Globalization: Drivers, Impacts, and Paradoxes

Drivers of Globalization

1. Trade and Transactions

The rise of free trade agreements and the elimination of barriers like tariffs have fueled global trade. The mutual recognition market ensures the acceptance of goods across borders, leading to increased cross-border trade, manufactured goods, and multinational corporations.

2. Capital and Investments

Foreign investment has shifted significantly, with a decrease from 65% of the world's GDP in 1991 to 30% in 2006. There's a growing trend of investments in developing countries like those in Africa. For example, Santander generates 25% of its business in Brazil.

3. Migration

Global migration has seen a dramatic increase from 78 million people in 1975 to 2 billion in 2005. Migrant remittances play a crucial role in the economies of countries that rely heavily on exporting labor rather than products.

4. Spreading of Knowledge and Technology

The IT revolution, the internet, television, and even the jet engine's impact on tourism have accelerated the spread of knowledge and technology. The proliferation of mobile phones surpasses the global population. Beyond communication, investments in space exploration also contribute to this trend.

Causes and Speeding of Globalization

• Technological innovation and change
• Political innovation with gender equality, freedom, and democracy
• Changes in economic policies that support trade liberalization and the resurgence of economic liberalism

Paradoxes of Contemporary Globalization

Economic Paradoxes

• Increased competition leading to decreased prices and salaries, contributing to inequality and poverty
• The rise of national inequality alongside global convergence, resulting in a higher number of poor countries compared to rich countries

Political Paradoxes

• Forces beyond government control, diminishing individual autonomy
• Undermining democracy and the emergence of new political movements, such as environmentalism, prompting powerful nations to seek cooperation to address global issues

Social/Cultural Paradoxes

• General improvement in societal equality and quality of life
• Heightened environmental concerns and the complex question of immigrant belonging
• A false sense of security in nationalistic movements, like in Catalonia