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

Globalization and Poverty Alleviation. Growth of economy stimulated by globalization,
benefits poor in better housing, food, education, welfare services and job opportunities. 29
Globalization and Off-shore Outsourcing. Incorporation of low-pay countries into global
work force has given rise to new techniques of organizing production and trade. Outsourcing,
leads to macro and micro-economic benefits, to the firms as well as to consumers and linked
economies. 30
Benefits of Globally Networked Production. Due to enhancement of expertise, capabilities
and demand, the old model of vertically integrated and centralized production has transformed
into sub-contracting operations through a “build-to-order supply chain strategy”. 31
Expanding Global Middle Class. The growth of the global middle class, as a result of
globalization has influenced global distribution of income and spending power. 70 million people
have been globally entering this group annually; to be increased to approximately 2 billion by
2030. 32
Silent Revolution: A New Trend of MNCs. Existence and power of MNCs producing
affordable, attractive, and world class products and services is on constant rise world over. 33
Other Benefits. Some of other benefits of Globalization are shrinking distances,
interconnectivity and global awareness.
Drawbacks of Globalization
Asymmetric Benefits of Globalization. Evidence indicates that benefits of globalization are
mostly asymmetric; owners of MNCs and capital market disproportionately get the fruit at the
expense of the economies providing the workforce. 34
Widening Gap between Haves and Have-Nots. Poor are mostly affected disproportionately as
a consequence of globalization-driven crises, while they do not get equitable share during
globalization driven upsurges; thus widening the gap between haves and have-nots. 35
Exorbitant Economic Powers and Influence of MNCs and IFIs. Due to exorbitant economic
powers and influence, MNCs gains disproportionate percentage of global wealth. IFIs, do not
really comprehend “what grass-roots economic development is really about and generally remain
in a state of institutional denial”. 36
Increasing Materialism. Expansion of MNCs and glitters of foreign products are giving rise to
materialism in the developing countries. Luxuries are being turned into necessities. Credit and
loans are promoting culture of living beyond means. 37
Globalization and Cultural Identity. Globalization also threatens diverse cultural identities.
Some consider it as a new way of sustaining Western domination of global society; 38 causing
cultural conflict, giving birth to extremist tendencies and threatening core values.
Brain Drain. Foreign market economies are attracting talented youth of poor and developing
countries with attractive pay packages and benefits, resulting in ‘Brain Drain’ of educated and
professional elites. 39
International Security and Nation-State
Common Premises – Neo-Realism and Neo-Liberalism Theories in Contemporary World. The
Neo-Liberals believe that the future lies in globalization; however, Realists assert that it undermines the
sovereignty of nation-states and is the continuation of the colonial policies under a new name and
different outlook. However, on the other hand both also share common analytical premises, on six focal
areas, characterizing the current geo-politics:- 40
The Nature and Consequences of Anarchy. Although both do not deny that the international
system is anarchical to a degree but the difference of opinion lies in its interpretation and the
effects. 41
International Cooperation. Both agree that international cooperation is possible; however,
"difference lies in ease of agreement and probability of happening.” 42
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