It is now difficult to read a newspaper or a book, watch the television, surf the Internet, or participate in a demonstration without coming across references to how 'globalization' is affecting our lives. One of the crucial challenges facing many developing and transitional economies is balancing the benefits of globalisation with the risks and costs. According to Sheila L (2004) : 'Globalization can be described as a process by which the people of the world are unified into a single society. This process is a combination of economic, technological, sociocultural and political forces'Globalisation is a complex phenomenon, with economic, political and cultural dimensions. At the centre are economic pressures stemming from trade liberalization and increased international competition driven by technological change and growth of the knowledge economy. But political globalisation as reflected in regional groupings, American power, and the influence of global institutions such as the OECD and the IMF may also compromise the self-determination of individual countries. According to Giddens (2001) there are also powerful influences that stem from a cultural globalisation of ideas and values. Thus the process of globalization results in the dissemination and transfusion of ideas that attain significant global social policy currency. Individual countries can both contribute to and be influenced by this process .
Effect of globalization:Globalization has variety of effects, that are influencing almost every aspect of life, existence, as well as economic, industrial, financial, social area. Increase of globalization can be seen on Table1. In most of the countries given in example, that measure doubled or, as in case of Czech Republic, even tripled.
Table1: Macro trade indicators- showing globalization. Trade to GDP ratio (total trade)Time19851990199520002001200220032006CountryAustralia26,5431,5839,0945,0543,5244,8746,5651,71Canada48,6354,7670,2485,480,5779,3778,5682,44Czech Republic..58,3389,1129,77141,86144,25149,83186,81Finland43,1545,4259,0876,8976,0676,8275,887,58France32,1536,643,0656,2356,556,8156,1861,54Germany38,6144,3348,8466,468,1169,1471,9489,3Iceland67,4762,4462,7274,6170,6371,173,4484,45Japan14,5815,6817,1120,5219,7820,5821,6625,75Poland..25,5140,760,6759,0260,3164,8278,47United Kingdom36,6840,9146,6657,8358,6859,2458,7168,01United States13,2816,4420,4126,3425,1324,9825,0828,7Source : http://stats.oecd.org/wbos/default.aspx?DatasetCode=SNA_TABLE11Basing on Wikipedia division, I would like to highlight economic effect of globalization, that seen in sociological context, increased economic inequality throughout the world and within the United States. Globalization since 1980 has also raised the inequality between nations and peoples, and cemented the polarization of the world into rich and poor nations. Increased competition that induces changes in production in an economy will lead to better allocation of resources, greater efficiency and productivity. However, even if there is net benefit from globalization for the whole economy, some groups and sectors will lose. The net benefits are not shared equally amongst the population and globalization can increase inequities to the extent that certain groups, sectors or regions, are able to participate and grow much faster than other groups, sectors or regions within a country. Therefore, whilst the benefits of globalization are generally accepted, the jury is still out on assessing the social impact arising from globalization and more importantly how to best manage the risks and costs in order to maximize the net benefit for all concerned.
Impact of globalization on social policiesNowadays all countries are exposed to economic pressures from globalization that has had implications for social policy. Chart 1 show how Social Globalization has developed over time - measured by the average of the individual country indices.
References: Edwards, R. 2000. Globalisation and Pedagogy : Space, Place and Identity. London, UK: RoutledgeFalmer,Giddens, A. 2001. Introduction in The Global Third Way Debate, Cambridge.
Hill M., 2006. Social Policy in the Modern World, Blackwell PublishingJackson A. Globalization and progressive social policySheila L. Croucher. 2004. Globalization and Belonging: The Politics of Identity in a Changing World. Rowman & Littlefield. p.10http://en.wikipedia.org/wiki/Globalizationhttp://globalization.kof.ethz.ch/static/pdf/press_release_2008_en.pdfhttp://www.imf.org/external/pubs/ft/wp/2007/wp07169.pdfhttp://stats.oecd.org/wbos/default.aspx?DatasetCode=SNA_TABLE11http://www.imf.org/external/pubs/ft/wp/2007/wp07169.pdf
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