The increasing cross border trade of commodities and services, the flow of international capital and the rapid spread of technologies in many world economies has led to economic globalization. The modern world has been characterized by the mutual integration of market frontiers and economic development. Deviant globalization has also become widespread in the modern world as a result of the advancement in technology that has made it possible for deviant entrepreneurs to easily carry out their business activities. This essay analyzes the various manifestations of deviant globalization in the modern world.
Globalization is the economic unification of the world’s economies and its various commercial and financial markets as a result of the dynamics of the world market. The act of globalization evolved when human beings descended from one region to another region of the world in search of food, water, and to discover the world. Globalization has been a gradual process that has taken many years before reaching at the point that it is in the present times. In this way, civilizations, culture, languages, knowledge, and skills were also transformed as a result of the movement of people from one place to another in the search of some basic necessities. With respect to business, historically, when the business of many firms grew substantially in domestic markets, they strived to extend their outreach in overseas markets. Many business people in ancient times strived to improve their business to different regions across the world so as to generate more profits unlike being locked in one place. Before the 1stcentury BC, Indian merchants traded and exchanged spices and other goods with Roman Empire and Babylon and other regions that had and required commodities that were traded by the Indian merchants. In this way, trade across borders took place and thus leading to the expansion of the areas in which traders could move their goods and commodities. The chief mode of transport was vessels carried in oceans that were mostly propelled by seasonal winds. People of different countries started communicating and socializing with each others as a result of mutual agreements and trade activities that brought them together. Education, health, infrastructure, industries, trade, media and so forth, these all the sectors kept advancing in terms of modern technology and wide spread knowledge. People around the globe became more aware of the natural phenomenon and developments around the planet. People from small or poor countries to big or rich countries enjoyed the opportunities to obtain the highest level of education. Inventions in healthcare enlarged human life and cushioned against many detrimental and even fatal diseases. Simultaneous development in all spheres of life took people out of dark ages. With the advent of television, freedom of media, and later on internet compressed the world into a small village (Qureshi, Ahmed, and Amanat 109).
Globalization requires that states see themselves as belonging to an integrated economy and perhaps be seen as the opposite situation to the idea of localization or regionalization involving, for example, local producers and small markets selling to consumers who live in the same area. The fast economic globalization is based on the advancement of technology which has led to increased cross border division of labor. The cross border division of labor has increased with the advancement of technology which has reduced the cost of transport and communication thus making economic globalization easier. New technologies have stimulated the development of trade and investments in different countries. Multinational corporations have become the main carriers of economic development for the reason that they are globally organizing production on the modern world.
The international flow of finances from one place to another has also increased over the last few years thus having a great impact on the economy of the world. The two major things that have led to economic globalization in the modern world are the reduced cost of transportation that has made it possible for commodities to be easily moved from one place to another without many barriers. Reduced policy barriers as a result of the world free market has also helped in the promotion of economic globalization. The advancement in technology that has characterized the modern world is one of the driving forces of economic globalization. The advancement in technology has help to reduce the cost of transportation and communication and thus making it easier for people to travel and easily communicate. Few years back, entrepreneurs have been saving costs as a result of the reduced costs of transportation due to improved infrastructure. Shipping costs have been reduced thus making it easier for multinational corporations to move commodities from one place to another. The air transport revenue per passenger has reduced in the recent years and thus promoting economic globalization. The most revolution breakthrough in the transport and communication sector has happened and thus making it easier for things that could not be done before the 19th century to be easily executed.
The world took giant steps back from economic globalization in the 1940s as a result of the Second World War, the monetary instability and economic regression that characterized the world at that time. The world that emerged in 1945 after the Second World War was more fragmented that the world that was in 1914 before the beginning of the First World War. Based on exports and imports of the US, it took more than twenty five years after the Second World War before the United States of America reached the same level of globalization that it had experienced on the eve of the Second World War.
Deviant economic globalization is simply the global flow of “repugnant” goods and services like trafficking of drugs and human beings, illegal wildlife movement and many other illegal things in the modern society. The increasing deviant globalization in the modern world is as a result of the intersection of ethical difference and inefficiencies of law enforcement agencies. Deviant entrepreneurs are popping up as a result of disagreements what is right as well as the connection to the global market so as to meet the demands that cannot be fulfilled. Deviant globalization has a great impact on the future global economy for three reasons that are interconnected. Encouraging deviant entrepreneurs to enter or exit a given line of business in the contemporary society, for instance, requires understanding the local economic, legal and political conditions and, just as important, how these local conditions form part of a global system that create arbitrage opportunities for deviant entrepreneurs to exploit. The exploitation of opportunities by some entrepreneurs who do not adhere to certain ethical and legal standards creates a deviant business environment. Understanding the local opportunity structure facing these entrepreneurs creates policy levers for changing those structures, whether through investment in improved local law enforcement. This can also be solved by improved scrutiny of the supply chain so as to increase the cost of transportation of the good or service from its low cost point of origin to its destination. The enhancement of legitimate local economic opportunities is also vital because it reduces the attractions of the illicit business.
The current model of economic globalization came into existence in the early 1980s which was sparked by the beginning of the third world debt crisis. The international financial institutions stepped in to buy the bad debt from commercial banks. At the time, poor countries found themselves in hard economic times because of the crisis that had affected the world market. Poor countries found it difficult to make payments on external loans because of the financial crisis that characterized the modern world. Economic globalization is a major thing which can have great impacts in the economy of the world. Economic globalization is something that cannot prevented because it occurs in a natural way as a result of the changing dynamics of the world market.
Deviant globalization is manifested in various way in the contemporary society, for instance, the illicit flows, black markets, and trafficking in drugs and human bodies that are as much a part of the new world disorder. Deviant globalization has been made possible as a result of the existence of multinational corporations that have resulted to instant financial transfers from one state to another. Financial technologies have made it infinitely easier to move money around the world and do business with partners on the far side of the earth without many barriers unlike when the traditional methods were used. In addition, these three broad technological transformations have been accompanied by a set of legal-political transformations that have also facilitated the global flow of goods, services, and people. This has led to the relaxation of trade barriers and the ending of the closed communist bloc whereby countries can easily trade with one another without much restrictions. While these technologies have drawn the world into ever-closer physical and economic connection, they have not eliminated local differences in economic opportunities, in moral attitudes toward different sorts of economic activity or in the probity or capacity of law enforcement agencies in different parts of the world. Unscrupulous traders have taken advantage of the advancement in technology to engage in illicit trade activities that is negatively affecting the world economy. Deviant entrepreneurs like drug trafficker have taken advantage of the modern technology to easily carry out their illegal business. Analysts who look at deviant globalization as merely a negative externality of licit globalization typically struggle to see how it is embedded in host societies in socially and politically meaningful ways.
Encouraging deviant entrepreneurs to enter or exit a given line of business is a task which requires the understanding of different factors in a given area. This requires understanding the local economic, legal and political conditions of an areas and how they can affect a particular types of business that can be started in that area. It crucial to know how these local conditions form part of a global system that create arbitrage opportunities for deviant entrepreneurs to exploit and to misuse the local resources of a particular area. Understanding the local opportunity structure facing these entrepreneurs creates policy levers for changing those structures, whether through investment in improved local law enforcement which may help in the reduction of the scope for arbitrage, improved scrutiny of the supply chain so as to increase the cost of transportation of the good or service from its low-cost point of origin to its destination. This can also be achieved through the enhancement of legitimate local economic opportunities so as to reduce the attractions of the illicit business in a particular area.
The modernist promise of complete, inclusive, efficient, equitable nation-building has failed in the recent years for many reasons. Deviant entrepreneur’s backfill some of the functionality that modernist states used to promise and usually failed to deliver as a result of the illegitimate means that they employ in delivering their goods and services. They may be tasked with providing services such as health-care, education, infrastructure, social insurance, security, justice which they may fail to deliver or do shoddy work that is below standards that have be set. Needless to say, state incumbents find this highly threatening, even if they have no one but themselves to blame because of the sub-standards work that may be done by some deviant entrepreneurs. Some deviant entrepreneurs deliver these political services in a partial, exclusive, inequitable and often inefficient way that fail to meet the minimum standards that have been put in place by state actors. Indeed, some of them even pretend to try to be complete, inclusive, or equitable work but the work fails to meet the standards that have been set. Some deviant entrepreneurs are delivering services to clients, not benefits to citizens but to benefit themselves.
The one place that the hypocrisy still flourishes is among western policy analysts, who continue to measure and discuss these countries according to a series of metrics and morals based on a long-discredited vision of what the nation-state could and should be.
Many people especially in the civil society look at globalization as an assault on their native languages and values that they cherish. For instance, the English language has become the language that is used in most parts of the world whereas Chinese fats foods are being used in most parts of the world. Globalization and trade and the international level do not take place with altogether fair trade but it involves trade practices that are unfair. Some of this unfair trade practices as a result of deviant globalization include smuggling, illicit imports, infringement of intellectual property rights, for instance trademarks among many other illegal things that have characterized the modern world. The wave of globalization is hard to stop for the reason that there is fast growth in global marketplace, global customers and consumers, global culture, global media, and global community. People of the world are coming closer through this and are integrating in all aspects of development. With the advent of the internet, the distances among countries have been dramatically shrunk. People in different parts of the world easily communicate by the use of different social media platforms which has been necessitated by the advancement in technology. Indeed globalization is the product or result of corporate globalization. When large companies extended their businesses beyond borders, they wished to have a trade or other barriers’ free global market.
The negative aspects of globalization include: developing countries have been facing the problem of assault of cheap imports by developed countries while the developed countries think the opposite. Cheap products which are dumped in developing countries from developed countries negative affect the economies of these countries. This is because the products are loved by people who are in developing countries because they are cheap compared to the local products. The love of foreign products by people who are in developing countries help in the promotion of foreign industries thus leading to the collapse of local industries. The collapse of local industries in developing countries has a negative effect on the economy of these developing and under-developed countries. The rise of ‘regionalism,’ which exhibits deviation from multilateral trade under globalization, since the champions of globalization were themselves focused toward regionalism. It led to the notions of internationalization to regionalization, and to globalization which has had a negative effect to the economies of the developing countries. The waves of globalization tend to be unstoppable in the modern society as a result of the dynamics of the modern global market. Globalization has some merits of socio-economic integration for the sake of enhancing free and fair trade, investment, finances, inflows of human resources, and easy mobility of people around the world but it also has demerits which include exploitation of the poor and under-developed to developing countries and emergence of global criminal economy. Globalization has made it easier for criminals to transact their businesses with easy in different countries of the world. The new technologies that have been brought by globalization have led to the emergence of criminal groups who take advantage of technology to defeat the traditional system of law enforcement. The transnational criminal gangs who are engaged in sell of contraband, counterfeit, sub-standard, and grey market products also employ the same channels of supply chain that global companies and businesses do. This has made it difficult for law enforcement agencies to easily disrupt their business activities because of the modern technological tools that they used in their business activities. Even then, there are incidences of prosperity and development through globalization and trade liberalization among many countries in the world. They are gradually tapping the underlying opportunities in the era of globalization so as to maximize their profits thus improve the economy. But this is not the case with all the countries in the world because those developing countries are negatively affected by cheap products from developed countries that are dumped in their markets. Globalization, trade liberalization, and international regulations are also perceived as global dominance of powerful elite class and corporate global dominance. Multinational corporations that move their commodities from one place to another take advantage of the free market that has been brought by the globalization of the world economy. World has witnessed emergence of many intercontinental companies that dominate the world and tend to be bigger and stronger than many individual states. The forces of world trade organization and affiliated entities advocating globalization have been preparing and enforcing stern legitimate conditions like standardization and certification for quality and safety assurance. These practices pertain to technical barriers to trade with the purpose to limit the role of majority of developing countries to export of cheap primary goods and cheap labor supplier only as compared to the developed countries.
Qureshi, Jawed Ahmed, and Amanat Ali Jalbani. “The Puzzle of Mainstream and Deviant Globalization.” IBA Business Review 9.2 (2014): 106-118. Business Source Complete. Web. 5 Dec. 2016.