Such increases are primarily enabled by the reduction of space and time as critical barriers to interaction because of the falling cost and increased ease of transportation and communication (building on Wolf, 2005; Yergin and Stanislaw, 2008). One has only to consider the harmful effects of piracy, the drug trade, human trafficking, corruption and money laundering on the societies of developing, emerging and developed economies alike (e.g. Globalization: Promoting Stability and Prosperity Essay; Globalization: Promoting Stability and Prosperity Essay. the Global Commission on Drug Policy, 2011). Since the 1980s, European integration has been accompanied in several countries by transfers of competences from the state to the regions. Concerns in this area are legitimate, but they should be addressed with policies which are targeted at specific market failures rather than with outright protectionism. 1 We understand globalisation as the acceleration of processes of political, social and economic change due to increases in international interdependencies and international access to goods, services, markets, people and ideas. Some applications of this framework to the European Union suggest that EU involvement may be overextended in some areas and too limited in others. As researchers, our goal has been objectivity and the [2] It was built in the post-war period on the promise of lasting peace and security and democracy on our continent. the tilting of the composition of flows towards less volatile types including equity, thereby reducing the likelihood of sudden stops. Finally, globalisation cannot be enduring if it does not become more equitable. In addition to this traditional role of the state, governments also need to ensure that the gains from trade are shared within societies. 38(PA), pages 449-460. In addition, it appears that import competition interacts with deregulation (in the sense of removing red tape) via which it tends to boost productivity growth. STABILITY AND SUSTAINABILITY: MEANINGS AND APPROACHES 1. [32]See “Financial integration in Europe”, an annual publication of the European Central Bank. But recent academic analysis and policy experience, both globally and at euro area level, have revealed that capital flows can pose risks. It should be observed that no nation could enjoy peace, stability and sustainable development when other nations are deprived of same. Judt, T 2010 Ill Fares the Land (New York: Penguin). [1] These figures suggest that a too inward-looking appraisal of the European project 25 years after Maastricht would fail to draw the full lessons from the project. While, as I mentioned earlier, the quality of financial flows has been so far deficient, the capital markets union has the potential to bring about a more resilient form of financial integration based on more cross-border equity holdings rather than short-term debt.[33]. Globalization refers to the unsustainable, accelerated integration, at the global level, of economic growth, environmental problems, human development, cultural dynamics and political engagements. Learn more about how we use cookies, We are always working to improve this website for our users. Second, a large single market with a single competition authority has significant leverage over multinational firms, allowing Europe to protect what it deems important. Globalisation with a Twist: Stability, Volatility and Fragility All in One. [30]See the ECB’s Convergence Reports for a review of progress made by non-euro area Member States towards meeting the criteria for euro area membership. [3]See e.g. [27]See http://www.oecd.org/ctp/beps-explanatory-statement-2015.pdf. See Coelli F., A. Moxnes, K. H. Ulltveit-Moe (2016). Reducing harmful tax practices is therefore a vital element of the European approach towards integration. The evidence for positive growth effects of FDI in the literature is much more robust than for portfolio flows. The master’s in Globalisation & Development Studies is a social science programme that focuses on how the dynamics of globalisation affect developing areas. Trade openness is computed as the sum of exports and imports over GDP; financial openness is measured as total foreign assets over GDP. Stephen DeAngelis. There are about 40 such countries (ca. A second critical risk of globalisation from a conflict and fragility perspective is that it has enabled dominant economic and political ideas to be more intrusively ‘imposed’ on societies dependent on external support by powerful players with global reach but without either adequate fit or adequate consent. Modern communication technology, financial liberalisation and easier travel have greatly facilitated the instantaneous dissemination of its ideas and enabled a real-time dialogue between leaders and followers. DOI: http://doi.org/10.5334/sta.ag, Trzeciak-Duval A and van Veen E, ‘Globalisation with a Twist: Stability, Volatility and Fragility All in One’ (2012) 1 Stability: International Journal of Security and Development 80 DOI: http://doi.org/10.5334/sta.ag, Trzeciak-Duval, Alexandra, and Erwin van Veen. At the same time, the Stability and Growth Pact leaves space for Member States to determine both the composition of government expenditures and revenues and their size relative to the economy and thus to choose from a variety of social models based on democratic deliberation. Such standards have become important ingredients in free trade agreements and contribute considerably to the political legitimacy of globalisation. This means that the European model caters for what I mentioned before: although Member States need to respect common rules, sovereigns keep control of their tax and benefit systems, reflecting different conceptions of, and preferences for, social protection and the size of the welfare state. While some may feel that these funds improve their lives still too little, such schemes – along with the EU Charter of Fundamental Rights protecting in particular the most vulnerable – constitute an important element in making European integration more equitable compared with a purely market-based outcome. Transitioning from the MDGs to the SDGs; CEB and Rio+20; Millennium Development Goals. Agriculture and globalization: Food security and sustainability. A similar reasoning applies to the free flow of capital. Over time, enlargement extended this promise to the new democracies in southern and eastern Europe. This would not have been possible without a global economy. Globalization quote by Stephen Harper, former Prime Minister of Canada “We have to remember we’re in a global economy. (2014), “Estimating the Impact of Trade and Offshoring on American Workers using the Current Population Surveys”, Review of Economics and Statistics, 96(3): 581-595. Changing course in the current approach to the global war on drugs is the first element of our agenda. GLOBALIZATION OF SUSTAINABLE DEVELOPMENT? In this brief contribution we explore two specific critical risks posed by globalisation for conflict-affected and fragile countries. [11] Without such convergence processes, neither the European Union nor Economic and Monetary Union (EMU) would have been possible. Sustainable development approaches the concept of life quality, under economic, social and environment aspects, promoting the idea of balance between economic growth, social equity, efficient use and the preservation of the surrounding environment. Introduction Although the term “globalization” has already become a cliché, the concept itself is not new. Kathy Dhanda . The export of arms and security services has become a thriving business that, however, also enables and perpetuates conflict. As we can see, peace, stability and sustainability are global commodities that economic and political liberalism cannot produce. It is less clear, however, whether deglobalisation patterns can be identified when using other metrics of financial integration. 1, 2012, pp. BBC 2012 ‘Q&A: Mexico’s Drug-related Violence’, BBC. Empirically, it is also well documented that globalisation was associated with a rise in inequality within the developing and the developed countries, although establishing a causal link is more challenging.[17]. A more sophisticated version of this popular claim appears in academic discussions about the “political trilemma of the world economy”. For more information please go to: http://www.pumpkin-interactive.co.uk/collections/geography/products/issues-in-globalisation-environmental … OECD 2011 Supporting Statebuilding in Situations of Conflict and Fragility: Policy Guidance, Conflict and Fragility (Paris: Organisation for Economic Co-operation and Development). More than two years in the making, "Raising Our Game: Can We Sustain Globalization" was released by SustainAbility, a corporate responsibility and sustainability consultancy. Some countries may experience an improved local environment as a result of the globalization process whereas others experience a deteriorating one. European integration and “globalisation” are at least partly based on the same principles. • If globalization has contributed to these problems, can it be used to help solve them? [9] As a corollary, we can find ourselves only in situations where we either (i) stick to democracy and national determination while compromising on economic globalisation, as under the Bretton Woods system, (ii) maintain the nation state, but make it responsive only to the needs of the international economy at the expense of domestic objectives, or (iii) establish a form of “global federalism”, where we, to quote Rodrik, “align the scope of democratic politics with the scope of global markets”. 563–584. 22 August. (2011), “Managing Capital Inflows: What Tools to Use?”, IMF Staff Discussion Note, April 5, SDN/11/06. [26] But lump-sum transfers are enforceable only if governments keep control of their tax and benefit systems, which financial globalisation has called into question. Other channels through which free trade can raise overall efficiency include: increased economies of scale due to larger markets, aggregate productivity gains due a reallocation towards more productive firms and, at the firm level, productivity gains from higher-quality imports. In the short-term, as we have seen in the past few years, volatile short-term capital flows can threaten macroeconomic stability. It exposes the interplay of sustainable development and globalization that will define the future. Such ‘exporting of ideas’ takes on different forms that range from benign to unintentionally harmful or intentionally manipulative and damaging. The Single Market and Economic and Monetary Union clearly enhance Europe’s global influence in four ways. Whether or not they have been successful is debatable, but this has little to do with globalisation.[12]. SUSTAINABILITY IN THE CONTEXT OF GLOBALIZATION ... economic and ecologic stability (Caracota and Caracota, 2004, p. 13). However, on the basis of the literature I . The sustainability of globalization may or may not flow in a similar way for all countries. In practice, it means that we have to enhance the legitimacy of international economic rules, allow for different economic and social models to the extent that fair competition and macroeconomic stability is not impaired, and explain the case for globalisation in more nuanced ways. Globalisation with a Twist: Stability, Volatility and Fragility All in One. [16], But like technological progress, free trade has distributional effects. In the realm of politics, the swift, domino-like overthrow of autocratic regimes in Tunisia, Libya and Egypt springs to mind, enabled by powerful technological platforms and a sense of deprivation fed by acute and detailed awareness of circumstances at home as elsewhere. [30] But the European sovereign debt crisis has demonstrated that the original design of EMU was incomplete and did not prevent inefficient boom-and-bust cycles within the euro area. Economically, commodity price spikes or crashes, often in part transmitted through rapid changes in global demand and supply, frequently lead to food riots. Portland, Oregon 97203-5798 . This should be achieved largely by improving overall institutional quality and supervisory frameworks and, as a last resort, by resorting to capital flow management measures. Let me now sketch out how the European project can help make globalisation sustainable both inside Europe and worldwide. This suggests that a more enlightened and balanced approach is required than hunting down terrorists and freezing assets. Job automation and rising tensions in the labor force will bring even more volatility in the future, says political economist David Brady. 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