII: 149-186.

Makarenko, Tamara. 2002. "Terrorism and Transnational Organised Crime: the emerging nexus." Working paper. University of St. Andrews, United Kingdom: Centre for the Study of Terrorism and Political Violence.

Napoleoni, Loretta: Terror Inc. -- Tracing the Money Behind Global Terror. London: Penguin 2003. Pp. 195-210 and 251-291.

Ohmae, Kenichi. 1990. The End of the Nation State, New York: HarperCollins, 1995. Princeton, NJ: Princeton University Press.

Scruton, Roger. 2002. The West and the Rest; Globalization and… [END OF PREVIEW]

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