The Overselling of Globalization Article Review Paper Example

Globalization is a very crucial concept in the world. Globalization is a term commonly used to refer to the manner in which people, governments and corporations interact and integrate globally (Giddens, 2018). Advances in technology is one of the major aspects that have seen the exponential growth in globalization. People from all over the world have been able to communicate and connect in such a way that the world seems to be a village. The cultural, political, social, and economic interactions among people from different parts of the world has had its impact. However, it seems that the concept of globalization has been oversold, and this overselling has affected the direction it has taken. This paper analyzes an article entitled 'The Overselling of Globalization' which is authored by Joseph Stiglitz. The article was published in 2017 in Business Economics. The article analyzes the aspect of globalization, its impact and what can be done to alleviate the negative effects of overselling the globalization idea. This paper presents a critical assessment of the ideas and concepts that the author looks at in the article.

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The author of the article, 'The Overselling of Globalization' sets out to list the failures associated with globalization and explains how these failures have led to the current political problems being witnessed not only in America but also in other parts of the world. The author puts his point across by discrediting politicians who promise too much with respect to globalization yet too little ends up being achieved. According to this author, there is a big disparity between the promises and what has been delivered. He also accuses economists of misleading the global population thus leading to economic challenges such as the collapse of the banking systems and the plummeting of the exchange rates. The author then lists a number of policies that can help in bringing the global politics and economy back on track.

To advance his argument, Stiglitz has used some concepts that are central to the issue at hand. These concepts are brought out in the form of fundamental questions that the reader must put into consideration. One of these questions is about the knowledge that people have. He asks 'how do we know what we claim to know?' and 'how sure are we about these beliefs?' (Stiglitz, 2017, pp 130). The questions may seem basic but they have a very deep meaning. They are intended to provoke the emotions and thinking of the reader who must ask themselves if what they claim to know is factual or baseless. The author further asks how public servants and intellectuals should convey the various bits of information to the public and whether policies should be sold using false arguments. The author seems to urge the politicians, public servants, economists and others involved in this aspect of globalization to be honest. The big question is then whether it is okay to justify dishonest means of doing things with the end achieved. Should the end justify the means? Stiglitz rebukes the issue of dishonesty that seems to have crept into the minds of policy makers and the political elite. The concepts of factual knowledge and honesty are well defined in the article as the author uses ideas such as knowledge development, belief systems, the Great Recession, and scientific methods to illustrate his points.

The central argument that Siglitz advances in his article is based on trade as related to globalization. According to Stiglitz, trade globalization encompasses all other aspects of globalization. He begins by arguing that economists are not honest in their opinions of the principles of free trade as some of the information they hold is not factual. He gives the example of the 2008 financial crisis in which even strong economies like that of the US were negatively affected. The issue of unemployment, for instance, is a major challenge all over the world and the 2008 crisis made things worse. Stiglitz notes that almost ten years down the line, the US economy has not recovered from the unemployment shock that gripped it during the crisis. Globalization of trade has further worsened the situation since, according to Stiglitz, unemployment rates have gone high due to the mismanagement of globalization. He states that apart from the job losses witnessed in 2008 during the global financial crisis, more imports and fewer exports have has worsened the unemployment crisis. However, politicians, on their part have not been honest. They do not understand that global trade is more about improving the living standards than about offering jobs. According to the author, politicians have often taken advantage of the unemployment situation to rise to power. They promise the electorate that with globalization, there will be the creation of more jobs. This is, of course, what the voters want to hear. The author gives an example of Bill Clinton who rode on the slogan 'jobs' and adds that the same catchphrase played a big role in the 2016 election (Stiglitz, 2017, pp.132). The author argues that instead of promising something that is as unviable as jobs, the politicians ought to explain the aspects that will come with globalization such as the improvement of living standards. Nevertheless, this can only happen if globalization works well. The cost of globalization should also be put into focus.

Stiglitz's arguments can be compared to the wider literature on globalization. Various authors have come up with articles on the impact of globalization. A study conducted by Bran (2015) lists some of the positive effects of globalization as poverty alleviation, technological improvement and opening of foreign trade. The poverty alleviation issue is in line with Stiglitz argument that globalization brings about an improvement in living standards. Another study by Blanton and Peksen (2017) found out that although globalization increases the prospects of employment, the right to safe workplaces is often compromised due to governance challenges (pp. 1493). Stiglitz already claims that the focus should be on living standards rather than jobs although he admits that globalization comes with job creation. He, however, points out that the jobs that come with globalization are risky and not well-paying, particularly, if they are based on imports.

Stiglitz focuses on the benefits and cost of globalization. He claims that with an overestimation of the benefits of globalization, globalization advocates seem to have underestimated the cost. According to Stiglitz, although globalization leads to an increased GDP if well managed, it is associated with several risks. This idea is echoed by Gilpin (2018) who argues that despite the benefits of globalization, its risks cannot be overlooked because small nations and corporations risk domination by the big companies and developed nations and may find themselves relying on them. This reliance may result in political manipulation and consequent oblivion. On his part, Stiglitz argues that both individuals and firms face various risks as a result of globalization. The author gives the example of Germany that relies on Russia for natural gas and Mexico that relies on the US for the same commodity. The big risk is that there is no insurance for these and the risks are both economic and political. According to Stiglitz, should any of the suppliers cut off the supply, each of the dependent countries would be at risk of job losses and acute shortage of the commodity.

Additionally, there is the challenge of imperfect competition due to globalization. Stiglitz argues that the advocates of globalization failed to consider that economies are dynamic. The big economies are bound to suffer. According to Garbie (2016), developed countries are forced to reduce their prices due to competition from countries such as China that are able to sell their goods at a cheap price since there is the availability of cheap labor. This makes the prices fluctuate to the disadvantage of big economies. The pricing fluctuations spills over to what Stiglitz refers to as the comparative advantage. Apart from the ability to price items in the liberal global market, there is the aspect of production which is quite dynamic. The author gives an example of the long-term impact of shifting manufacturing to China due to the availability of cheap labor there. After shifting the manufacturing of thermos bottles, for instance, America stopped producing them. The author then argues that in a few years, it will be untenable to bring the manufacturing back to America due to the lack of technology and expertise. Therefore, it is important for globalization advocates to consider the impact of moving production processes to other countries in a bid to promote globalization.

Generally, Stiglitz argues that globalization has been oversold and politicians as well as policy makers have joined in the promotion of the concept without critically looking into the implications for the future economies. However, he claims that de-globalization is not the solution to the challenges that have come with globalization. The argument here is that if well managed, it is possible to achieve a global economy in which every person benefits. Some of the suggestions Stiglitz gives that can make globalization beneficial include an improvement in the market income equality, social insurance, a reduction of the intergenerational transmission of disadvantages and advantages, and helping the various economies adjust to innovative realities among others. With such views and suggestions, Stiglitz's article provides crucial information that enhances the available knowledge on the topic of globalization. It helps the reader understand that globalization is not a solution to human problems but a challenge in itself and a concept that requires proper management.

The author, Stiglitz, uses a very clear way of expression. He communicates his arguments very clearly and convincingly. The use of practical examples makes the concepts and arguments even more concrete. It makes the reader visualize the aspect of globalization, its benefits, cost, and what needs to be done for it to be beneficial to all and sustainable. The only issue that I find inappropriate is the use of the first person narrative voice. When the author uses this voice, the article looks subjective and it is likely to make the reader feel as if the information Stiglitz is giving is rather personal comprising skewed opinions. It seems like his personal opinions and not facts. The references used are also rather few thus provoking the reader to wonder if they should believe him. Nevertheless, the use of concrete examples makes the information in the article authentic.

Conclusion

In conclusion, Stilgtz has brought out various aspects of globalization. He has explained that it is not yet time to celebrate the concept of globalization. The aspects he has given are an eye opener, especially to the advocates of globalization, most of whom are the politicians and policy makers. The article sets out to highlight the over-promotion of globalization which has brought about some impractical promises that cannot be sustained. He seems to warn economists and politicians who are too optimistic that they do not want to tell the citizens the truth about globalization. They often tell them what they want to hear. Challenges such as unemployment, shifting of manufacturing, fluctuations of product prices and financial crises are some of the issues that globalization has brought. The author asserts that the mismanagement of globalization is what has brought these challenges. He, however claims that there is an opportunity for changes that can make globalization beneficial to all. He uses the first person narrative voice, especially as he begins the article, probably as a way of making...