Paradoxes Of Globalisation

Disaffection, animosity, and perhaps fear are the words that some would use to describe their emotions towards the phenomenon known as ‘globalisation’, because they theorize that it has led to: a weakening in the sovereignty of national governments, an increase in unemployment, a loss of cultural diversity, global warfare and disconnectedness (Shiva, 2005). Others argue the complete opposite of the above-mentioned. Globalisation is seen as instrumental in enhancing the power of the nation-states; creating employment, reinforcing cultural differentiation, and promoting global peace and increasing connectedness (Shiva, 2005). These two conflicting theories on the concept of globalisation constitute the “paradoxes of globalisation”. It is imperative

Globalisation is the driving force behind the staggering increase in multinational corporations (MNCs) - the same MNCs which people have deemed responsible for diminishing and undermining the sovereignty of national governments. MNCs create global networks by assimilating national economies, which in turn, cripples the power of the national governments as they no longer have total authority over their economies (Dean, 1998). For example, the top 500 MNCs have authority over one third of the world’s Gross Domestic Product (GDP) and seventy-six percent of world trade. MNCs are greatly feared by national governments as their countries need their business activity in order to sustain their people. The North American Free Trade Agreement (NAFTA) and other trade blocs, weaken the sovereignty of the governments to manage their economies because they encourage countries to deregulate their markets, so that markets can regulate themselves and this essentially means that the government plays a minor role in the economy (Held, 1999). Jessop (2004) describes the reduction of the political power of the state as the “hollowing of the state”. However, some scholars reject this view and hold that national governments are the most dominant entity, which shape their respective economies.

Due to globalisation, organisations, such as the United Nations (UN), have been established in order to promote global governance, peace and to protect human rights (UN, 2014). These aims have been achieved through countries signing peace treaties, and the UN acting as a watchdog to suppress any conflict within, and between, countries. Notably, The UN, with other global entities, assisted in ending Apartheid in South Africa by pleading with its members to stop trading with South Africa (SAHistoryOnline, 2008). In opposition to the above-mentioned results of globalisation, globalisation has led to an increase in conflict between countries and within countries. Since globalisation leads to an increase in the spread of ideologies and economic policies these ideologies and economic policies might not be universally accepted leading to conflicts between the countries propagating the ideas and those rejecting them. For example, Americanization has overlapping connections with globalisation. The American culture has been propagated throughout the world and has transcended many geographical boundaries through social media, MNCs such as McDonald’s and the movement of people and this has led to conflicts between America and the Islam religion (Roy, 2005). America is in engaging in an ideological struggle with