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BAD CHECK OF GLOBALIZATION 0

Admin | 10:05 PM |

For Thomas Friedman (1997) the economic substantive of globalization is free market capitalism idea.

The main thing is, the wider economic being opened for free trading and competition the more efficient and thrive your economic will be. The more obedient to elementary principles of free market, the more prosperous your country will be.

This conviction was strongly adhered in mind of so many developing countries. Their decision makers often say that they don’t sweat to avoid phenomenon of globalization. There’s no other choice for these countries except playing an active role in this. Such positioning become a main reason for them to be involved actively in all negotiation at global, regional, and bilateral level. While at domestic level privatization policies, deregulation, and liberalization became irreplaceable choices.

For French economist, Robert Cohen (2006), a dangerous illusion is imagining an active participation in globalization will give a prosperity spread spontaneously. To him, communication technology presented the reality of developed countries prosperity on TV and pleasant to saw, but it was almost impossible for many developing countries to reach. A bitter expression of Joseph Stiglitz says; “It’s better to be a cow in Europe than to be a poor person in a developing country” (Stiglitz, 2006:85).

Competition strategy
The main rule of the game of globalization is free competition, powerful competitors were include for sure. But Alexander Hamilton (1755-1804) said, USA must conduct protection and subsidy to face previous developed England through industry revolution. US in George Washington era refused England pressure to implement free market economic. Just like a sprint race, England take a first start and would be a winner, while US remained a looser (Krane an Amawi, 1997).

Historically, the late countries in developing their industries such us Germany, Italy, Japan, North Korea, or even US, have an anti-free market attitude in the beginning. They apply subsidies for industries and imposed fare as high as possible on imported goods from more developed countries. Fare and subsidies were lessened only when they were ready. Contrarily, they are promoting free market now with so many calculations, how to win the competition and make their product floods other countries.

Agriculture sectors are an exception. Doha Development Round was stopped by unwillingness of developed countries (US, EU, and Japan) to open their market for agriculture products of developing countries. Whereas in manufacture sectors, copyrights and services developing countries already take their consequences for them. And agriculture sector is a comparative advantage for developing countries in international trading. It’s mean if mutual benefit principle was well conducted, there’s no other choice for developed countries to put off their protection from this sector. But it’s not gonna happen.

To Cohen, globalization just like a bad check; giving a hope in the beginning, but causing a disappointment in the end.


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