Transition, Regional Development And Globalization: China and Central Europe
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Globalization has been hugely beneficial to Asia. Japan, South Korea, Taiwan, Malaysia, Singapore, Hong Kong, Thailand, and China have reaped lasting benefits from worldwide investment flows, knowledge exchanges, and rapid economic growth. And while globalization undoubtedly made the rich even richer, the poor also benefitted. Several Asian economies saw the emergence of a large middle class and the virtual elimination of poverty. The rural poor received higher wages after finding better quality manufacturing jobs in urban centers.
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And with improvements in technology and expanded trade, there was optimism about job prospects. In ethnically diverse societies such as Malaysia, globalization contributed significantly to the reduction of racial tensions rather than exacerbate them, contrary to what is happening in the West. There is no question that the West has also benefited from globalization. The United Kingdom and the United States have seen huge gains in the services sector, especially in financial services. However, the accompanying income inequality is of a different hue than in Asia.
Younger, better educated workers located in cosmopolitan urban centers such as New York and London have seen a phenomenal increase in their income. On the other hand, older, less educated workers in the rusting industrial belts of northern England and America have lost their jobs to manufacturers overseas. The recent voting patterns in the U.
How did Asia achieve a shared prosperity from globalization with consistent domestic political support while the rich countries have struggled and are suffering the political blowback? The answer may lie in the heavy investment made by Asian governments in human capital education and health to prepare the workforce to take advantage of the high wage manufacturing jobs created by globalized investment.
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This was complemented by public investment in infrastructure to continue to attract foreign investment. The fiscal deficits associated with large public investment in human capital and physical infrastructure were tolerated because the political and economic benefits of preparing the workforce for new jobs were considered worthwhile objectives. Both the U. In the U. K, it happened under the watch of the incumbent conservative government.
China’s Win-Win Globalization
While presenting to Parliament the result of the recent referendum to the European Union, Prime Minister David Cameron spoke proudly of leaving behind a sound economy resting on the pillar of a sharp fiscal retrenchment—low taxes and even lower public expenditure. Badly needed public investment in health and education to prepare workers and an overdue upgrade of infrastructure to attract investment have been thwarted by a Congress wedded to fiscal austerity.
This has prolonged the pain of transition to new jobs. The long and painful transition to productive jobs has resulted in the clamor for reneging on globalization commitments. But long before , people began to link together disparate locations on the globe into extensive systems of communication, migration, and interconnections. This formation of systems of interaction between the global and the local has been a central driving force in world history.
Q: what is global? A: the expansive interconnectivity of localities -- spanning local sites of everyday social, economic, cultural, and political life -- a phenonmenon but also an spatial attribute -- so a global space or geography is a domain of connectivity spanning distances and linking localities to one another, which can be portrayed on maps by lines indicating routes of movement, migration, translation, communication, exchange, etc.
Q: what is globalization? A: the physical expansion of the geographical domain of the global -- that is, the increase in the scale and volume of global flows -- and the increasing impact of global forces of all kinds on local life.
Globalization: What the West can learn from Asia
Moments and forces of expansion mark the major turning points and landmarks in the history of globalization. Alexander the Great sues for peace with Chandragupta in at Gerosia, marking the eastward link among overland routes between the Mediterranean, Persia, India, and Central Asia. These national empires expand during the industrial revolution, which also provokes class struggles and new ideas and movements of revolution within the national states and subsequently in their empires as well.