OPINION Vol.1, No.1 June 2013 - National Defence University

GLOBALIZATION – OPPORTUNITIES AND CHALLENGES FOR PAKISTAN
Introduction
Mankind is in a constant process of evolution. Through the ages, world-order has changed from
one form to the other. While the Industrial age was still a veritable phenomenon, mankind was exposed
to yet another revolutionary change which was a by-product of industrialization, i.e. globalization.
Globalization is the integration of the world's economies, cultures, people, goods, knowledge, services
and infrastructures, through transnational investments and rapid proliferation of communication. It
connects individuals, communities, businesses and governments around the world through business of
influential Multinational Corporations (MNCs). Jet airplanes, cheap telephone services, computers,
internets, shipping and rapid capital flows have made the world more interdependent and interconnected,
virtually transforming the world into a global village. The phenomenon of globalization has created a
dichotomy in perceptions dividing the world in to a plethora of apprehensions and appreciations due to
challenges and opportunities it offers. With the advent of globalization, a sense of euphoria prevailed
since its proponents professed that the misery to human life had come to an end since globalization was
about shared prosperity. Its critics however argue that the vision of shared fortune of reduced violence
and equality amongst nations appears to be a far-cry and that human misery has actually increased. It
then leaves us with the question as to whether the concept has been applied in a misconstrued manner or
this was another ploy of the wealthy and powerful to thrive on the resources of the under-developed
countries – a question not yet answered.
The region that we are in has peculiar socio-economic and security dynamics. There is immense
trade potential at the regional and global level which can turn the fortune of South Asian countries.
Pakistan sits at the confluence of East and West, which gives it a unique opportunity to act as a trade link
between many countries. But broadly speaking, the two largest countries of South Asia have a legacy of
animosity and mistrust which precludes any bold economic initiative by either side. These are the
challenges which Pakistan is facing today and which must be met with realistic approach to reap the
benefits of globalization. Therefore, there is a need to analyze the phenomenon of globalization and its
implications for Pakistan with a view to suggesting measures to address the challenges and exploit the
opportunities.
Phenomenon of Globalization – A Holistic View
The term “globalization” has been defined by many informed scholars, groups and organizations.
Merriam Webster defines it as, “Development of an increasingly integrated global economy marked by
free trade, free flow of capital and the tapping of cheaper foreign labour markets.” 1 IMF refers to
globalization as, “The growing economic interdependence of countries worldwide through the increasing
volume and variety of cross-border transactions in goods and services and of international capital flows,
and also through more rapid and widespread diffusion of technology.” 2
Evolution of Globalization
For thousands of years people have been trading goods and travelling across great distances. The
overland Silk Road that connected Asia, Africa and Europe is a good example of the transformative
power of international exchange. Philosophies, religions, language, arts and other aspects of culture
spread and mixed, as nations exchanged products and ideas. In the 15 th and 16 th centuries, Europeans
made important discoveries in their exploration of the World Oceans.
The great German statesman of 19 th century Chancellor Otto Von Bismarck once said “If there is
to be revolution, it is better that we should make it rather than to be its victims” 3 .The Islamic golden age
added another stage of globalization, when Jewish and Muslim traders and explorers established trade
routes, resulting in globalization of agriculture, trade, knowledge and technology. The advent of the
Mongol Empire, also facilitated travel along the Silk Road. The modern age of globalization started with
the Industrial Revolution at the end of the 18 th century. In the Early 19 th century, the development of new
forms of transportation and telecommunications that compressed time and space, allowed for
increasingly rapid rates of global interchange. In the 20 th century, road and air links made transportation
faster, and the advent of electronic communications connected billions of people, setting a stage for IT
revolution in 21 st Century. 4
After the Second World War the victorious nations during Bretton Woods Conference agreed to
collectively manage the world economy through control of effective international institutions. This led to
OPINION Vol.1 No.1 66 June 2013