Tuesday, July 10, 2018

Globalization seems similar to colonialism.

At the World Economic Forum in 2017 Xi Jinping talked about "growing material advances in science and technology" which have resulted in unprecedented development but, on the other hand, there are "frequent regional conflicts, global challenges like terrorism and refugees, as well as poverty, unemployment, and a widening income gap". Xi then asked, "What has gone wrong?" For people with bad intentions technology has made it easy to game the system and cheat others. China has been providing underhand subsidies to its companies, robbing intellectual property and creating barriers against foreign businesses for years, wrote C Block. A 36 page report from the White House Office of Trade and Manufacturing Policy lists the ways China cheats on trade. There are huge markets across Pakistan selling counterfeit western products made in China. "The best thing about these goods is that our middle-class people can now afford to live in style," said shopkeeper Noshad Sheikh. "(Shopkeepers selling these goods have) brought international brands within the reach of local customers who, otherwise, would see those brands only in movies and on television shows. Of course, I am talking about copies and not the original products." When you cheat others suffer. The Industrial Revolution in the 18th century was due to technology. But, "Some workers toiled 12-14 hours per day, yet inequality surged." "But Europe rose to the occasion," and enacted "new labour laws and regulations" which resulted in "economic development and human welfare". Prof Basu conveniently forgets colonialism by European countries, allowing them to rule over 80% of the world and loot its resources. Basu is annoyed about "political polarization, rising nationalism, and a toxic blame game", especially by Donald Trump. "What such behaviour fails to take into account is that globalization is, fundamentally, a natural phenomenon." If so, why is there so much anger against globalization, especially in the West. Perhaps because globalization creates inequality across nations. Thus trade deficit with China has cost 2 million job losses in the US. In the 18th century, inequality was within national borders and hence much easier to remedy with laws and redistribution. China is definitely stealing technology secrets by forcing foreign companies to hand over their research advances, wrote R Sharma. Globalization may have helped poorer countries initially but if some do not play fair then others will lose in the long run. Just as the British claim to have benefited India by conquering it so supporters of globalization see only positives. The strong will always oppress the weak. Goblalization is no different.

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