UNIVERZITA KARLOVA V PRAZE

FILOZOFICK FAKULTA

GLOBALIZATION AND ECONOMY

Milo Suboti

June 2012
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Contents
1. Introduction....................................................................3

2. The Term Globalization and Theoretical Approach................3

3. Economical Aspects of Globalization.................................6

4. Conclusion.....................................................................7

5. Sources..........................................................................8

1. Introduction
The goal of this work is to present the role that globalization as a process has on
a national state, with additional attention given to new states, states that are less than
20 years old and are a result of disintegration of a communist state. In most of such
cases, process of democratization was simultaneous with process of creation of new
economical system and new type of market. Instead of planned production, suddenly
competition-based marked appeared.
Of course, while political processes were controlled as strictly as possible,
economy was left to merciless influence of globalization and all the changes in the
world.
Not many subjects in recent history were so explored as globalization. It was
written about from many different angles, by many different people, and that is
understandable it is an interesting subject, full of different conflicts and one that often
evokes passionate discussion. In most cases it is explored interdisciplinary, since it is a
rather complex phenomena and getting the whole picture is not quite easy.
Still, it is possible to determine two main spheres of influence when it comes to
globalization: political sphere and economical sphere.
First, political sphere is of course important since new world order that is marked
by globalization in a certain way limits the power of a state and changes the basis on
which national states are built.
The other, economical aspect of globalization influences lives of people more
directly, since multinational companies and international economical organizations
shape or influence image of world industry. That, as an end result can lead to
weakening of sovereign states.

2. The Term Globalization and Theoretical Approach

Today, many approaches and definitions of the term globalization can be found.
Globalization itself is not a new notion for a while now, and it has a certain history to it.
But, that history is not quite agreed on in todays political theory. Two main approaches
are recognized today.
First approach is the one that is based on historical dimension of globalization
and it consists of opinion that not all the processes that are considered parts of
globalization today are new. Ergo, not all the influences it has on sovereignty of a state
or its role in international relations are new. Some authors even claim that the process
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of globalization started with Christianity and has continued until today. Another opinion
is that what we call globalization today was at the center of analytic works of social
theory in the 19th century those of Comte, Saint-Simon and Marx.
Second approach is opposite. It claims that globalization is a relatively new
process that began in years of the Cold War and that made radical changes in modern
international relations. This process was initiated by the disappearance of the
communist regimes, development of new technologies (internet, cell phones etc.) and
victory of liberal political theory and views on the world.
Still, it is clear that globalization is a multidimensional process that consists of not
only political and economical, but also of social, cultural, technological and other
dimensions.
The subject we are interested in here is not simply international companies and
global industries, but something that transcends pure industrial relations. Globalization
today is a subject that brings changes not only on global level, but also within certain
larger areas, regions, and countries themselves. And it is not only of interest to
structures of political power, but also different non-government organizations, informal
structures, different movements etc.
Of course, globalization has its enemies anti-globalists that use different means
to manifest their opinion. They consider globalization to be not a socially useful process,
and are constantly trying to eliminate its effects.
Still, it is irrelevant for this work whether globalization has more positive or
negative influence, but it is rather important to note one thing at this point it is
undeniable that question of globalization is more and more popular every day.
For most, globalization today is a time of confusion, time in which we are
overflowed with information that cannot be rationally analyzed. Most often, synonyms
such as internationalization or Americanization are used.
Discussion about globalization can be simplified based on three opinions:
neoliberal, radical and reformist.
Neoliberal understanding determines globalization as a process in which it is
necessary to eliminate all state limitations that may interrupt free flow of money, goods
and service.
Traditionalists, understandably, try to highlight negative aspects of globalization
and to stop processes that lead to it.

Reformists advocate different approach. They believe globalization should be

carefully examined as a phenomena and then work on promoting and developing
positive effects and repel the negative ones.
Today, nobody tries to hide concern about the negative effects of globalization,
but there are positive effects of this process that are often forgotten development of
science, industrial development, cultural connections and firmer connections in general.
Despite all that, globalization as a whole helps division among people and injustice
within the world order. It influences the whole world, but every individual as well.
Globalization indisputably represents integration of markets, national states and
economies to a degree that was unimaginable in the past, mostly thanks to modern day
technologies. It is determined by satellite communications, optic fibers and internet.
Friedmann, as a globalization analytic, names a healthy globalization one in
which certain community accepts only those influences of another that fit in naturally
and do not conflict with traditions of receiving environment. It is equally important to
resist influences that are truly foreign to it, and to carefully decide which is which.
In todays politics decisions are first made within governments, but then between
governments and international organizations. This created a framework in which rights
and obligations, as well as authorizations of a state are referred. These allow a state to
continue with work that would otherwise be unimaginable, due to isolation from global
relations and processes.
In new, global society, a new system is born, and in it a state in just one of the
factors of power, but still one with lot of space for action when it comes to economical,
social or ecological policies. Naturally, state tries as hard as possible to maintain
importance as an institution.
Numerous critics of globalization believe in the survival of national states based
on the thesis that the main role of a future democratic state as owner of a territory will
be to regulate its inhabitants and give it legitimacy in international political arena.
If globalization continues to spread its influence to economy, and it probably will,
future number one interest of the world is ecology. Global society, as an alliance of
states cannot effectively create and maintain laws, so it relies on the state to be basic
cell of this new global society.

3. Economical Aspects of Globalization

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In addition to significant changes that globalization has made within political

sphere of a state, economical aspect of changes is rather important. One of the most
influential analysts of the industrial dimension of globalization is Nobel Prize winner,
economist Joseph Stiglitz. He argues that globalization is an extremely controversial
phenomenon, since it has made the feeling of isolation far weaker, but still remains
synonym for catastrophe for many people.
One of the paradoxes of globalization, and a proof for many of its flaws is the fact
that Chinese model of privatization has resulted with single greatest decrease of poverty
in history, while in other parts of the world it caused huge percentage of unemployment.
Famous sociologist Jean Ziegler criticizes leaders of global processes, IMF,
World Bank and WTO, claiming that real use of globalization is in direct conflict with all
those principles on which it was to rely:
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That it is to be of use to everyone, while in reality two hundred of world leading

companies regulate 23% of world trade;
That it was to unite the planet, but in reality it seems planet is more and more
divided;
That it was to result in world peace, while in reality it has been cause for many
new conflicts.

Ziegler further argues that globalization is useful only for limited circle of people
that connect only with those similar to them and are interested only in money and
power.
Despite all this, globalization as a process of free circulation of information,
ideas, merchandise, capital and humans, regardless of state borders, is unstoppable. It
allows great positive possibilities, but its end results depend on the goals of those who
control it. And those are, primarily, great industrial countries.
Goal of current globalization movement is profit trough transnational
corporations. Chances for economically weaker countries to develop still exist, as seen
on example of certain states in Southeast Asia that managed to use globalization to
their best interest. This is, of course, not easy to achieve and requires great a lot of
work and careful planning.
Numerous authors disagree with the idea that free global market will lead to
overall prospering of the entire world. Experience so far supports this doubt. Naturally,
no country should leave its destiny to the uncertainty of the global market and decisions
of international funds. A suggested way for this to be done is domination of resources
over work, and more activism and better organization of civil society. Majority of human
kind holds in its hands the power to build new, more humane society.
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4. Conclusion
Future of globalization, both political and economical, is not certain. Since the
phenomenon began, it has changed and adapted. It is a process that has a role of
taking part of sovereignty from national states. Despite that, national states are still
important factor in processes of economical globalization. This is especially important
when it comes to small state that have just recently ended transition period and have
their only chance in regional integration and creation of alliances with neighbors, so that
they could have an equal saying in some future processes of global integration.

5. Sources

Hrubec, Marek (2011): Od neuznn ke spravedlnosti, nakladatelstv Filosofia

Beck, Urlich (2003.): toje globalizacija? Zablude globalizma - odgovori na

globalizaciju, Biblioteka Novi poredak, Vizura, Zagreb

Fridman, L. Tomas (2003): Lexus i maslina, Izvor, Zagreb
McGrew Anthonv: The Global Transformations Reader, Politiv Press, 1.-46.,

Cambridge
Stani, Mladen (2009): Globalno gospodarstvo i globalizacija, Ekonomski

pregled, 51, 9-10, 918-927, Zagreb

Steiger, B. Manfred (2005): Globalizacija, ahinpai, Sarajevo
Stiglitz, E. Joseph (2004): Globalizacija i dvojbe koje izaziva, Algoritam, Zagreb
Stiglitz, E. Joseph (2006): Marketing Globalization Work, W.W. Nonton &
Company, New York