Globalization of Capitalism and its Impacts
In today’s world, we have global terrorism, global alliances, global technologies and global multinational giants whose commercial interests lie in producing more of the same for as many people as possible. But this globalization has its good as well as dire impacts on the world’s political system. The world we see today is anarchic in nature to say the least. We have conflicts and disharmony all around the globe. The disparities between developed and developing countries are ever-increasing. The question that arises then is; are we moving in a positive direction?
The first world countries that are developed, have a democratic political system, and are technologically advanced and wealthy are now called Global North. Global south consists of countries once described as the second world and the third world. The second world countries believed in the common economic reforms and were influenced by the communism. The third world countries are underdeveloped and mostly have a colonial background. They don’t have proper democratic governments, lack technological progress and are dependant on the wealthy global north.
The end of the Cold War brought a new era of economic globalization, the era in which free trade and force of freedom was to be promoted. It was hoped that capitalism will help the third world countries to improve their economic conditions. The proponents
of capitalism argued that capitalism was based upon the human beings’ natural instinct of choice and freedom. According to them, the system that they were bringing into the world would not only benefit the rich countries but will also be a vital factor in improving the deteriorating economies of third world countries, because, according to capitalists, the system was based on justice. [Rand, Ayn] In many ways capitalism was beneficial in eliminating slavery, feudalism and racism among many other things.