Challenges with Globalization: An olde fairy tale of the new world order we must brace for

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News: Current phase of digital technology-enabled globalization has disturbed the fabric of human society and sovereign states.

Signs of globalization in the past

Human beings have travelled to distant places to survive, trade, and communicate. Harappan seals dating back to 3000 BCE found in Mesopotamia indicate trade and contacts between ancient civilizations. The number Zero, algebra, gunpowder, religions spread around the world like wildfire.

How has globalization impacted nation-states at present?

MNC’s began the wave by selling dreams and their products. As they expanded beyond boundaries, Non-profit organizations followed suit, enabled by advances in telecom and communication.

This was famously described by Jessica Mathews in her 1997 article, Power Shift. She suggested that these networks were inverting traditional nation-state borders, which were established by the 1645 Peace of Westphalia.

Anne-Marie Slaughter added to Mathews “new-medievalist” world order that instead of being a weakened State was being transformed into a new trans-governmental order. Here the governments across the world were connected and working together on fields like banking, antitrust environment or justice.

Also read: Globalization is not ending, it’s changing:
What were the challenges associated with globalization?

Stieglitz highlighted the issue that MNC’s were impacting the local business like street vendors.

Some opined that these networks also supported the rise of transnational terror networks.

This also created a generation of ‘Baby Zoomers’ (new ‘generation’ of babies) driven by social media, e-commerce and AI.

Virtual transnational networks have increased inequalities, particularly during pandemics. Those with access to technology and capital have enjoyed growth and employment. Others have been left behind.

Also read: New Globalization would yield mixed results for India

This shows that the view of Yuvan Harari’s reality of two worlds, one of the people with technology and capital and another of unskilled and unemployed workers, seems to be coming true.

Source: This post is based on the article “An olde fairy tale of the new world order we must brace for” published in Livemint on 13th December 2021.

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