With the World Economic Forum upon us, we take a look at some of the key areas that the worlds most influential leaders will look to tackle at Davos next week.
Two simple words “Globalization“ and “Controversial“ that once upon a time had nothing in common, now are used next to each other quite frequent. This fact is not a new one, and today globalization is seen as a controversial and complex issue.
Obviously, the World is deeply concerned about globalization and its effects, as well as the fact that this term has now become a dirty one. That’s why globalization is one of the things that will be discussed in the World Economic Forum at the end of this month. It is declared that “one of the most significant tasks facing the World Economic Forum will be to reassert the benefits of globalization“. As such threats like climate change, secession and workplace automation will likely be dominating, this year’s program will focus on creating a shared future in a fractured world. This includes
The best place to start in order to truly understand the complexity of globalization and how the perception of it changed so much is a basic ground. Do you know what the term “globalization“ really means? Globalization is a process of increased integration and co-operation of different national economies. It involves national economies becoming increasingly inter-related and integrated. It brings benefits, as well as negative costs.
Most of the benefits that globalization provides are now usually seen as natural ones — think free trade, free movement, increased economies of scale, greater competition from foreign firms and increased investments. It is responsible for greater choice of various goods in our countries, bigger export markets for domestic manufacturers, lower prices for consumers, possibilities of producing goods to different parts of the world, and enabling investments by multinational companies that play big roles in improving the economies of developing countries.
At this point, everything seems more than great when it comes to globalization, right? But that’s not the whole story, and the term itself did not become such controversial without a legitimate reason — or maybe a few. Basically, every benefit comes with some kind of disadvantage within it. Firstly, free trade can actually harm developing countries, as various industries in developing countries need protection from free trade to be able to develop, and such developing countries are often harmed by tariff protections. What is more, globalization actually increased the use of non-renewable resources, and it is also contributed to increased pollution, as well as global warming. While it is also responsible for enabling workers to move more freely, many countries find it difficult to hold onto their best-skilled workers, as they are attracted to go someplace else. It is also accountable for various tax competitions and tax avoidance cases.
Globalization is the main reason why the world now somehow seems like a smaller place today. It sure helped many citizens in such countries like China and India to get out of poverty, but situation is quite different when it comes to the West — here, the richest one percent now owns more than 50 percent of the world’s wealth. When you think about it, the world has actually become more fragile now, and instability in various sectors — as well as crisis all around — resulted in countries turning away from globalization. The challenges that we are facing today are bigger and more complex than ever. Uncertainty presents itself in all corners of the world. In 2015, the World Economic Forum hoped to create a new global context. When you sum up everything that’s going on in the world right now, this year’s the main goal is to at least start a meaningful discussion that could lead to progress when it comes to globalization. That is a good place to start, and we are excited to see the upcoming results.