Globalization and the Political Community


Globalization is the mechanism through which local societies, cultures, or economies become integrated worldwide through communication in business. Various factors control globalization. They can be grouped into; economic, political, socio-cultural, biological, or technological. Several international institutions have been founded to oversee the process of globalization. The International Monetary Fund (IMF) and the World Bank are examples of such institutions. Some politicians take globalization to mean the abolition of national boundaries to form a world government that would effectively control the activities that smaller governments engage in. Globalization has greatly affected the political community. However, certain actions by a number of some politicians in some states have been criticized by social groups and economists due to the stand they have taken on the issue of globalization.

Main Argument

While exploring the issue of globalization, there is a dire need to exhaustively assess its effect on the political community. In this case, the views of Michel Chossudovsky acts as the guiding light to a better understanding of the whole issue of globalization and the political connection. Chossudovsky attacks the New World Order imposed by international institutions such as the World Bank, the World Trade Organization (WTO), and the International Monetary Funds. Economic reforms according to him are very harmful, especially in poor countries. Rich countries exploit their poor counterparts in the name of globalization. The environment is destroyed through globalization leading to more problems than was the case previously. He has also criticized the free market system by the WTO arguing that its effects are more negative to many individuals than the market that existed before.

The wealthy states destroy the domestic economy and take state property and land belonging to small and poor states. Any markets that emerge are created on behalf of these wealthy nations. The rules that are set favor wealthy states while oppressing poor states. The powerful and wealthy nations have control over the media and governments meaning that globalization might continue oppressing poor states. Politically, globalization has led to an economic system that is controlled by the powerful. The powerful also own structures and possess most of the income and wealth. If something is not done, Chossudovsky reckons that income will continue being concentrated in certain places in the world. Globalization will not achieve its intended goal but will lead to the poor countries becoming even poorer.

Effects of Globalization on Political Community

There are very many political issues that have arisen as a result of globalization. All the issues come as a result of the effects of globalization on different countries especially the poor ones (Mott 29). Chossudovsky in his work on globalization of poverty and the new world order criticizes the moves taken by international institutions in the name of globalization.

The New World Order

Chossudovsky criticizes the move to form a one-world government that controls all other economies as destructive to poor economies. The World Bank, International Monetary Funds, and the World Trade Organization came up with reforms that are supposed to be enforced on countries. The reforms according to Chossudovsky are more distressing than the genocides. The powerful countries come up with reforms that will benefit them at the expense of the poor countries (Holden 27). The reforms lead to the destruction of the natural environment in these poor countries leading to increased poverty. At the end of it all, the poor countries will not be able to sustain themselves and have to rely on these giants. The policies are used to set markets to favor powerful states. Wherever a market is set, it is set because the powerful states have an interest in that region and not because they want individuals in the region to benefit. For example, the duty-free beef and daily products in Somalia affected the pastoralists in Somalia while the powerful who bought them enjoyed lower prices.

This way, the individuals from the powerful states save some money leading to more prosperity while the pastoralists continue selling the products at cheaper prices. On the other hand, commodities from these states go at higher prices. An individual from a poor country has to sell so much of his or her products to afford commodities from the powerful countries. The land belonging to the poor countries is taken by the powerful countries for the production of low materials. The individuals from the powerful states possess large estates where individuals from the poor countries work. The payment that the individuals from the poor countries receive in these estates is so low that they cannot afford to sustain themselves. The raw materials produced are exported or used to prepare final products in these states. The finished goods come at very high costs. These are prices that are very high compared to the prices of raw materials that are purchased from individuals in poor countries. A good example is Peru where the price of bread went up by over twelve times after liberalization. The geopolitical and social consequences of such incidents lead to crises between the involved states (Nimmo 84). The restructuring of the agricultural system in Rwanda led to genocide. The move to try and form one government is very harmful, especially to the poor states.

The Free Market System

According to Chossudovsky, the free market system is rigged (Chossudovsky 14). The agreements by the World Trade Organization are very oppressive to the poor states. The powerful nations that are financially stable and industrialized are given extraordinary rights. They control the markets and make it very hard for national governments to control their economies. Individuals from poor countries experience more poverty as a result of globalization. In some cases, products from individuals from the poor states are termed as below standard and are bought at low prices or disposed. Individuals are displaced and left to suffer when the powerful states decide to start projects in a poor country.

The powerful have the right to decide the best locations for investments and the authorities in the states are below them according to the international institutions. The markets are also planted in areas where the powerful are sure that they will benefit. At the end of the day, the market system oppresses the individuals in the poor countries when those in wealthy and industrialized countries enjoy resources from the poor countries. The third world countries are charged with the responsibility of producing cheap raw materials whose final products are very high especially if they are produced by wealthy nations. The market system is therefore designed to favor wealthy nations at the expense of poor nations.

Marginalization of Third World Countries

Globalization can be seen as a way of marginalizing third-world countries (Zeskind 37). Globalization universalizes communication, market exchanges, mass production, and redistributions. The poor states are not encouraged to come up with new ideas but are required to apply the systems that the developed countries have come up with. The introduction of globalization that is supposed to help all economies increase revenue has led to an intense increment in the burden of debts that these developing countries own. The imported products make the prices of those that are produced locally lose the market. The third world countries are therefore marginalized by globalization.

Programs by International Monetary Funds

The programs by IMF enforce governments to sacrifice big chunks of their national economy and make them private (Chossudovsky 17). Governments are also supposed to liberalize their markets and make social provisions. This has a negative effect on those who live in poor countries. Liberalization of markets leads to an advantage to the developed and wealthy countries. Downsizing social provisions such as health, education, and social security is a disadvantage to developing countries. The IMF also allows powerful states to manipulate and control global wealth. They manipulate currency and commodity markets. This way, they ensure that the prices of commodities from their states sell at high prices while those belonging to poor states sell at very low prices in the markets. These programs oppress the poor countries leading to crisis.

Effects on Economic System and Income and wealth distribution

Globalization has a negative effect on the economic system and wealth distribution. To begin with, the economic system is dominated by a few superpowers such as the United States and the United Kingdom. These are also the states that own major structures all over the world. They can own them because the international organizations are dominated by their membership and their economic power. Globalization also leads to the centralization of income and wealth in a few states. These are the very states that are already developed and industrialized. The poor countries will continue being poor due to exploitation by the wealthy states.

Globalization and Financial Institutions

Globalization has led to new banking technologies that have spurred the fight of profits to offshore banking havens. The largest banking centers are located in developed countries and they continue to grow due to the markets that are located in these states. The central banks that serve as the banks for the international markets have gone through numerous modifications to meet the demands of financial markets. This affects national banks in that cannot be used by individuals participating in international markets (Hall 43). The powerful financial actors can manipulate interest rates and also precipitate the decline of major currencies. This way, the value of currencies in the third world countries keeps on deteriorating as the value for major currencies.

Supply of Money and Globalization

According to Chossudovsky, the supply of money is in the hands of private creditors (Chossudovsky 25). Bearing in mind that the supply of money is the one that regulates the mobilization of material and human resources, the creditors have total control of the market. The actions and the way they release and spend money can paralyze the entire economy. Recently, politicians are now acquiring a financial stake in the business field. This may lead to a complete death of the national economy which is very difficult to reform.


Globalization is defined as the process by which regional economies, societies, and cultures get integrated through trade and communication. Institutions such as the International Monetary Fund (IMF) and the World Bank have been formed to oversee the process of globalization. The world Trade Organization (WTO) has also been in the system to regulate the process. Globalization has many negative effects on the political community. Poor countries have been exploited by wealthy countries in the name of globalization. The reforms outlined by World Bank, International Monetary Funds, and the World Trade Organization in the New World Order are very oppressing, especially to the poor countries. All countries are supposed to follow the reforms which are enacted by the wealthy states. The agreements by the World Trade Organization on the free market system are very oppressive to poor countries.

The powerful nations control the markets and make it very hard for national governments to control their economies. Globalization leads to the marginalization of third-world countries in that it universalizes communication, market exchanges, mass production, and redistributions. Programs by IMF enforce governments to sacrifice big chunks of their national economy and make them private. Governments are also supposed to liberalize their markets and make social provisions. Globalization leads to an economic system that is dominated by wealthy countries. Income is also distributed amongst the few powerful nations. Globalization has led to new banking technologies that have negatively affected national banks. Globalization has also led to a supply of money that is in the hands of a few creditors giving them the capacity to paralyze the entire economy.

Works Cited

Chossudovsky, Michel. The Globalization of Poverty and the New World Order. New York: McGraw-Hill, 2003. Print.

Hall, Stuart. Modernity: An Introduction to Modern Society. New York: the Open University, 1996. Print.

Higgot, Richard. A. and Payne, Anthony. The New Political Economy of globalization, volume 1. UK: Edward, Elgar Publishing Limited, 2009. Print.

Holden, Barry. Global Democracy: Key Debates. London: Routledge Publishers, 2000. Print.

Mott, William. Globalization: People, Perspectives, and Progress. Westport: Praeger Publisher, 2004. Print.

Nimmo, Kurt and Hannity, Morris. Agree with “Conspiracy People” About New World Order. 2009. Web.

Zeskind, Leonard. Blood and Politics: The History of the White Nationalist Movement from the Margins to the Mainstream. Farrar: Straus and Giroux, 2009. Print.

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