Model Answer
0 min readIntroduction
Globalization, defined as the increasing interconnectedness of nations through trade, technology, and cultural exchange, has profoundly reshaped the world since the end of the Cold War. The past 25 years, particularly following the formation of the World Trade Organization (WTO) in 1995, have witnessed an acceleration of this process, largely driven by Western economic and political power. Initially framed as a pathway to universal prosperity and liberal democracy, globalization’s impact on the Western world has been far more complex, generating both significant benefits and considerable anxieties, leading to a re-evaluation of its tenets in recent times.
The Western Genesis and Early Benefits (1995-2008)
The late 20th and early 21st centuries saw the Western world, particularly the US, championing globalization. This involved promoting free trade agreements like NAFTA (1994) and later, the Trans-Pacific Partnership (TPP – though ultimately withdrawn from by the US), advocating for deregulation, and fostering the spread of neoliberal economic policies through institutions like the IMF and World Bank.
- Economic Growth: Western multinational corporations (MNCs) benefited immensely from access to cheaper labor and new markets in developing countries, leading to increased profits and shareholder value.
- Consumer Benefits: Consumers in the West enjoyed lower prices and a wider variety of goods due to global supply chains.
- Technological Advancement: Globalization facilitated the rapid diffusion of technology, particularly in the IT sector, boosting productivity and innovation within Western economies.
The Rise of Discontent and Backlash (2008-2016)
The Global Financial Crisis of 2008 exposed vulnerabilities within the globalized financial system and triggered a wave of discontent in the West. The crisis, originating in the US subprime mortgage market, quickly spread globally, highlighting the interconnectedness of economies but also the risks associated with deregulation and financial liberalization.
- Job Displacement: Manufacturing jobs migrated to countries with lower labor costs, leading to unemployment and wage stagnation in Western industrial regions. This fueled resentment and a sense of economic insecurity.
- Rising Inequality: Globalization exacerbated income inequality within Western nations, with the benefits disproportionately accruing to the wealthy elite. According to the OECD, income inequality in most OECD countries increased significantly between the 1980s and the 2010s.
- Erosion of Social Safety Nets: Pressure to compete in the global market led to cuts in social welfare programs, further exacerbating economic hardship for vulnerable populations.
Challenges and Re-evaluation (2016-Present)
The election of Donald Trump in 2016 and the Brexit vote in the same year signaled a significant backlash against globalization within the West. These events reflected a growing sense of nationalism, protectionism, and anti-establishment sentiment.
- Protectionist Policies: The Trump administration imposed tariffs on goods from China and other countries, challenging the principles of free trade.
- Reshoring and Nearshoring: There has been a growing trend towards reshoring (bringing production back to the home country) and nearshoring (relocating production to nearby countries) to reduce reliance on distant supply chains, particularly highlighted by the COVID-19 pandemic.
- Geopolitical Competition: The rise of China as a major economic and geopolitical power has challenged the Western dominance in the global order, leading to increased competition and tensions.
- Supply Chain Resilience: The pandemic exposed the fragility of global supply chains, prompting Western governments and businesses to prioritize resilience over efficiency.
| Aspect | Positive Impacts (Western Perspective) | Negative Impacts (Western Perspective) |
|---|---|---|
| Economic | Increased profits for MNCs, lower consumer prices, technological innovation | Job displacement, rising inequality, financial instability |
| Political | Spread of liberal democracy (initially), increased international cooperation | Rise of populism and nationalism, erosion of national sovereignty |
| Socio-Cultural | Cultural exchange, increased awareness of global issues | Cultural homogenization, backlash against immigration |
Conclusion
Globalization over the past 25 years has been a double-edged sword for the Western world. While it initially delivered economic benefits and fostered technological progress, it also created significant social and economic dislocations, fueling discontent and a backlash against its core tenets. The future of globalization will likely involve a recalibration, with a greater emphasis on resilience, fairness, and national interests, potentially leading to a more fragmented and regionalized global order. The West’s role will be to navigate this evolving landscape while addressing the legitimate concerns of its citizens.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.