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INTERNATIONAL RELATIONS
PROGRAM: BS (EE)
ASSIGNMENT NO- 01
Submitted to: Mr. Muhammad Ilyas Ansari Submitted by: Majid ALI 091320-079
DATE: 10-01-2012
I am gratified to Almighty God who is our creator and his Prophet Muhammad (PBUH) for showing blessing on me to develop this Assignment. And his blessing that has brightened every part of my lives. I am thankful to my teacher Mr. Muhammad Ilyas Ansari for excellent conducting the course of International relations and for enabling me to complete this Assignment which enhanced my knowledge. I am also thankful to Mr. Muhammad Ilyas Ansari who assigned me this topic and resolves my issues regarding my Assignment and guided in making that Assignment. I state my modest thanks to my parents whose prayers today able me to complete the research paper. I would like to thanks all those people who help me in making this Assignment. I also state my gratitude teacher Mr. Muhammad Ilyas Ansari this is their effort, guidelines that today I have completed the Assignment successfully.
Page 5: INTRODUCTION & DEFINITION OF GLOBALIZATION Page 6: CAUSES OF GLOBALIZATION & ECONOMIC OVERVIEW OF PAKISTAN Page 7: WTO & IMPACT OF WTO ON PAKISTAN Page 8: PAKISTANS EXPERIENCE WITH GLOBALIZATION Page 9: PAKISTANS TRADE SECTOR & GLOBALIZATION AND REINDUSTRIALIZATION IN PAKISTAN Page 10: AVERAGE TRENDS IN UNEMPLOYMENT DUE TO GLOBALIZATION & GDP GROWTH RATE Page 11: THE PRICE CHANNELS Page 12: GLOBALIZATION TO POVERTY & CULTURE AND GLOBALIZATION Page 13: IMPACT OF GLOBALIZATION ON EDUCATION IN PAKISTAN & POSITIVE EFFECT OF GLOBALIZATION ON PAKISTAN Page 14: NEGATIVE EFFECT OF GLOBALIZATION ON PAKISTAN Page 15: SOME IMPORTANT LESSONS Page 16: CONCLUSION Page 17: BIBLIOGRAPHY
DEFINITION OF GLOBALIZATION
Globalization, by definition, is the integration and democratization of the world's culture, economy, and infrastructure through transnational investment, rapid proliferation of communication and information technologies, and the impacts of free-market on local, regional and national economies. The phenomenon of globalization has created a dichotomy of perception dividing the world into plethora of apprehensions and appreciations due to the intense velocity which the information about people, products, nature, environment, politics and economy disperses across borders, across countries and nations creating virtually one world into a global village. Here the golden words of late Dr. Mahbub-ul-Haq provides the true vision: "Globalization is no longer an option, it is a fact. Developing countries have either to learn to manage it far more skillfully, or simply drown in the global cross currents." Globalization is multidimensional and impacts all aspects of life economic social, cultural and political. Globalization in production and labor markets is leading to increasing outsourcing of parts, components, and services. The drive towards market liberalization has rapidly accelerated the pace of globalization during the past decade. Theoretically 1] Globalization opens up markets and ensures competition 2] Removes inefficiencies and leading to greater growth. 3] Ensures specialization takes place in areas of comparative advantage. 4] For labor abundant economies this means increased employment as well as growth. [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939-globalizationpakistan.html]
The origin of globalization can be traced back till the 16th century when the West started to explore and discover for the new worlds and continents, bringing the English to India in form of East India Company, there first multinational was born for us and the rest is recorded history. The process of global economic integration was perpetrated at the behest of World War II and the first Great Depression, when the leaders of Britain and the US fumbled with the idea of reconstructing the war-torn world monetary system with a focus on favoring free of capital internationally, turn endure a liberal, capitalist world at the end of war to counter the shadows of Socialism and Marxism. To promote the new monetary world order, a conference was convened in July 1944, at Bretton Woods, New Hampshire, to create the world's most powerful institutions: the International Bank for Reconstruction and Development (the World Bank), and the Internationally Monetary Fund (IMF). With the development of international financial markets in 1970s and the debt crisis of developing countries, several developing countries opted for stabilization and structural adjustment programs, to qualify for the loans from IMF and WB. The first IMF/WB Structural Adjustment Loan (SAL) was given to Turkey, in the backdrop of appropriate market oriented policies, accompanied with conditional ties, in 1980. These programs in a nutshell were aimed at liberalization of developing-countries markets. The reforms and conditional ties imposed laid basic foundation to open economies to steer the mechanism of economic integration giving birth to the most controversial of all among international organizations, the World Trade Organization. [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939-globalizationpakistan.html]
nevertheless to compromise Pakistan's ability to borrow internationally for years to come. The social indicators literacy, mortality, fertility, and poverty remain poor, even for a country with Pakistan's per capita income, and the squeeze on the budgets of the provincial governments suggests that this is unlikely to improve much in the short run. The country clearly faces a difficult challenge in reviving its economy and in achieving a level of social standards in which it can begin to take pride. [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939-globalizationpakistan.html]
years should be on reducing tariff dispersion, increasing transparency, making indirect taxes trade neutral, and closing loopholes in exemptions The Agreement on Agriculture provides significant opportunities for Protecting Food and Livelihood Security and Rural Development Opportunities through the designation of Special Products and Special Safeguard Mechanisms. We have not been able to take advantage of Pakistans Agricultural potential in Trade because of 1] Inadequate Research 2] Structural problems within Pakistan's agri-food economy; 3] Barriers encountered in accessing export markets; and 4]Competition from other countries' exporters. Implications for Pakistan of Abolishing the Textile and Clothing Export 5] the overall short run impact of MFA abolition will be positive on the textiles sector and negative on clothing. 6] This will result from the improvements in efficiency of its resource allocation and in world market prices outweighing the loss of quota rents Despite liberalization/WTO there are several challenges to increased market access: 7] exceptionally high tariffs on the products of the export interests of the developing economies; 8] tariff escalation impacting adversely the exports of value added products; 9] subsidies on agriculture sector, 10] indiscriminate use of anti-dumping and countervailing duties, etc. The Biggest Constraint is significant absence of capacity to analyze the emerging issues in WTO agreements and the implications for Pakistan. The general knowledge of the Agreement and its provisions is high among officials, traders and non-governmental organizations. However, detailed practical understanding of the Agreements and the consequences, particularly for market access, is lacking. Maximizing Gains from the WTO Very few institutions are in Pakistan where different stake holders can interact on the WTO issues. Most of the positions taken on WTO issues in Pakistan lack an empirical research basis and are most often based on assumptions. A clear policy perspective emerging through consultations is necessary before the country commits itself to any position at the international level. And before it does any of the above most important barriers to globalization are institutional and jurisdictional discontinuities and the diversity of national institutional arrangements and not traditional border-type measures such as import tariffs, quantitative restrictions, and restrictions on the flow of foreign capital. Elimination of these discontinuities, especially those in the area of labor mobility can provide large benefits [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939-globalizationpakistan.html]
with that of the rest of the world. Pakistans experience with globalization between 1990 and 2002 has not been great. Pakistans share in the world merchandize exports has fallen from 0.16 to 0.15. Chinas share in world merchandize exports went up from 1.80 to 5.04. Malaysias share in world merchandize exports has increased from 0.85 to 1.44 [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939-globalizationpakistan.html]
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All three sectors, first (government), second (business), and third (civil society) must work together towards achieving national development objectives and strengthen national institutions. Each sector can contribute a set of competitive advantages. [http://www.cssforum.com.pk/cssoptional-subjects/group/economics/28939-globalization-pakistan.html]
Thus despite increase in growth rate of output, trade and FDI. The unemployment rate, increased from an average of 3.5% during 1981-90 to 5.7% during 1991-2000, went up further to 6.7 percent in 2000-01, official statistics, as presented in the Pakistan Economic Survey (Statistical Supplement) for the year 2000-01, actually report unemployment in 2000-01 to be higher at 7.8 percent. [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939-globalizationpakistan.html]
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Globalization can affect poverty-inequality nexus through relative price changes in factor markets and goods market. Several effects are likely to occur. Protected industries will contract after the removal of tariff and NTBS of international trade. Consequently, the poor are likely to suffer in the short run. These adverse effects are mitigated in the medium to long term as the sect oral adjustment occurs and resources are diverted to more efficient export sectors of the economy. On the other hand, the removal of exchange rate distortions may help agriculture (much of the poor in the rural areas of the low income countries) as the producer incentives improve (Anwar, Tilat, 2005). How much they will gain from removing the distortions remains an empirical issue as several other factors are taken into account. In the last decade, global inflation has dropped from 30% per year to 4%. Rag off (2003) attributes this to a number of factors, especially globalization and deregulation. This disinflation channel has brought many benefits for the poor. The extent to which the effects of this channel act upon the less fortunate depends on the following: 1] How do they respond to lower prices? 2] Composition of tradable goods and non-tradable goods in their total consumption expenditures. 3] Their access to formal goods and credit markets 4] Their vulnerability to economic shocks, etc [https://editorialexpress.com/cgibin/conference/download.cgi?db_name=SERC2007&paper_id=241]
where the Indian manufacturers offered to supply Reilegh Bycle at Rs1100 against Pakistani price of Rs. 3000, Vaspa Scooter at Rs.35000 against Pakistani price of about 68000/- and Maruti car (our Suzuki Mehran) at Rs.250,000/- against Rs.375,000/- in Pakistan. They also offered steel and steel product at about 66 per cent of the prices being charged by the Pakistan steel mill. One wonders what would happen to whatever little industrial base we have in Pakistan if we enter into the race of globalization without any preparations to meet the global challenges. We will obviously be faced with numerous economic pulls and strings within the process of globalization, if we failed to prepare ourselves to face the emerging world scenario. We will, therefore, have to take tangible steps to safeguard our social, cultural and economic interests to resist the forces of pressure in the globalization process. [http://www.pakistaneconomist.com/issue2000/issue30/i&e1.htm]
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Globalization has several different connotations, meanings and perceptions (Hussain, I, 2000). To many it consists of trade openness, financial sector liberalization, financial integration, international labor flows and technological change. There are few subjects in the whole international community that are as much controversial as globalization. On one hand, there is a pro-globalization movement led by various international financial institutions and other countries successfully experiencing globalization. On the other hand, serious concerns shown by the rest of the world community are a sign of growing and widespread discontent with the globalization policies. The ongoing debate on this particular issue revolves around two questions: 1] How does globalization in some countries bring enormous benefits to the many, without bypassing the poor? 2] How does globalization, in other countries, bring huge benefits to a few by aggravating income inequalities, and increasing poverty? The answer to these questions requires a deeper insight into the channels through which globalization affects poverty. [https://editorialexpress.com/cgibin/conference/download.cgi?db_name=SERC2007&paper_id=241]
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by the renowned Nusrat Fateh Ali Khan. Other major Ghazal singers include Mehdi Hassan, Ghulam Ali, Farida Khanum, Tahira Syed, Abida Parveen and Iqbal Bano. In addition Pakistan is home to many famous folk singers such as the late Alam Lohar, who is also well known in the Indian Punjab. Hip-Hop is one of the categories in Pakistan that is rising very fast, especially rappers 2Pac, 50 Cent, and The Game are known throughout the whole country by many elementary scholars and teenagers. The arrival of Afghan refugees in the western provinces has rekindled Pashto and Persian music and established Peshawar as a hub for Afghan musicians and a distribution centre for Afghan music abroad. But now we can see that due to Globalization POP music is getting more and more fame among our people, even our Singers (e.g., Atif) are using Western instruments, lyrics etc.There are many other things that come under this broad term Culture. But due to some limits I would like to end my discussion that Globalization has strongly impacted Pakistani Culture some groups take it as negative and thought that our own culture is extinction due to it (e.g. Classical music), while some groups argue that our national culture is still same, only some new things are becoming a part of it (Dresses, Language etc).But I think its positive effect is dominating over negative. [http://www.cssforum.com.pk/css-optional-subjects/group-b/sociology/9900-cultureglobalization.html]
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[http://wiki.answers.com/Q/What_are_the_positive_and_negative_effects_of_globalization_towa rds_a_country]
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[http://wiki.answers.com/Q/What_are_the_positive_and_negative_effects_of_globalization_ on_third_world_countries]
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growth. With the reduction of tariffs, revenues from custom duties in Pakistan declined from 6% of GDP in 1989-90 to only 2.2% in 1999-2000. The reduction in tariffs also led to closure of many industrial units, which were previously functioning under heavy protection. This not only slowed down the rate of industrial growth from an average of 8% in the 1980s to 3.9% in the 1990s, but also led to a corresponding decline in revenues from excise duties and sales tax.
[http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939-globalizationpakistan.html]
CONCLUSION
As globalization involves enterprises and workers of nearly all the world's countries in the goods as well as in the service sector. Consequently, the majority of the world's labor force is experiencing the effects of international competition. There is need for a coordinated and collaborative effort among the South Asian countries to expand trade in the region. Pakistan needs to diversify its exports base and shift from primary agricultural products to more value added and industrial products. Privatization will have to be placed at the top of the Government agenda. Pakistan should increase exports not only to earn more foreign exchange but also to join the world community in globalization. Similarly, direct foreign investment is crucial for resource mobilization. It is therefore, strongly recommended that the government of Pakistan must attract foreign direct investment by giving them various incentives. Furthermore, financial depth is also playing crucial role in the overall development of the country. It is important that we should strengthen our financial sector for capital flow. Of course, political stability is crucial for economic development of the country.
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[http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939globalization-pakistan.html] [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939globalization-pakistan.html] [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939globalization-pakistan.html] [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939globalization-pakistan.html] [http://www.google.com.pk/url?sa=t&rct=j&q=impact%20of%20globalization%20in%20 pakistan&source=web&cd=2&sqi=2&ved=0CDIQFjAB&url=http%3A%2F%2Fwww.pi de.org.pk%2Fpdf%2FSeminar%2FGlobalization%2520and%2520its%2520Impact%252 0on%2520Poverty%2520Reduction.pdf&ei=kdAFT6bmI4jTrQe9hnzDw&usg=AFQjCNGP60lPuSFwMZHJZf4vDRLTZpsVDw&cad=rja] [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939globalization-pakistan.html] [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939globalization-pakistan.html] [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939globalization-pakistan.html] [https://editorialexpress.com/cgibin/conference/download.cgi?db_name=SERC2007&paper_id=241] [http://www.pakistaneconomist.com/issue2000/issue30/i&e1.htm] [http://www.cssforum.com.pk/css-optional-subjects/group-b/sociology/9900-cultureglobalization.html] [http://events.umt.edu.pk/EventDetails.aspx?EID=680] [http://wiki.answers.com/Q/Positive_effect_of_globalization_on_third_world_countries] [http://wiki.answers.com/Q/What_are_the_positive_and_negative_effects_of_globalizati on_towards_a_country] [http://wiki.answers.com/Q/What_are_the_positive_and_negative_effects_of_globalizati on_on_third_world_countries] [http://www.cssforum.com.pk/css-optional-subjects/group/economics/28939globalization-pakistan.html]