Effects of Globalisation

Positive effects of globalisation

As previously stated, globalisation has resulted in benefits for the world. Read on to discover more information about these benefits.

Effects of globalisation on society

Globalisation has allowed for economic growth, poverty reduction and general development for some countries. It has been estimated that the proportion of people living in extreme poverty in the developing world has declined. There has also been the creation of jobs for unskilled labour in developing nations, which has allowed them to elevate themselves. Economic growth also results in governments putting greater investments into infrastructure and also increases the quality and availability of public services.

People are able to more easily move around the world due to advancements in technology and thereby utilise their skills in other countries. There has also been the sharing of technology between nations with helps with advancements, particularly in the developing world. In addition, the movement of people increases cultural diversity in nations and makes us more tolerant and open about other cultures. Furthermore, globalisation has caused the emergence of new social movements. This includes groups dedicated to environmental conservation and women's rights, as well as a host of other causes. These movements are global in their scope.

Effects of globalisation on politics

In a globalised world, decisions that are taken are done so to the benefit of the wider global population. In addition, the availability of information makes political-type decisions more transparent. Globalisation also ensures that smaller developing countries can unite and work together for their better good. Furthermore, increased interdependency encourages there to be peace and can reduce the risk of invasions. Moreover, the rise of technology and the internet has given the oppressed a voice so that people around the globe know what's happening and can lobby for changes.

Negative effects of globalisation

While globalisation can have many positive effects, there are also negative effects associated with globalisation. Let's take a look at them.

Effects of globalisation on society

While there have been many societal benefits of globalisation, there have also been negative impacts. Empirical data has shown that globalisation has exacerbated global inequalities, thereby making the rich become richer, and the poor become poorer. In practice, this has meant a concentration of global wealth and power into the hands of the wealthier nations. There has been the creation of long-term winners and losers generally, with the developed world being the winners and the developing world the losers.

As cultures become more integrated, there is a loss of cultural identity often caused by the imposition of "western ideals" on other nations. The increasing importance of English as the dominant language in which global business is conducted has also resulted in the decreasing use of certain languages, which could ultimately lead to their extinction. The provision of cheap, skilled labour in the developing world puts a lot of persons in the developed world at risk of losing their jobs due to labour outsourcing. Moreover, the need for increased production has resulted in the exploitation of people in sweatshops as well as the use of child labour.

Effects of globalisation on politics

On the negative side, globalisation has resulted in a reduction in the sovereignty of nations as they have to heed some internationally made decisions. In addition, it limits states' intervention in aspects such as trade and forces them to follow certain fiscal policies which may not be totally beneficial in order to maintain competitiveness and investments in a globalised world. Furthermore, globalisation has been said to promote the non-democratic functioning of multilateral organisations in that bigger countries usually control decision-making to the detriment of the smaller ones.

Globalisation has also led to a rise in corruption and tax evasion in many parts of the world.

Negative effects of globalisation on the environment

Some of the most significant negative impacts of globalisation have been what the process has done to the environment. In the following sections, we shall examine some of these effects.

Increased greenhouse gas (GHG) emissions

Globalisation has resulted in the increased consumption of non-renewable energy sources, which in turn has increased GHG emissions. Goods are currently travelling to further places, causing an increase in fuel consumption and, thereby, GHG emissions for that travel. In fact, the International Transport Forum has predicted that carbon dioxide emissions from transportation will increase by 16% by the year 2050 (compared to 2015 levels)². In addition, the increased demand for products has caused an increase in the number of factories which burn fossil fuels to produce these products, which also increases GHG emissions. Increased GHG results in global warming and, ultimately, climate change.

Invasive species

Increased transport of goods has caused non-local species to go to new locations in shipping containers. Once they get into the ecosystem of the new place, they become invasive species as there will be no predators to control their population. This can cause an imbalance in the ecosystem of the new environment.

Fig. 2 - Japanese knotweed is a major invasive plant in the UK which can suppress the growth of other plants.

Habitat destruction

The clearing of land for the building of bridges and roads for transportation as well as to accommodate more agricultural and industrial production to meet growing global demand due to globalisation has contributed to the global loss of many habitats. In addition, the increase in the number of ships at sea has increased the number of oil spills, which degrade marine habitats.

Deforestation

Closely related to habitat destruction is deforestation. More and more tracts of forests are being removed to meet increasing global needs. These areas are cleared for logging and for activities such as cattle farming, to name a few. Deforestation has many widespread environmental implications, including but not limited to contributing to global warming, increased flooding and increased land degradation.

Policies to reduce negative effects of globalisation

The following is a non-exhaustive list of policies that can be adopted by governments to reduce the negative impacts of globalisation.

1. Countries should invest in better education and training for workers to adapt to globalisation and the advance of technology.
2. Investments in new technologies can not only lower costs but also reduce greenhouse gas emissions- e.g. investments in solar or geothermal technology to provide energy.
3. Developed nations can establish emergency funds for workers who have lost their jobs because of outsourcing as a result of globalisation. An example is the EU's European Globalisation Adjustment Fund.
4. Implement and enforce strong anti-corruption policies which seek to not only reduce corruption but also find and prosecute offenders.
5. Develop and implement policies that protect human rights through trade. This can be done by banning the importation and/or exportation of products that violate human rights. The EU, for example, prohibits the import of products manufactured using child labour.

Fig. 3 - ball imported into the Netherlands from China labelled as not using child labour