Market Globalism

Although it brings little comfort to those that are enduring the rapid changes that globalization has created, Thomas Friedman (2007) provides some simple advice, “… the great challenge of our time will be to absorb these changes in ways that do not overwhelm people or leave them behind” (p.50). The exact meaning of these words alone can only be understood by framing this phenomenon called globalization. Manford Steger offers a perspective of market globalism that is framed by five claims which he identifies in his book, Globalization A Very Short Introduction (2009).

Market globalism’s progression will have to rely on government in order to continue is an interesting point that Steger (2009) makes in his first claim of “liberalization and global integration of markets” (p.1030-104). In order to lessen stringent control of government on trade and market relations on the national and global scale will require government’s direct involvement to relieve some or all of the controlling policies, thus liberating the markets for global expansion. This is clearly the way that government and the market have operated in the past on a national scale. Policy reform would create regulations that were more or less strict and markets would have to operate by these. However, on the global level, the playing field is much broader due greatly to the rapid access to a much broader knowledge base and productive human resource capital. As the costs of the production of goods increased due to government regulations, this required the market industries to seek non-traditional methods of lowering these costs. Add a catalyst, such as technological advancements in world-wide communication, and the shift toward global solutions happened naturally.

“Globalization is inevitable and irreversible” is the second claim Steger makes (2009). At the core of globalization is the rapid evolution of a limited workforce to one of unlimited possibilities. Through in the fact that currently you can have access to this workforce at a fraction of the old cost and you can see why Steger makes this claim. The allowance of international trade, the need for transparency of corporate and industry operations and the ever-demanding need to turn a profit by lowering costs are all contributing factors in this new era. Thomas Friedman (2007) suggests that having access to a global workforce can be very beneficial to corporations and companies abroad. The global workforce is driven by globalization as it has empowered individuals. Friedman adds, “…people all over the world started waking up and realizing that they had more power than ever to go global as individuals, they needed to think of themselves as individuals competing against other individuals all over the planet, and they had more opportunities to work with those individuals, not just compete with them” (2007). Not only was the global workforce better equipped to seize this opportunity, they were driven to acquire the skills and means necessary. This drive and the desire to seek a better financial situation resulted in industry outsourcing of what Friedman (2007) refers to as “lower-end” work for a lesser fee and scaling up the amount of “critical” work completed by fewer employees that are more focused on the home-front.

This globally-competitive workforce continues to expand as the opportunities abound with little sign of slowing. Steger (2009) counters the claim that “nobody is in charge of globalization” made by market liberalist (p.103). He suggests arguments that “both the substance and the direction of globalization are to a significant degree shaped by American domestic and foreign policy” (Steger, p. 106). Friedman (2007) also claims that a significant role in the globalization direction is being played by corporations who have expanded to the international or global market. The way that these individual companies react to emerging trends in globalization will also play a role in the reshaping of globalization itself.

While Steger (2009) identified a fourth claim that “globalization benefits everyone”, this may only be partially true for the time being (p. 103). Friedman (2007) captures this rationale, “work gets done where it can be done most effectively and efficiently”. To carry this thought forward, the cheaper the labor, the less expensive the goods for the consumer. The more less-desirable jobs are outsourced, the more time and people available for the more critical jobs. However, there is a primary concern that Friedman (2007) alludes to but doesn’t come out and say. Part of the reason that outsourcing has been profitable and growing exponentially is because of the lower wages that are acceptable to persons from countries with a lower economic status. What happens as these very same people begin to increase their wages and standards of living, much like Americans did throughout our own history? It wasn’t long ago that a skilled laborer in American manufacturing was lucky to bring home a yearly salary of $3500.00.

The final claim that Steger (2009) explores is “Globalization furthers the spread of democracy in the world” (p. 103). There is little doubt that globalization will play a significant role in the reshaping of government and politics as we know it today across the globe. However, to presume that it will be democracy that spreads across the world would be a mere guess at best. As with any change, there is some degree of uncertainty in the outcome. Friedman (2007) stresses that these changes and uncertainties are going to be unlike none others we’ve seen before because of “the speed and breadth at which (they) are taking hold”.