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Globalization

Globalization is a process of integration and interaction among the people, governments and business entities of different nations. Many see globalization as an economic phenomenon. The process is driven by international trade, investment and capital flows. But it has effects on the environment, culture, political systems, economic development and prosperity, and physical well-being of the societies around the world.

Societies across the globe have established progressively closer contacts over many centuries. Earliest forms of globalization existed during Mongol Empire which is an interconnected trade routes(Silk Road) extends over 5000 miles on land and sea and connects China, ancient Egypt, Mesopotamia, Persia, India and Rome. Global integration continued through expansion of European trade in 16th and 17th centuries when Portuguese and Spanish empires reached to all corners of the world. Globalization becomes a business phenomenon when first multinational company, Dutch East India Company, founded in 17th century in Netherlands. It was the first company in the world to issue shares, an important driver of globalization. 19th century saw rapid growth in international trade and investment between European imperial powers and their colonies. After World War II, regional and multinational trade agreements like GATT, WTO, and NAFTA were signed to reduce tariffs and barriers to trade.

Advances in communication and transportation technology combined with free market ideology have given goods, services and capital unprecedented mobility. Developed countries want to open world market to their goods and take advantage of cheap labor in poor countries. They use international financial institutions and regional trade agreements to force poor countries to integrate to the world economy by reducing tariffs, privatizing state enterprises and relaxing environmental and labor standards.

The world is increasingly confronted with problems like cross-boundary water pollution, degradation of natural environment, regulation of outer-space, global warming, international terrorist network, and global trade. These problems can not be solved by individual nation states acting alone. This necessitates cooperation between nations and creation of global institutions.

The world is more interdependent than ever. Along with products and finances, ideas and cultures circulates more freely. Worldwide drive toward a globalized economic system dominated by multinational corporate trade and banking institutions that are not accountable to democratic process or national government. This has benefited multinational corporations in the western world at the expense of local enterprises, local cultures and common people. For billions of the world's people, business driven globalization means uprooting old ways of life and threatening livelihoods and cultures. It should be resisted or regulated in order to promote more democratic process and sustainable development.

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