Globalization has changed the roles and power of nation-states in controlling their own destinies. While states remain important, providing security and withdrawing from some economic functions, their ability to make independent decisions has decreased with increased interdependence between countries. Different states have responded to globalization in various ways depending on their economic histories, principles of governance, openness, and public opinion. Rather than resisting globalization, states need to find ways to either preserve its pace or maximize their benefits from integration into the global system in order to remain relevant.

1. An Article
on
Caught by Globalization: Ways
to respond
Submittedto
Prof Dr. Rashed Uz. Zaman
Course Instructor
Globalization and International Organization (Paper 540)
Department of General and Continuing Education
North South University
Submitted by
Raju Sharma
Student ID: 1030020085
Master’s in Public Policy and Governance Program
Department of General and Continuing Education
North South University
In partial fulfillment for the requirement
of the Course On
Globalization and International Organization (Paper 540)
Date: November14, 2011

2. Abstract
Globalization 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, there are policy
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
globalization’s pace while other should try to maximize their benefits from globalization.

3. Table of Contents
Abstract
1. Background ................................................................................................................................1
2. Introduction ................................................................................................................................3
3. Globalization and Nation-States ...................................................................................................5
4. Factors Which Affect Responses to Globalization .............................................................................8
4.1 Economic history ......................................................................................................................8
4.2 State orientation/Basis/Principles on which the state is created .....................................................9
4.3 Level of Openness/Preparedness ..............................................................................................10
4.4 Public Opinion ........................................................................................................................11
5. Globalization: Taming or Harnessing It.......................................................................................12
5.1 Strategy 1: Tame Globalization ................................................................................................13
5.2 Strategy 2: Harness Globalization.............................................................................................15
6. Conclusion................................................................................................................................16
References

4. 1 | P a g e
1. Background
A 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 America’s 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).

5. 2 | P a g e
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 reified1
concept in social sciences - Globalization.
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 History2 and Clash of civilizations3 respectively
while World Systems Theorists like Samir Amin and Immanuel Wallenstein also touch
globalization in developing the World System theory4 and dependency theory5.
1
Reification:making[some idea] into a thing" "objectification"or,regarding something as a separatebusiness
matter, is the consideration of an abstraction,relation or objectas if they had livingexistenceand abilities.
2 Frank Fukuyama's 1992 book The End of History and the Last Man had profound and lastingimpactwith its
declaration thatscienceand technology, the growing global economy, and liberal democracy areleadinghistory in
a quite different direction than Marx and Hegel imagined.
3 The articlesuggested the world was returning to a civilization dominated world where future conflicts would
originatefrom clashes between 'civilizations'.
4 World-systemrefers to the international division of labor,which divides theworld into core countries,semi-
periphery countries and the periphery countries.Core countries focus on higher skill, capital-intensiveproduction,
and the rest of the world focuses on low-skill,labor-intensiveproduction and extraction of rawmaterials.
5 Dependency theory is a body of social sciencetheories predicated on the notion that resources flow from a
"periphery" of poor and underdeveloped states to a "core" of wealthy states, enrichingthe 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."

6. 3 | P a g e
2. Introduction
The 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 world’s 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 person’s 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.

7. 4 | P a g e
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 secularismand consumerism (Steger, 2003).
There are debates regarding globalization’s 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

8. 5 | P a g e
recommendations of RTB6 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.
3. Globalizationand Nation-States
The 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 Westphalia7 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 Held8, 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,
6 A Race To the Bottom (RTB) is a concept that is argued to occur between countries as an outcome of regulatory
competition, progressivetaxation policies and social welfarespending.When competition becomes fierce between
nations over a particulararea of trade and production,countries are given increased incentiveto dismantle
currently existingregulatory standards.
7
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.
8
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 in Political Studies,1992.]

9. 6 | P a g e
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.
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 other’s country’s affairs, even for its own security.
Consequently terms such as new world order9, ‘demise of nation-state’ and world without
borders10 and global village11 were increasingly used in the discourses related to Sociology,
International Relations and Public Policy.
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
9
New World Order connotes disparatemeanings related to strengthening roleof UN, International cooperation on
a range of North-South economic and security problems and nuclear disarmament.
10
World Without Borders is a phraseimplyinggreater connectivity among individualswhere universal values are
emerging leadingto the national borders beingblurred/faint.
11
Global Villageis a term closely associated with Marshall McLuhan.McLuhan described how the globe has been
contracted into a villageby electric technology and the instantaneous movement of information from every
quarter to every point at the same time.

10. 7 | P a g e
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.

11. 8 | P a g e
4. Factors WhichAffect Responsesto Globalization
4.1 Economic history
Although 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). Britain’s 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. Dundee’s 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

12. 9 | P a g e
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 state’s role in ensuring social protection and help for the least advantaged
members of society.

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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/Preparedness
The 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

14. 11 | P a g e
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 Opinion
The 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 12and 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.
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- colonization13’ which was considered against French culinary culture.
12 Protest activity surroundingthe WTO Ministerial Conferenceof 1999, aimed to launch a new millennial round
of trade negotiations,occurred on November 30, 1999 when the World Trade Organization convened
in Seattle, Washington.The negotiations were quickly overshadowed by massiveand controversial
street protests outsidethe venue and this became the anti-globalization movement in the United States.
13
Coca-colonization - a reference to the aggressively marketed American soft drinks domination in France.

15. 12 | P a g e
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 It
There 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.

16. 13 | P a g e
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. Bhagwati14, 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 world’s 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.
5.1 Strategy 1: Tame Globalization
A 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
14
An eminent international tradescholar,Bhagwati has advised the United Nations Secretary General on
globalization and the General Agreement on Tariffs and Trade secretariatin the Uruguay Round trade negotiations
that gave riseto the creation of the WTO. He is a university professor atColumbia University in New York and a
senior fellowin international economics atthe Council on Foreign Relations in New York City, USA.

17. 14 | P a g e
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.

18. 15 | P a g e
5.2 Strategy 2: Harness Globalization
Likewise 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 conservatism15 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.
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
15 Economic Conservatismcharacteristically striveto show that existingeconomic and political inequalitiesarewell
justified and that the existingorder is aboutas closeas is practically attainableto an ideal order.

19. 16 | P a g e
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. Conclusion
Globalization 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

20. 17 | P a g e
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 there are policy 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 globalization’s pace while other
should try to maximize their benefits from globalization.

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