Globalization is a hot topic of debate these days, and many sides can be seen. Two figures have emerged as experts in the debate. One, Thomas L. Friedman, has written several books addressing the issue, with his most recent being The World Is Flat. In it, he proposes that the playing field has leveled on a worldwide plane and countries are now more competitive with each other, hence the “flat” in the title of his book. However, he also addresses many of the negative issues associated with globalization, as can be seen throughout chapter ten of The World is Flat, The Virgin of Guadalupe. Joseph E. Stiglitz, on the other hand, points out the many inequalities that have emerged, such as the rich getting richer while the poor becoming poorer, as globalization continues. They both propose interesting points of view. They agree on some areas while disagreeing on others, but most significantly agree that the world is globalizing and will continue to do so. The important thing is that we realize this, and try to avoid the negative consequences of globalization.
Friedman argues that the world is flat. This means that distances between countries, such as China and the U.S., have grown much smaller due to advances in communication technologies and the increasing trade that is taking place between countries on a global basis. Thus we have become more interconnected and interdependent upon each other. This is a good thing, he proposes, and more opportunities have been created, the not so powerful have gained power, and once poverty stricken nations have developed into international players.
Chapter ten of his book, however, points out some of the major problems of globalization. He titles this chapter after one of the principles of it: the Virgin of Guadalupe. This is Mexico’s patron saint. It is an important historical and ideological figure to the people of Mexico. Because of the Virgin’s importance to the people of Mexico, many Mexicans have little statuettes of this saint. Thus it can be said that there exists a market for the representations of the figure that is so strong that almost every household owns at least one, which would lead one to believe that it is quite the industry in Mexico. The problem with globalization, however, is that Mexico, a country known for its low wage manufacturing sector, is importing statuettes of its own patron saint from China because they can be made in China and shipped to Mexico at a lower price than for what they can be made in Mexico. So, even though Mexico faces a great opportunity with globalization, like being able to compete with American companies, it now has to worry about places that can out do it, like China.
This particular chapter acknowledges the fact that while the world is flattening, countries must undertake certain policies in order to adapt and not get left behind. One is reformation. First, a country must be honest with itself and identify its strengths and weaknesses. It must focus on its strengths and improve its weaknesses. From there, it must focus on improving things like infrastructure and education, and reforming the government so that it can adapt to a flat world. Some countries are getting left behind in the dust. This makes perfect sense, because these countries do not have the things just mentioned. For instance, a business can be started in only two days in Australia, but the same process can take up to 215 days in one particular African country. Obviously, in a world where Australia and the mentioned African country are competing with each other, Australia will thrive. Equally important with reformation is constant reformation. Just because a country changes policies, and the new ones work for a while, does not mean that they do not need to change these policies again. The world is constantly changing, therefor the requirements to advance as a society and improve the standard of living in a country will also continue to change. Countries that recognize this and are open to change will thrive.
Stiglitz tends to focus on the imperfections of globalization. He feels that the world is not flattening, but rather huge inequalities are emerging making the world as “flat” as the Andes. He feels impoverished nations become worse and are put in even less of a position to compete. Institutions such as the International Monetary Fund and the World Bank, designed to help bailout countries that are failing and improve development, are failing themselves. One of the major problems is that these institutions are not made of people that need their help. They are made up of rich people that cannot understand the problems of the poor, and these rich people are from outside cultures, inevitably causing them to fail. Meanwhile, these rich people keep getting richer.
Both of these men agree on at least one thing: globalization is a trend that is here to stay. There is nothing that can be done to stop it, so we should not try. Instead, we should focus on how we can embrace globalization. The nice thing about globalization is that there are opportunities present that were never there before. Take China for instance. This country was once struggling with new trends, but has emerged as a powerhouse that everyone is watching. This is because it was able to act and compete globally. There are plenty of examples of countries like this. However, there are also examples of countries that are failing. These countries that are failing are the ones opposed to globalization and free markets. Because the world is flattening, the only way not to get stranded is to become more competitive. This means changing culture to embrace outside influence, for this is how fresh ideas are made and traditional ways that slow business are ousted.
My personal opinion is that globalization is a wonderful thing. In America, we are definitely exposed to this first hand, as we are the melting pot of the world. One of the reasons we have thrived over the years and continue to do so is because we are welcoming of others. When two cultures collide, they mix together and great ideas are turned into even better ones. This is one of Friedman’s key points in chapter ten. Another great thing about it is the variety of things we are exposed to. I have been to other countries, where everyday for lunch they eat soup, a piece of meat, and some rice. Here, I have the option to eat Indian curried chicken, a spicy burrito from Mexico, an American hamburger, or Chinese food. I could not imagine eating hamburgers everyday.
I also recognize that globalization is here to stay. America has been one of the leading players, but I fear that will drop off, as our debt rises and we are reversing the trend of being so open because of terrorism. This will cause us great harm if we close our doors. For instance, the proposed wall dividing the U.S. from Mexico is the worst idea I’ve ever heard. Just look at the Berlin wall in Germany. A waste of time, energy, and money. If anything, we should further open our border to Mexico to become more competitive.
One of the most controversial aspects of globalization is outsourcing. Politicians have latched on to this to provoke emotions of pride and patriotism, angering people about jobs being lost overseas. However, if our jobs are being lost to places like Mexico, China, and India how come our unemployment rate has not risen, our economy continues to grow, and we still enjoy a high quality of life? This is because with every low skill, low paying job we have lost, we have created another equal, if not better job. This is another point Friedman points out. Quality of life can only improve if countries focus on creating better jobs, or economic development. It will surely do the opposite if these countries focus on the negative and do nothing to improve. Creating better education systems is one way to do this. This is precisely why Mexico has lagged behind China in recent years. They have not invested enough in their own human capital. China, meanwhile, is educating their workforce so that they will eventually compete with the U.S.
In conclusion, globalization is a good thing. The world is flattening, but because of this every country must be careful and constantly reform if it wishes to be competitive and improve the quality of its life for its people. This is in the hands of politicians. Globalization has proven to be a great thing for places like China, whose people have been growing out of poverty at a fast rate. It has been a horrible thing for places like Africa, where corruption and exploitation by outside forces are ruining the lives of millions. This difference, though, is the willingness of the Chinese to change and the reluctance to change Africa has. Education is key, and every country should put this at the top of their priorities. A country with a well educated workforce will be creative and innovative and know how to adapt. People that proclaim globalization is evil are wrong and wasting time. As a society, we must embrace globalization and constantly seek to adapt to it.
