Given the relatively broad aspects of globalization, this essay will cover those directly and indirectly related to the economy but at the same time trying not to lose sight of the interconnected whole. The definition of globalization below will be the benchmark of this work as there is no officially accepted definition of it. The Term globalization first appeared in the 60’s to refer to the increasing movement of people, goods, services and information across borders thanks to the advance in technology and international relations as well as to the willingness of both people to consume differently and companies to sell in different markets (Steger, 2002). For more than four decades this movement grew at an unprecedented speed.
Today, however, most languages around the world are adding another new term to their dictionaries: deglobalization. Everywhere on the planet both popular and academic literature use it (the word speaks for itself) as what it appears to be the opposite of globalization. As reported by the International Monetary Fund the world economy growth is at its lowest level for 60 years (Munoz, 2009). Questions such as terrorism, inequality, climate change and other environmental problems as well as the fear of losing national control are some of the main increasing concerns of stakeholders concerning the globalisation process, to say nothing of the current financial crisis that made governments around the globe rethink the way they regulate their markets.
Global capitalism is indeed under fire. The UN Conference on Trade and Development has reported that FDI (Foreign Direct Investment) flowing in, dropped by 21 % in 2008, and as The World Association of Investment Promotion Agencies says: it is expected to continue this decrease
in 2009 reaching between 12 and 15 per cent of contraction by the end of the year (Munoz, 2009). Nevertheless, It is not difficult to notice that further globalization is inevitable if the effects of the current global recession are not taken into consideration. The forces driving it are far too powerful given the advanced level it has reached. As stated by Gurría (2006) on behalf of the Organization for Economic Cooperation and Development (OECD): the trade stake contributing to worldwide GDP has been multiplied by three since the 50’s thanks to the acceleration in globalization. The amount of FDI outflows from developed countries is now four times higher than in 1950, which has enabled the transfer of technology to developing countries. Moreover, other benefits of globalization are also highly visible; it has helped to move millions of people out of poverty. For years, the economy of under developed nations has been climbing whereas developed ones have had to put up with little growth. Further analysis of the forces and the challenges of globalization show how the former prevail over the latter.
Although it is arguable that terrorism as a cause is more of an ideological aspect, its effects also represent a threat to the economic side of globalization. In the Autumn of 2001 the terrorist attacks on the twin towers in Manhattan slowed not only the American economy but also all those economies from numerous other countries having commercial relations with the United States. Over 3,000 innocent people perished in less than two hours. However, when deconstructing Al Qaeda and more precisely ...