Impact of Globalization on Public policy and Economic Development (Essay Sample)

Impact of Globalization on Public policy and Economic Development
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Abstract
What is globalization and how does it impact public policy and economic development? This paper explores the questions highlighted above by defining the links between these three fields. Millions across the globe today have had their living standards improved and more are headed to share this destiny due to globalization. Therefore, to completely reap from this wave, policy makers must investigate its implications and give suitable and appropriate response. The trends identified by the world future society as having greatest impact on public and private organizations today are also discussed and finally, a prediction on the ones most likely to have greater impact on organizations in 10-20 years time made.
Introduction
Many papers have defined globalization in various ways. There is a debate on its meaning, some say it’s a process, some it’s a general phenomena, some it’s specific, some controllable, some not controllable and to some its compulsory (Azizi, 2011). Gugushvili(2006), defines globalization as diffusion of goods, capital, technology and people across borders. Evidently, from this definition, globalization involves international integration enhanced by advances in information technology, transport and communication. Through history and time, Technological advancements and innovations have shrunk economic distances and governments have pursued supportive economic policies. The next question to be asked therefore would be on impact of globalization on public policy and economic development.
How Does Globalization Shape Public Policy?
Globalization must definitely affect international law together with national and international cross border policies if its definition above is to hold. Azizi(2011), notes that we cannot omit the role of globalization in the area of policy and policy making. He continues to say that policies are interrelated and have an effect on each other. It is common knowledge that traditionally policies have been undertaken within national political systems. Governments have been the ones to protect their citizens rights, provide security and responsible for the economic welfare of their people. With global changes in trends and integration, political activity increasingly takes place at the global level and therefore countries should adopt themselves with these globalization phenomena (Irani& Noruzi, 2011).
Previously our policies were limited to the very limit sphere for example rural areas, cities and nationally as the highest level. One country cannot exist on its on now and must
communicate with another, this requires needs accepting global agenda and therefore policies will change from national to international ones (as cited in Azizi, 20011).
Carney (2008), argues that there are three aspects. First, the sheer scale of process is unprecedented; the relative size of the emerging economies being integrated into the core of the global economy means that their policies matter for advanced economies, as well as their own; and third, the widespread adoption of supply chain management by business further enhances the depth of integration. He further notes that flow of goods, services and capital is now unprecedented. Merchandise exports have increased to comprise 20% of the global GDP from 9% roughly a century ago during the globalization wave.
Given the size of the global market provided by developing countries, their contribution to global policies matter. Carney (2008), states that the economic policies of emerging market countries have improved the welfare of citizens in both the developed markets and the emerging ones, through gains from trade. The emerging markets however have found themselves in risky
situations that have led to debts, domestic inflations, economic distortions, cost adjustment and may end up in hard situations to get out.
Public policies therefore have to be revisited time to time given the ever changing globalization phenomena. Failure to which, negative implications may occur.
Impact of Globalization On Economic Development
The greatest beneficiaries of globalization are big multinational companies whose markets have increased so rapidly. This has led many of the companies to traverse national and international borders, which in turn increases cash flow. A good example is in international trade where trading in manufactured goods has increased by more than 100 times (from 95 million US dollars to 12 trillion US dollars) since 1955(as cited in Azizi, 2011). This is sufficient evidence on how globalization affects economic development all over the planet. Multinational corporations can now manufacture in many countries and sell their goods around the world. Money, technology and raw materials can today move swiftly across national borders. This has been the reviving factor f...