Globalization: Pros and Corns

Essay by moaxcym May 2008

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Perhaps there exists no such thing as perfection in any idea and any particular idea can not always work under all circumstances and conditions. Such lack of consistency is almost universal of all the ideas and globalization is no different.

1997 brought up some interesting strings of events that provided strong arguments to feel skeptic or uncomfortable about globalization.

East Asian Financial Crisis marks the period of great economic turbulence in Thailand and South Korea which adversely affected the economy of the region. This crisis brought down the value of the respective countries’ currency to a dangerous slide down. South Korea specially had to suffer a lot. It should be kept in mind that the economies of these counties in 80’s and mid 90’s experienced a healthy trend and their GDP growth reached a percentage high of 8-12% growth. The region provided enticing incentives for foreign investors as it promised and maintained a high interest rate.

However the Mexican Paiso crisis triggered a sense of apprehension in foreign investors and ultimately the seemingly invincible economies crumbled. Without even getting into the nitty-gritty of the crisis we can perhaps safely declare it a failure of globalization system.

Similarly the idea of globalization didn’t quite work for the Argentineans. Indeed, Argentina had a history of political instability and there were numerous other reasons for the debacles of their economy but the crisis seriously damaged the credibility of other Latin American countries and consequently the whole region had to suffer. The world had to see the unfortunate events of rioting, looting and anarchy in Argentina in the late 90’s and early 2000. It ought be mentioned that in the early 90’s the Argentinean government resorted to privatization but by the late 90’s the country found itself entangled with debt, poverty and unemployment. The...