Essay on “Globalization versus Regionalism” Complete Essay for Class 10, Class 12 and Graduation and other classes.

Globalization versus Regionalism  

World is coming closer today. National barriers are breaking in many areas. Dependence of states on other states is increasing. Communication and technology are moving at a faster pace .That is why we are today in a global village. The trend is more towards interdependent world economy. Globalisation of the world economy is taking place in which countries are opening their economies and integrating into the world economy. Cooperation in economy is increasing among countries which is breaking barriers of nations. But equally significant is the coming up of regional economic blocks which can act as obstacles in the path of globalisation.

Why globalisation has increased in recent years? The trend is towards globalization because protectionist policies did not pay. The world trade declined. The economic activities lessened. Also the command economies of communist blocks and state controlled socialist system failed miserably. They were unable to deliver the goods. The deidealization of international relations in the wake of end of cold war accentuated the globalisastion process. It also had drawn positive response due to its positive features. The countries which have succeeded in minimizing the social costs and maximizing the gains have attained higher growth rates and higher standard of living, while those which failed, like India lagged behind. But when India too joined the globalisation process through its new economic policies started in 1991, the things have improved for the better like foreign direct investment rose along with the portfolio investment, balance of payment situation improved, trade improved. It is also on its path to full convertibility of rupee.

If globalisation has some merits, there is also a price paid for globalization. Now the condition is such that no country can afford to resist globalization. In this process some problems are also emerging. It is evading the independent decision making powers of countries in economic matters. System of economic domination is being exercised by the developed countries on the developing countries. Serious conditionalities are being imposed in terms of child labour, human rights, emotional protection for trade. The driving force of the market economy is the accumulative instinct which is essentially human greed. Many believe that unless some limitation is put on this acquisitive instinct, the world in the coming century will be engaged in conflicts, perhaps military, over sharing global markets.

But the greatest problem facing the globalization process is the emergence of regional economic blocks which is promoting regionalism in economic matters. Europeans union is becoming stronger. EC is one of the biggest and most significant economic bloc in the world. It will have one currency. Other countries will have to trade with this union. EC is a strong economy and they are going to dictate terms in trade. The worst sufferers will be the least developed countries, especially the poor countries from Asia, Africa and Latin America. ASEAN is other regional economic grouping. The efforts are towards improving economic cooperation in the region to focus on trade and new markets and investment destination. They are working on action plan to modernize, computerise their economies for improved economic activities. They are also working towards regional integration. They have already admitted Myanmar, Laos and Vietnam. India has been made full dialogue partner and admitted into ASEAN Regional Forum (ARF). So their policy is for expansion through ‘Look East’ Policy. So globalisation and regional economic groups both are facing challenges from each other. North American Free Trade Association (NAFTA) and SAARC are another economic grouping which are again regional in nature. SAARC is making all efforts towards accelerating the formation of a South Asian Free Trade Area (SAFTA) by 2001. It is also towards removing tariff and trade barriers. Another economic grouping is the Asia-Pacific Economic Cooperation (APEC) for free trade and liberalizing the market and investment. Yet another organization the Indian Ocean Rim Association for Regional Cooperation (IORARC) was formed in 1997. India is also a member to it. This area is very potential for trade and its main objective is to step up regional cooperation and international trade. This grouping was the only left out in the age of globalisation along with other regional economic blocks. This area is very rich in wealth and oil. So the whole attention is going to shift to this area in the coming years for trade and economic cooperation.

The main problem with these regional economic groupings is that there is overlapping of memberships. One country is part of many economic blocks. But this can also serve its interests in a better way by becoming member to other groupings. Regional blocks can be a threat and obstacle to the process of globalisation also by pursuing protectionist policies. Also they might be myopic in their thinking by just thinking for their own region and not beyond those regions. They can be a limiting factor for the promotion of world trade though they preach free trade and market accessibility.

So this simultaneous process of globalisation and regional integration are going on in the world today. Both can supplement each other but the problems are many. The basic aim is economic development but the paths are different. If the attitude of developed countries do not change towards developing countries in terms of aid and assistance and transfer of technology at affordable prices, regional groupings will be formed more in number. But if they become self-centered in their approach and pursue protectionist policies world trade will suffer which will affect all the countries. So the developed countries have greater responsibility to help the poorer countries towards economic development.