Recommendation Section
The modern global economy seems to be riven by numerous contradictions. The steady growth experienced in the world is characterized by investments and technology and expanded market for goods and services. Essentially, the growth as lifted many people out of poverty. However, a significant number of people still live in abject poverty. The current discussions over exclusion and inequality demonstrate that while the wealthy are taking full advantage of the global economy, the majority are still experiencing scant returns. Governments across the globe need to embrace practical options to mitigate the challenges that come with globalization. Essentially, the recommendation for fairer practices and rules, combined with active actions at national, regional, and local levels will help to attain visions for globalization for all (Ostry, Prati, & Spilimbergo, 2009). Without addressing current issues, many countries, especially developing countries will not be able to thrive in the global economy. Sustainable actions are needed to ensure that opportunities and gains are fairly distributed and common goals are attained. The recommendations may be implemented at a national and international level.
The first recommendation involves adopting certain microeconomic policies. By offering better education, career training, apprenticeships, and flexible labour markets, policymakers in developed nations can assist their societies to embrace pressures of technological advance and globalization. Moreover, education is likely to have a catalytic influence on the developing countries, particularly where women are given equal chances to men. The governments of developing economies also need to provide the necessary institutional and physical infrastructure to assist unlock growth (Yeates,2001). Providing necessary infrastructure does not only entail construction of roads, ports, and railways, but also implementing rule of law, deal with corruptions, and eradicate economically distorting subsidies on staple food.
Secondly, investment in technological advancement opens numerous opportunities for sustainable growth. In developed economies, modern manufacturing technologies are leading to an “onshoring” of jobs since the manufacturers deliver customized goods fast while maintaining their inventory levels at the minimum. The new technology can be used to replace the centralized energy infrastructure with less rigid distributed systems that reduce costs while minimizing the emission of carbon to the atmosphere. Besides, technological innovation is capable of reducing health cost for the ageing population through self-diagnosis and treatment. In the developing nations, technology provides societies with an opportunity to advance expensive conventional energy, medical and communication, and educational infrastructures. Additionally, it help to deliver government services at reduced costs will less corruption. If used effectively, it can help to deal with the massive migration of individuals to the metropolitan areas. To draw the full benefits of globalization, governments need to collaborate. With the growing protectionist perspective of a populist political movement that criticizes the benefits of globalization, policymakers need to collaborate their economic practices and policies at various level in a manner that reflects the economic interdependence of countries (Halonen,2006). Fundamentally, regional institutions from the European Union (EU) to the Association of Southeast Asian Nations (ASEAN) are critical elements in this process since they can help the government to reduce the barriers and coordinate standards within a cultural context that will be less troublesome than multifaceted initiatives.
Third, nations should focus on sustainable development in the context of globalization. One way of attaining sustainable development is by reducing absolute poverty. Absolute poverty is mainly concentrated in developing economies and has various dimensions beyond income including vulnerability, empowerment, and access to education, shelter, health, sanitation, and clean water. All the factors affect both the present and the future functioning of a person. The effects of absolute poverty last for a long period. For instance, it may impair the development of children who are affected by inadequate education and malnutrition. Even though poverty may be geographically concentrated, its consequences may have global repercussions via humanitarian crises, conflicts, and migration (Halonen,2006). Consequently, the eradication of absolute poverty is both a global and domestic responsibility. Reduction of poverty can be done by implementing certain actions. First, coherent policies in trade, technology transfer, investment, capacity building, and intellectual property must be implemented.
There is also a need for better social protection supported by international solidarity and action. In a competitive global economy, there is a larger vulnerability to an abrupt change in protected national markets. Globalization creates a need for regular adjustments to national production practices and process hence to jobs and lifestyles of men and women. As a result, governments need to implement public interventions to support the redesigning of production systems as well as the creation of new opportunities. Essentially, systems of social protection are needed to stabilize incomes and distribute the benefits of globalization to all groups that would otherwise be excluded. Approximately 80 per cent of the world’s households have little or no social protection. In many societies, both developing and industrialized, social protections are facing financial strain because of the structural adjustments programs, national budgetary restrictions, and slow growth (Halonen,2006). To attain the full benefits of globalization, international action is crucial. In other words, there is an increased need for regional and international donors to contribute to the development of national social protection systems in developing countries as well as invest in economic restructuring which is important in facilitating equitable distribution of gains for globalization. Additionally, attaining process in this area will need the establishment of international solidarity.
Increased unemployment is one of the issues associated with globalization. To overcome this challenge, international organizations and governments should implement coordinated macroeconomic policies that support full employment. Market liberalization should be accompanied by active policies for worldwide macroeconomic management to ensure that international growth is more stable and high. There is a need to implement an effective mechanism to attain orderly adjustments to persistent payment surpluses and deficit as well as a balanced distribution of responsibilities (Ostry, Prati, & Spilimbergo,2009). All countries, both developed and developing have an obligation to adopt responsible and fair trading policies. Promotion of full and productive employment may also involve looking into other factors including work conditions, social security, gender equality, social dialogue, and safety at work.
One of the striking features of globalization is the emergence of civil society organizations whose function is to deal with issues concerning citizens throughout the world. To enhance the functionality of civil society organizations, they should be transparent and accountable to the stakeholders. There are many organizations in civil society including NGOs, people’s movement, and non-profit organizations all representing the civil groups (Halonen, 2006). It is, therefore, crucial to acknowledge the differences when resolving the issues of accountability and representativeness. The step to resolve the accountability of civil society organizations should no obstruct the legal rights of citizens to voice opinions and issues in public interests. By implementing these recommendations, globalization will bring the fair distribution of opportunities and benefits to all economies.
References
Halonen, H. (2006). Fair globalization. Journal of Globalization, 250-253.
Ostry, J., Prati, A., & Spilimbergo, A. (2009). Structural reforms and economic performance in advanced and developing countries. Occasional Papers.
Yeates, N. (2001). Globalization and social policy. New York: SAGE.