Undermining the True Spirit of Globalisation

As I discussed the importance of a continuous policy regime at the level of countries today in a previous post, the same reasoning is also applicable to global economy as a whole. In this era of close integration and dependence among countries, countries must extra care not to interrupt the existing progressive policy regimes so as to elbow both investors confidence as well as to strengthen the trust between governments. Each country, in particular, must avoid taking such policies which will erode the confidence of others against whom such policies are directed to safeguard the interest of the former. This sort of shadow-boxing along the policy lines by the member countries of the world especially by powerful forces will undermine the very sprit and purpose of the globalization.

The on-going standoff between US and Russia over the Ukrain issue has to be evaluated with this perspective. There two things here, first, any attempt to address a political crisis with an economic solution is not desirable as a political crisis must be resolved through political means. Second one is the resonance of economic embargo being surgically imposed on Russia across the globe. What message this episode spreads across the world?  Because already international community look at the on-going process of globalization with suspicion about its true intention as they firmly believe that it is old wine in a new bottle. The criticism raised against the current of form of globalization that it is designed and adopted for the comfort of rich also attracts credence. Two things appear to be on the side of the detractors of the globalization; first, globalization has touched only the strengths of the rich like capital and manufacturing whereas the strength of the poor, labor is still unexplored to the detriment of the poor countries. Second, the notion of old wine in a new bottle implying that globalization is the new avatar of the old imperialism also appears plausible in the context of US actions against Russia that a US led globalization to benefit out of its own strength like capital and restricting other to make use of their strengths is so designed to brow beaten and coerce others to fall in line to serve the interests of the US. In other words, US’s attempt to intervene in a political crisis with an economic solution strengthens the suspicion that globalization pursued today is not to make world better off, but to make certain section better off at the cost of others. Thus, this kind of lop-sided and miss-guided policy prescriptions will undermine the true spirit of the globalization and thereby lose an historical opportunity to the world to change its face for the better if it is pursued better.