The Risks of Globalization

by Noriko Abe

I have studied various effects of globalization in class. I always have a good image of globalization and I often use the advantage of globalization in my policy recommendations. However, I saw many risks brought from globalization in this class. Therefore, I focused on various risks brought from globalization.

First, I raise the advantage of globalization. Globalization promotes economic liberalization. India actually developed their economy because the country changed their economic policy from controlled economy to liberal economy. It is thought that the variation of strategy which companies take has broadened. Also, new information technologies have proliferated. People’s lives have been made more convenient all over the world. More and more people go to foreign countries for business, sightseeing, and other reasons. I think that each human in the world gradually has his mind to try to know humans in other area and country because of globalization.

On the other hand, many experts fear the dangerousness which globalization causes. I pick up the report written by the World Economic Forum (WEF). The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. The World Economic Forum showed the Global Risks 2012 report on January 11th, 2012. The Global Risks reports are showed every year and the reports, which focused on the findings of a survey of 469 experts and industry leaders, outlined top five global risks in terms of likelihood in the next 10 years. This year’ s report says severe income disparity, chronic fiscal imbalances, rising greenhouse gas emission, cyber attacks and water supply crisis from a higher rank. This year’s report shows a shift away from worries about the environment to concerns about a breakdown in society and economies. I think this means that effects of globalization have become more serious from superficial problems. Also, the report believed these risks threaten global growth as they drive nationalism, populism and protectionism at a time when the world remains vulnerable to systemic financial shocks, as well as possible food and water crisis. It is strange that the world, which has originally nationalism, populism and protectionism, do globalization in pursuit of the progress and the result return to nationalism, populism and protectionism.

The usefulness of globalization is large, but we also have to look the measure for the problems which globalization cause. The measure goes to protectionism. We may not change our today’s life, so we have to rethink ourselves in globalization.

Reference

‘Global Risks 2012 – Seventh Edition’, World Economic Forum, <http://www.weforum.org/reports/global-risks-2012-seventh-edition&gt;

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