Globalization: Tools of Globalization, International Monetary Fund

Globalization is a term used to refer to the integration of all issues from various regions in the world into global ones and this is done through the innovation and invention in various technologies that have enabled people to interact easily all over the world. In the modern world, people are more unified and they are seen as one entity rather than the traditional way where people of the world were identified by various cultures of all over the world. Globalization also refers to the fact that people have adopted a new way of doing things and this is best described by the fact that various phenomenons in the world have been brought under the umbrella of the global order and many people have helped in ensuring that globalization has developed over time. Various field of life has been very effectual in globalization and this includes socio-cultural, economic, political and technological. These fields have been combined to form a world where people are viewed as one entity rather than different entities. However, economic integration is the most prolific aspect of globalization (Zygmunt, 163).

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The concept of globalization was established towards the end of the nineteenth century when many countries started doing business on a wide range. However, it was slow at that time and there were a lot of hindrances due to limited technology and also the fact that there were wars around that time. After the Second World War, globalization started in earnest and this was because some politicians wanted to make the world a unified entity that did business together. This is because they recognized the fact that their specific countries stood a chance of making huge profits by trading with other countries. So in the real sense, globalization is dependent on trade and politics.

To this end, various organizations were established after the Second World War and the most prolific was the United Nations. Under the umbrella of the United Nations were the economical organizations known as Breton Wood Institution and these are The International Monetary Fund and the World Bank. These institutions were mandated to oversee the economical integration of all countries and also the promotion of the world’s developing economies so that they could catch up with other economies that had been developed before the war. These organizations also sought to stabilize the world economy and this was especially the economies that had felt the pinch during the war.

Tools of globalization

The most important tool for globalization is technology. Without technology, globalization would be a very elusive target for the world. Technology has helped globalization in that it has laid a basis under which people from all over the world can communicate with each other through the use of modern technology. Information and communication technology has played a very important role in enhancing globalization. In terms of trade, people from all over the world can be informed about the current economical trend and hence have a clue of what the economy is like. Information technology has helped various countries to transact business without necessarily having to be there physically. This means that it has eased the way people of the world we’re interacting and this has also helped the economy of the world to gain (Budhoo, 132).

Various technology concerned with the passage of information has been evolving around the globe since the inception of globalization. These technologies have been improving over time and one of the most prolific technologies is the telephone which has been used for a number of decades now. However, this technology has been improved so that now people do not need wired connections and they can also communicate easily all over the world. Another important technology as far as communication is concerned is the invention of the internet which has been very beneficial to people all over the world. This is because it affords a cheap way of communicating and it can also be done at any time of the day. Hence this combination of technologies has helped the world to increase its communication levels and this has helped the world as far as business is concerned (Zygmunt, 163).

Transport technological advancements have also been a very important tool for globalization and this has seen to it that products can be moved from one part of the world to another at very convenient speeds. This has been enabled by the use of air modes of travel which are very fast and also very secure means of transport. Apart from the fact that products are easily transferred from one region to another, there is also the benefit of the traveling of people from one part of the world to another part of the world. This has been enhanced by various technologies which include air travel, water travel, and a good network of roads in many countries of the world (Charles).

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The other important tool for globalization is the language and this has been selected to be English. Many countries are now adopting English as one of their languages and this has been enabled by various forces which seek to make the learning of English easy. Many articles in the world are written in English and a good percentage of websites are in English. Most international businesses are conducted using English and also many corporations in the world use English as their official language of conducting business (Bailey, 67).

International Monetary Fund

One part of modern globalization is the economic integration of the world’s economies and this is enhanced by the International Monetary Fund. The world economy is marked by an increased shift to financial transactions which are done all over the world. The International Monetary Fund has been mandated to supervise all financial systems of the world and it has adopted policies that relate to macroeconomic policies. This organization is also mandated to facilitate the development of the world economies especially those that do not have a developed status. This organization is headquartered in Washington, United States and it is also a lender of monies to ailing economies (Richard, 145).

This organization has been very beneficial to the world economy as it acts as a perfect to ensure that the world financial transactions are conducted within the guidelines and regulations that have been put in place by various entities chief of them being the International Monetary Fund itself. Other entities that help in keeping the regulations and guidelines include governments and the central banks of various countries. This organization has helped the world in facilitating a level operating ground for international financial transactions and in so doing it protects the interests of the weaker economies against the oppression that the developed economies may subject them to. This ensures that the interests of the growing economies are well taken care of by the organization (Hertz, 186).

The organization is also very beneficial to individual countries because it also lends monies to the countries that need the monies to undertake various development projects. The countries that benefit most are the developing countries and many projects have been funded by the International Monetary Fund and this has helped the countries in ensuring that the development projects are underway. This creates a platform where developing countries can borrow money from the organization and use the money to develop. However, in many cases, the organization lends money to the countries. A good example of these countries is countries in Africa like Uganda, Zambia, and other African countries where they have been lent money by the organization so as to cater for various development projects. Kenya benefited when it was given ten million dollars to improve its road infrastructure in the year 2002.

The organization has been very influential in the world’s globalization efforts and this is because it is the major organization that ensures that the economies of the world are integrated and this ensures that economies of the world perform like one entity. This has been very beneficial to the economies because the economies could relate to each other and this forms a basis for economical brotherhood among the nations of the world. It has also laid a basis under which the developed countries like the United States can interact financially with developing countries like Namibia (Charles).

Arguments against International Monetary Fund

However, the organization has faced some criticism for its use of conditions before it can lend money to the country. It has been noted to always insist on structural adjustments so that it can work with a nation. In this way, it has brought problems to many countries especially financial problems. This ends up being that the country will not benefit from the loans but will be left with a big loan to repay. It has also brought financial complications like the case of Kenya where the structural adjustments enabled unscrupulous businesses man to steal the nation a lot of money with the assistance of corrupt government officials (Budhoo, 154).

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These adjustments also force a country to increase the tax rates and this can not be at a worse time than when the country is experiencing economical hardships. This helps in degrading the lives of the citizens and hence more problems are created than solved. This has affected some countries, especially in Asia and Sub-Saharan Africa. A good example of this is Kenya when the country underwent a financial crisis which was fueled by the fact that the economical reforms and the interest rates of the country escalated (Oliver, 102).

It is important to note that the organization was established to stabilize the global economy and this should be one of its main objects. However, the organization has been cited to protect the interests of some of the major powers of the world at the expense of the weaker countries. This has been brought about by the big countries dictating terms and the organization adopting these terms. This means that the organization will have to put the weaker economies in a more precarious position to safeguard the interests of the richer countries which include such countries as the United States and the United Kingdom. It has also been cited not to favor the countries that do not adopt democratic forms of government and this is seen to the world as the organization forcing people to adopt the western way of governments as well as the western way of living. This has brought a lot of controversy in the way things are running in the organization this has also led to the fact that many governments do not adhere to the regulations of the organization. A good example of these countries is mainly Arab countries which see the organization as an instrument of the United States being used to further the interests of the country (Hertz, 236).

Conclusion

Globalization is very beneficial to the economies of the world and the establishment of the Breton Wood Institutes has played a very beneficial role in ensuring that the global economy is stable. However, these institutions have also played a part in the inequality that is being felt all over the world. There is a need for the institutions to implement policies so that the global economy can have an equal outlook, not the case as it is today because the richer countries are getting richer while the third world countries are getting poorer.

Works Cited

Bailey, R. The poor may not be getting richer but they are living longer. (2009). Web.

Budhoo, Davidson. Enough is Enough: Dear Mr. Camdessus… Open Letter to the Managing Director of the International Monetary Fund. New York: New Horizons Press, 1990.

Charles Kenny (2005) Why are we worried about income: Everything is converging. World Development. (2009). Web.

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Hertz, Noreena. The Debt Threat. New York: Harper Collins Publishers, 2004.

Oliver Boyd-Barrett and Terhi Rantanen: The Globalization of News (London, Sage, 1998)

Richard Barnet and John Cavanagh: Global Dreams: Imperial Corporations and the New World Order (New York, Simon & Schuster, 1994)

Sandra Braman and Annabelle Sreberny-Mohammadi: Globalization, Communication and Transnational Civil Society (New Jersey, Hampton Press, 1996)

Zygmunt Bauman: Globalization: The Human Consequences (Cambridge, Polity Press, 1998)

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