An ArticleonCaught by Globalization: Ways to respond

Submitted toProf Dr. Rashed Uz. ZamanCourse Instructor Globalization and International Organization (Paper 540)Department of General and Continuing EducationNorth South University

In partial fulfillment for the requirementof the Course OnGlobalization and International Organization (Paper 540)

Submitted by Raju Sharma Student ID: 1030020085 Masters in Public Policy and Governance Program Department of General and Continuing Education North South University

Date:

Date: November 14, 2011

Date: November 14, 2011AbstractGlobalization as a process of increased interaction among different cultures (social), ideologies (political) and products (economic) has been a reality too big to ignore. With its rapid pace and extensive coverage, many contend that some aspects of life has already been shrunk, in space and time dimensional both. It affects material aspects of life and also affects non material aspects of life like sovereignty, freedom and identity. Globalization has changed the roles, jurisdictions, and power of a nation in being able to control its own destiny. With a globalized world, countries are learning ever more dependent nature of their existence with each other, although, some learn the hard way. Different countries have responded globalization issue differently, which this paper seeks to discuss, based on analysis of their history, development and institutional capacity. It also looks into relation between globalization and a nation and recommends a path based on existing power structure in the world and irreversibility of globalization phenomenon. After highlighting factors which matter while responding to globalization, the paper goes on to recommends some way forward to how nations should deal with globalization. It argues that running away from globalization would hurt more than getting integrated. The issue is not whether globalization should be responded or not, instead, the issue is how best to respond to globalization. States that are unable to adapt itself to globalization will find themselves increasingly marginalized and irrelevant in the globalized world. Moreover, therearepolicy options that allow states to play central roles in this globalized state of affairs. Based on the institutional capacity and international standing, some countries should work to preserve globalizations pace while other should try to maximize their benefits from globalization.

Table of Contents Abstract1.Background12.Introduction33.Globalization and Nation-States54. Factors Which Affect Responses to Globalization84.1 Economic history84.2 State orientation/Basis/Principles on which the state is created94.3 Level of Openness/Preparedness104.4 Public Opinion115.Globalization: Taming or Harnessing It125.1 Strategy 1: Tame Globalization135.2 Strategy 2: Harness Globalization156.Conclusion16

References

1. 2. BackgroundA French farmer attacks an American multinational food chain construction sites in August 1999. He is highlighted as a National Hero who spoke about the need of preserving French culture and not let forces of globalization erode it. It is taken as a symbolic protest to globalization. In India, Krishna works in a call centre. He leaves late in the evening for work, becomes John when he enters his office, acquires a new accent and speaks a different language than he does at home to communicate with his clients who are living thousands of miles away. He works all night, which is actually day time for his overseas customers. Krishna renders service to somebody who in all probability he is never likely to meet physically. His holidays also do not correspond to the Indian calendar but to those of his clients who happen to be from the US. Globalization has caused it. A colourful lantern called fawanis, used during Ramadan in Egypt is manufactured in China which has caused local Egyptian fawanis maker to run out of business (Friedman, 2005). Chinese made fawanis are cheap are made from plastic for durability, making fawanis available to those Egyptians who previously could not afford fawanis. This is also linked with Globalization. The SARS was transferred from one person in Hongkong to 4000 people around the world with an estimated cost of USD 30 billion. Globalization is working. The extremists, who are against globalization, use high speed internet technology to relay their messages to the world. As much State-actor is being empowered by technological development so are the terrorists. The violence unleashed by hundreds of thousands of members of youth gangs or maras in Central America is a source of alarm for political leaders and civil society organizations, which have failed to come up with effective solutions to curb the growing phenomenon. Social scientists report that Central Americas maras are branches of gangs in the U.S.--a combined effect of globalization and the poverty and social marginalization that reign in this region (http://www.educationforjustice.org). Prime Minister of Malaysia Dr Mahathir criticizes globalization and bigger players of globalization like IMF, World Bank, and WTO, the west and urges to look east for value-based- development in an international platform (global forum) which is another indicator of globalization. A Nepali national, Sarika is a first generation learner who has done remarkably well throughout her school and college life by working very hard. She now has an opportunity to take on a job and begin an independent career, which the women of her family had never dreamt of earlier. While some of her relatives are opposed, she finally decides to go ahead because of the new opportunities that have been made available to her generation. People in a remote district of Nepal, where the only possible means of transport is walking, and who know nothing of globalization, wear footwear made in China. These facts point towards a reified[footnoteRef:2] concept in social sciences - Globalization. [2: Reification: making [some idea] into a thing" "objectification" or, regarding something as a separate business matter, is the consideration of an abstraction, relation or object as if they had living existence and abilities.]

The term is as much hated as it is loved. It has helped certain aspects of life related to economic prosperity, technological diffusion, overcome geographical barriers and health consciousness etc. It is argued to have caused detrimental effects to environment, culture, and economies of certain countries. Scholars like Francis Fukuyama and Samuel Huntington reveal aspects of globalization when they used terms The End of History[footnoteRef:3] and Clash of civilizations[footnoteRef:4] respectively while World Systems Theorists like Samir Amin and Immanuel Wallenstein also touch globalization in developing the World System theory[footnoteRef:5] and dependency theory[footnoteRef:6]. [3: Frank Fukuyama's 1992 book The End of History and the Last Man had profound and lasting impact with its declaration that science and technology, the growing global economy, and liberal democracy are leading history in a quite different direction than Marx and Hegel imagined.] [4: The article suggested the world was returning to a civilization dominated world where future conflicts would originate from clashes between 'civilizations'.] [5: World-system refers to the international division of labor, which divides the world into core countries, semi-periphery countries and the periphery countries. Core countries focus on higher skill, capital-intensive production, and the rest of the world focuses on low-skill, labor-intensive production and extraction of raw materials.] [6: Dependency theory is a body of social science theories predicated on the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former. It is a central contention of dependency theory that poor states are impoverished and rich ones enriched by the way poor states are integrated into the "world system."]

3. IntroductionThe term globalization has, as is often the case in the social sciences, many very different accepted usages. Globalization means the establishment of a global market for goods and capital and the progression towards a global system of production. In its broadest sense globalization refers to the existence of relations between the different regions of the world and, as a corollary, the reciprocal influence that societies exert upon one another (Samir Amin, 1996). This process is considered ever growing through trade, extension of social relationships, migration, terrorism, technological development, and numerous environmental problems. Globalization refers to the process of the intensification of economic, political, social and cultural relations across international boundaries(Akindele, 2003). Globalization seems to promote a basic set of concepts with it related to free-market economics, liberal democracy, good governance, gender equality and environmental sustainability among other holistic values for the people of the member states. Many contend that Globalization is the compression of time and space (James Mittelman, 1996 and David Harvey, 1989, cited in Guillen, 2001), increased perception of worlds unification and interweaving of national economies; as well as the global diffusion of practices, technologies and values. Globalization means that from now on no activity in the world is locally limited, but all inventions, victories and catastrophes can affect the whole world and [people] have to realign and reorganize their lives, actions, organizations and institutions along a local-global axis (Sphar, 2008). Globalization is a multidimensional concept. It has political, economic and cultural manifestations, and these must be adequately distinguished. It affects material aspects of life and also affects nonmaterial aspects of life like sovereignty, freedom and identity. Globalization involves changes in both the super-structures of a nation/community and the micro-structures of a persons dispositions and identity. It extends deep into the core of the self and its dispositions, facilitating the creation of new individual and collective identities by the intensifying relations between the individual and the globe.Historically, international transfer of ideas, cultural elements, technical inventions, human capital, goods and services has been the most prominent aspect in the creation of what has now come to be called global society.Such transfer has been going on for centuries in certain quarters, except that now it is much more frequent, rapid, and widespread. Globalization has been variously named as Market globalism (Neoliberals), justice globalism (political left) and jihadist globalism. Market globalism seeks to endow globalization with free-market norms and neoliberal meanings. Justice globalism constructs an alternative vision of globalization based on egalitarian ideals of global solidarity and distributive justice. Jihadist globalism struggles against both market globalism and justice globalism as it seeks to mobilize the global umma (Muslim community of believers) in defense of allegedly Islamic values and beliefs that are thought to be under severe attack by the forces of secularism and consumerism (Steger, 2003).There are debates regarding globalizations affect on state. Scholars such as Anthony Giddens and Martin Wolf (quoted in Putzel, 2005) argue that the ability of government to do what they do has decreased. All over the world, the old welfare state is now giving way to a more minimalist state that performs certain core functions such as the maintenance of law and order and the security of its citizens. However, it withdraws from many of its earlier welfare functions directed at economic and social well-being. In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities. The entry and the increased role of multinational companies all over the world lead to a reduction in the capacity of governments to take decisions on their own. However, globalization does not always reduce state capacity. Developed countries have carefully guarded their borders with visa policies to ensure that citizens of other countries cannot take away the jobs of their own citizens.While globalization has led to similar economic policies adopted by governments in different parts of the world, this has generated vastly different outcomes in different parts of the world. An important question is how nations should respond to reap benefits from globalization. This paper deals with the issue of responding to globalization. Rather than submitting to the recommendations of RTB[footnoteRef:7] theories or World Systems theories, this paper analysis relationship between globalization and a nation and recommends a path based on existing power structure in the world and irreversibility of globalization phenomenon. [7: ARace To the Bottom (RTB)is aconcept that is argued to occur between countries as an outcome ofregulatory competition, progressive taxation policies and social welfare spending. When competition becomes fierce between nations over a particular area of trade and production, countries are given increased incentive to dismantle currently existing regulatory standards. ]

4. Globalization and Nation-StatesThe merger of authority and solidarity that the nation-state accomplished for about 200 years is now threatened by the winds of globalization (Reis, 2004). The statement introduces an important debate about the role of state in globalization. The origins of the modern nation-state system can be traced back to seventeenth-century political developments in Europe. In 1648, the Peace of Westphalia[footnoteRef:8] formulated principles of sovereignty and territoriality, to model states which challenged the prevailing concept of nation in which political power tended to be subordinated to a larger imperial authority. It strengthened a new conception of international law based on the principle that all states had an equal right to self-determination. According to political scientist David Held[footnoteRef:9], the Westphalian model contained the following essential points: The world consists of, and is divided into, sovereign territorial states which recognize no superior authority. The processes of law-making, the settlement of disputes, and law enforcement are largely in the hands of individual states. International law is oriented to the establishment of minimal rules of co-existence; the creation of enduring relationships is an aim, but only to the extent that it allows state objectives to be met. Responsibility for cross-border wrongful acts is a private matter concerning only those affected. [8: The Peace Treaty of Westphalia marked the end of the Holy Roman Empire as an effective institution and inaugurated the modern European state system in 1648.] [9: David Held Democracy: From City-states to a Cosmopolitan Order?[Selections from: Robert E. Goodin and Philip Pettit, (eds.)Contemporary Political Philosophy: An Anthology, Oxford: Blackwell Publishers, 1997. First appeared inPolitical Studies, 1992.]]

During the 1970s, it became clear that the international society of separate states was rapidly turning into a global web of political interdependencies that challenged the sovereignty of nation-states. The concept of sovereignty as spelled in the Westphalian treaty changed into sovereignty, in the light of cooperation, among nation- states. In the development discourse, a phrase poverty anywhere is a threat to prosperity everywhere also showed that a country cannot but has to get involved in others countrys affairs, even for its own security. Consequently terms such as new world order[footnoteRef:10], demise of nation-state and world without borders[footnoteRef:11] and global village[footnoteRef:12] were increasingly used in the discourses related to Sociology, International Relations and Public Policy. [10: New World Order connotes disparate meanings related to strengthening role of UN, International cooperation on a range of North-South economic and security problems and nuclear disarmament.] [11: World Without Borders is a phrase implying greater connectivity among individuals where universal values are emerging leading to the national borders being blurred/faint.] [12: Global Villageis a term closely associated withMarshall McLuhan. McLuhan described how the globe has been contracted into a village by electric technologyand the instantaneous movement of information from every quarter to every point at the same time. ]

States continue to remain important. The primacy of the state continues to be the unchallenged basis of political community. The state continues to discharge its essential functions (law and order, national security) and consciously withdraws from certain domains from which it wishes to. The role of state in liberalizing their economies also provides hints about the interaction among nation- state and globalization because the rapid expansion of global economic activity can be reduced to political decisions to lift restrictions. After all, economic forms of interdependence are set into motion by political decisions, but these decisions are nonetheless made in particular economic contexts. Governments can still take measures to make their economies more or less attractive to global investors. In addition, nation-states have retained control over education, infrastructure, and, most importantly, population movements. Indeed, immigration control, together with population registration and monitoring, has often been cited as the most notable exception to the general trend toward global integration. In some respects state capacity has received a boost as a consequence of globalization, with enhanced technologies available at its disposal, state collect information about its citizens. With this information, the state is better able to rule, not less. Thus, states become more powerful than they were earlier as an outcome of the new technology. Finally, series of drastic national security measures that are implemented worldwide as a response to the terrorist attacks of 9/11 are proof that challenges predictions of a borderless world without states. There are chances that states might impose restrictions on the freedom of movement and assembly. At the same time, however, the activities of global terrorist networks have revealed the inadequacy of conventional national security structures based on the modern nation-state system, thus forcing national governments to engage in new forms of international cooperation. The biggest impact on the functioning of the state has, therefore, been in how states rearrange themselves in light of pressures from international institutions and demands from local community groups and separatists. The integration of regional economies into a single economic community and international organizations charged with responsibility to oversee/ conduct rules-of-game at the international level are all done by the state. Here again the state is a major actor in promoting global governance by providing ample space for voluntary civil society organizations. It must also be reinforced, that the state jurisdictions has been curtailed by the emergence of for-profit and not-for-profit organizations at the local, regional and international level. This shows the role of state has changed but not receded. State, at present, has to deal with many factors while making policy decisions than it would have done previously. The global threat to collective prosperity also calls up for a strong role of state.

4. Factors Which Affect Responses to Globalization

4.1 Economic historyAlthough the pressures from globalization on Nations are similar, the responses given by each nation are various. Among other things the responses have depended upon the economic history of the nation. It also corresponds to the fact that a nation history is the single most determinant factor because history is a composite fable of country legal, institutional and cultural attainments (Cardoso, 2009). Britains ability to prosper was facilitated by sea route, inside and outside Great Britain as against Africa which despite having natural resources could not prosper. Jim Tomlinson (2010) shows how Dundlee, a city in Britain, was able to benefit from globalization by carrying out its heritage of linen industry and changing into jute industry after cheap raw materials were brought about from Calcutta in India. Dundees ability to reap benefits from globalization was as much based on its economic history as it was based on its political leadership and easy sea routes for trade.Jeffrey Sachs opines that Britain was able to reap huge benefits from first wave of globalization because of being an island economy close to continental Europe and North America. Britain has navigable rivers ways for internal trade also. Likewise those parts of Africa have higher per capita GDP which have access to sea route, meaning those countries related to the globalized worlds through trade, are more prosperous. Singapore is another case at hand. Many believe that Singapore developed after 1950s but the important infrastructure like sea ports, system of trade, easy sea route- ports, assertive bureaucracy were laid in the early part of the 20th century. During its initial days of becoming a nation, Nepal favoured complete closing of its border and putting stringent control on trade with china and India to provide protection to its industries. Successively Nepal was closed for foreign trade for a century from 1800s to 1900s (Bista, 2004). The present economic structure of Nepal with few industries and limited market provided ample space for Indian goods to invade the Nepali market after Nepal opened its boundary during 1950s. Such massive was the flow of goods into Nepal that almost 90% products in Nepal have Indian origin and a substantial percentage of Nepali primary products find their market in India. 4.2 State orientation/Basis/Principles on which the state is created Another important factor is State Orientation. Those countries which have personal freedom as their core principles and others which value equality and collective solidarity as their core principles. This distinction can also be correlated with development of neo-liberals ideology and socialism respectively. Those state which idealize collective freedom and guidance of state are wary of globalization than state which base their ideals as individual freedom. The promise of relief to the populace has been used in these countries where culture has emphasized responsibility of Patron to take care and guide the lives of majority (Financial Times, Oct 1, 2006). Political figures in countries like France, Cuba, Venezuela, China, Africa, and Singapore have been cautioning their citizens about globalization and have responded differently then countries like USA, UK and Australia and Canada (Behrman, 2008). In France, where people traditionally look to the state for guidance and protection, French politicians have felt obliged to address globalization in their political programs and pronouncements. While only the extremes of the political spectrum have called for the process (somehow) to be halted, mainstream politicians have argued for measures to regulate and temper some of its perverse effects. Both socialist Prime Minister Lionel Jospin and conservative president Chirac often speak of the need for alternatives to unregulated markets of goods, money, and people and demand more rules to govern globalization (Gordon et al, 2001). Lionel Jospin, a left-wing politician, continued to liberalize and privatize large sections of the French economy but urged on the necessity of controlling market forces and globalization while Chirac, on the political Right, stressed the states role in ensuring social protection and help for the least advantaged members of society.

During its formation years in 1800s, Nepal also favored state as patron of the citizens and state responsibility towards the under-privilege. This thoughts coupled with religious fatalism (Bista, 2001) much explains the less integration of Nepal with the international economic order. Cardoso (2009) shows that a country with fewer alternatives for economic diversification have adopted a policy of anti-globalization after discovering that they have not gained from the globalization process. The ensuing political crises have led to the rise of a leadership with indigenous roots strongly influenced by the negativism typical of the anti-globalization reaction in countries like Bolivia, Ecuador and Venezuela.4.3 Level of Openness/PreparednessThe way a country responds to globalization by muddling through or deregulating or hoping for a fair playing ground at the international level is depended upon the level of openness. Those countries which have well established contract system, strong bureaucracy, private property rights, developed manufacturing sector and stable political environment are more open to globalization than countries which lack these conditions. Certain pre conditions exist without which mere opening of economy will not bring benefits to the country. For a country which has yet to develop institutions related to contract system and private property rights, the benefits from globalization tends to be minimum no matter even if they adopt liberalization policy. The results of Structural Adjustment Programs in developing countries provide ample evidence. Countries such as China, Singapore and Malaysia have benefitted from inflow of Foreign Direct Investment because of strong bureaucracy; export oriented manufacturing sector and highly educated human resources and availability of basic infrastructure. The introduction of globalization through liberal policies of Structural Adjustment Programs to developing countries have neither provided them opportunities for increased global investment nor provide protection for their infant industries to grow strength to compete at the international level.David Harvey provides important evidence that states which maintain a balance between the state and the market and organize on corporatist principles, like Singapore and Taiwan, have done relatively well in this era where the free market ideology is more the norm within the capitalist globalization process (Pinder, 2007). A successful case can be mentioned of Malaysia in its efforts to manage the 1997 Asian Financial Crisis. Malaysia rejected IMF prescription on how to manage the financial crises and became successful. As Harvey mentions the state market relation was based on corporatist principles and strong state. The asymmetry of power and interests of the member states of the global village, as well as the lopsidedness in the rules of the game there-in, have not benefitted weak countries (Akindele, 2002).4.4 Public OpinionThe responses of a nation to globalization are a political issue and here comes importance of public opinion. The orientation of the parties running government also affects the responses to globalization. The parties frame public opinion and advocate for stringent measures to counter globalization. From the United States to Japan, from Brazil to India, substantial sections of public opinion and key government leaders are now seriously questioning the effects of globalization and looking for ways to control it. The Seattle protest [footnoteRef:13]and the consequent flow of social movements against capitalism oriented globalization have caused public opinion to be shift from pure laissez faire economy to active role of state in the economy. [13: Protest activitysurrounding theWTO Ministerial Conference of 1999, aimed to launch a new millennial round oftrade negotiations, occurred on November 30, 1999 when theWorld Trade Organization convened inSeattle,Washington. The negotiations were quickly overshadowed by massive and controversial streetprotestsoutside thevenueand this became theanti-globalization movementin the United States.]

Of course there are people who favor for minimum government intervention and letting the market decide everything. Their views in the general discourse have been limited. In America some aspects of globalization related to the migration of people are strictly regulated by the government. In France spread of American soft drink gave rise to the concept of coca- colonization[footnoteRef:14] which was considered against French culinary culture. [14: Coca-colonization - a reference to the aggressively marketed American soft drinks domination in France.]

Adherence to the national culture also determines how a country responds to the global forces. Under influence of globalization long established traditions and belief system have come to contradict with values ingrained by globalization. Globalization generally promotes value of democracy, liberal traditions, personal freedom, and outward orientation. The public reacts to these values and different countries accept different aspects of globalization. The consequent result is the change in original culture of a country. A large inflow of Spanish speaking people in the USA has led to many cultural changes in the culinary traditions, habits, and linguistics of American life.

5. Globalization: Taming or Harnessing ItThere is no running away from globalization. One has to respond to it. Ideas like freedom, autonomy, justice and democracy have permeated state boundary and resulted into the huge social movements to bring about democracy and freedom in all countries of the world. Likewise globalization with its tentacles is bound to affect or permeate any national boundary. The development of communication systems at present have provided ample space to consolidate support and organize protests though facebook and other internet applications, as was seen in Egypt protests. Although very few percentages of people are connected this way but the pace of globalization is such that it will, in course of time, reach out to millions more people. The tremendous technological development in transport and communication system has shrunken the world. According to the World Bank Data 2009, 27.1% of the humanity are connected via internet and the almost 70% people have access to the cellular communication systems (http://data.worldbank.org/indicator/). Such linking of people has not happened anytime in human civilization. This provides optimism for the continued growth of globalization.Although Scholars claim that globalization process has been set back or slowed by wars and economic depressions, it is not just about economics to remain constrained by wars. The political and social and cultural aspects of globalization will continue to permeate the national boundaries even with persistent wars. Jagdish N. Bhagwati[footnoteRef:15], begins his newest book, In Defense of Globalization, dramatically by arguing that, first, globalization has improved the lot of humanity; that second, in part because of that improvement, the world must sustain, even deepen globalization; that third, globalization is still relevant. At the World Economic Forum concluded in New York, President Kaspar Villiger of Switzerland noted that globalization was inevitable, and that whoever disengages themselves from it, loses. He added that two-thirds of the worlds population had yet to reap the benefits of such globalization, and that in order to solve worldwide problems, we need to harness the growth potential of globalization. (Quoted in Frank et al, p. 372). So there remains no option for countries but to respond to globalization. Some countries can Tame it while others Harness it. [15: An eminent international trade scholar, Bhagwati has advised the United Nations Secretary General on globalization and the General Agreement on Tariffs and Trade secretariat in the Uruguay Round trade negotiations that gave rise to the creation of the WTO. He is a university professor at Columbia University in New York and a senior fellow in international economics at the Council on Foreign Relations in New York City, USA.]

5.1 Strategy 1: Tame GlobalizationA country should adhere to one of the above strategy based on its existing institutional capacity and international standings. Taming globalization would require a country to have more economic power and political/diplomatic influences around the world. This condition is available to few countries in the north and east. These countries have long been exposed to the globalization waves. They created it and they expanded it. Countries like Britain, France, and Germany and lately USA had adhered to capitalism in the 17th and 18th century which have provided these countries to expand their markets and be a global partner to trade. These countries have been able to draw upon resources from their colonies and achieved a huge rise in productivity. The increase in productivity led to surplus capital accumulation, some parts of which were invested in the technological development through investment in education and health. Consequently these countries raised the productivity of their labours and also provide ample space for its scholars to invent new technologies like Telegraph, telephone, electricity bulbs, Cars etc. The development of these material resources aided them in their quest for suppressing uprisings in the colonies as well as set some rudimentary infrastructural development in some of the colonies to extract more raw materials. They have also institutionalized many international agencies specialized in trade, human rights, Development which they have been able to manipulate such that they benefit. Due to their economic history and diplomacy, they are obviously in position to command international trade. These countries mobilize both national and international financial resources, opening the path for foreign investment in developing nations, utilizing trade in the development process, lessening the debt burden, increasing financial assistance as well as technological assistance for development. Taming globalization does not mean taking advantages of globalization such that other nations face severe disadvantages. Taming means to let the globalization process take place in smooth manner without any Backlash. The Backlash of globalization would be as dreadful to countries that should Tame globalization as those countries which aspire to harness benefits from Globalization. The issue is not how much globalized a country has become; the real issue is how much it has been benefitting from globalization. Poorer countries have benefitted from the rapid development of technologies, particularly in the communication, transportation and health sectors. Some countries have escaped several stages of development by diffusion of technology and skills. Jeffrey Sachs (2005) points out that china has almost achieved economic development at as faster rate of growth of around 10% than USA, to reach at the same level of trade. The annual growth rate of USA economy from 1857 to 1957 was 1.7% annually. So we can say that china, although a late entrant to global economy has nevertheless achieved a stage of development at a faster rate and with less investment in building technologies required for achieving such growth. These facts highlights that countries should now assess their international ranking in terms of benefits they derive from global trade and take responsibility to maintain globalization pace. 5.2 Strategy 2: Harness GlobalizationLikewise other countries can attempt to harness benefits from globalization to increase prosperity of the world. Harnessing means taking existing benefits from the global system rather than running away from it. It is argued by scholars such as Frank Paul Le Veness and Marilynn Fleckenstein that developing countries possesses economic conservatism[footnoteRef:16] which hinders their participation at the international trade. In writing of Africa, Nicolas van der Walle (2000) suggests that poor economic performance has been caused principally by the failure to attract extra-African investment, strong protectionism with regard to imports (although the continent relies heavily on trade), a heavy dependence upon foreign aid and lack of investment. He further notes that African trade consists of less than 2% of the totality of world trade which clearly appears to represent a figure far below what might have been expected to have been achieved. [16: Economic Conservatism characteristically strive to show that existing economic and political inequalities are well justified and that the existing order is about as close as is practically attainable to an ideal order.]

Developing countries need to identify their areas of comparative advantage and then participate in globalization. The range of feasible strategies depends on factors that differ from country to country, such as the local capacity, presence of foreign direct investment, participation of the public sector in production, capacity of the leadership, prevailing ideologies, and so forth. In other words, there are alternative paths but all paths lead towards globalization. Simultaneously investment in education, transportation, communication must be done so that the level of living standard continuously rises through the efficient use of resources gained though participation at the global trade. One strategy for the developing countries to benefit from globalization is to invest in the growth of service sectors rather than concentrate on producing primary products which have very low prices as against prices of manufacturing and service sectors. Based on comparative advantage developing countries like Nepal could open tourism sector for international players to come in. The partnership model between a foreign affiliate and national government or local partner benefits national government with help in financing all or some parts of tourism sector. The gains in tourism could be used to promote education, infrastructure etc in Nepal. Though a country adopting this strategy might find it difficult to deal with the internal political turmoil, in the long run the country would be benefitted though increased trade.

6. ConclusionGlobalization is too much big a reality to ignore or to run away from. This analysis is about globalization as it affects countries in terms of techno-economic and cultural trends and responses of countries towards globalization. Most discussions of globalization are one sided in that they either talk about global economy as providing either a panacea for all or a exploitative medium for capital accumulation at the center to the detriment at the periphery. This dialogue is generally influenced by the type of thinking which modernization theorists or world system theorists use in their analysis of globalization. It is suggested in this study that globalization is neither of these exclusively. Globalization has transcended certain spatial, cultural and socio-political boundary that the term bears an objective reality which deeply affects the subjective realm also. It is now running on its own momentum. It may affect different nations differently depending more upon national politics and policies and interests and decisions of independent actors and organizations than the conspiracy run by the advanced countries. Although the present wave of globalization is a result of colonialism past, its character and operations are vastly different. This system is based on a network of interdependent financial institutions, markets, technologies, peoples, ideas, and cultures, although the playing field is far from being level for all the players in it, But this is the most leveled field so far achieved by human civilization. The achievements of previous civilizations were constrained by geo-political factors to travel to other parts of the globe. Now with the speed of transportation and communication, innovation in any aspect of life anywhere in the world cannot remain within its political or cultural boundary. It is not only that multinationals are invading local markets. Local products have also crossed national boundaries. A simple search on internet about cottage industry products reveals thousands of small and cottage industry operatives who are marketing their products worldwide. Countries are participating in the globalization process not necessarily because they love it but because it is here to stay despite resistance by those who consider it truly evil. It is, as well, not clear what would it would mean for a country to have alternative to globalization. Scholars have not pointed out how a country can remain un-attached in an attached world.As this essay has sought to demonstrate, a state that is unable to adapt itself to these altered circumstances will find itself increasingly marginalized and irrelevant in the globalized world. It has further shown that therearepolicy options that would allow the state to play a central role in the transition towards this globalized state of affairs. Based on the institutional capacity and international standing, some countries should work to preserve globalizations pace while other should try to maximize their benefits from globalization.

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