There are several readings to the construct of globalisation, surely non because of the vague significance of the word and the vagueness of its purpose, but chiefly because its differing effects in different states and on different industries have been varied. The blunt world is that the construct of globalisation whilst holding a good conceived interpretation/definition, the reading applied to it is frequently times conditioned based on the position of the single associating the narrative. For illustration, advocates of globalisation systematically speak of and stress its benefits, whilst oppositions unflinchingly highlight what they regard as its ruinous effects. There is I might add, a 3rd group which interprets/defines globalisation as inconsequential non merely to the mean John Doe, but besides little developing states e.g. the islands of the Caribbean. This capable affair of its impact on little developing states and their ability to last will be addressed shortly.
For now nevertheless, I propose to proffer a normally accepted interpretation/definition to the construct of globalisation, simple put, it is refers to as a universe without boundary lines. In fact, really frequently footings such as ‘global small town ‘ and ‘cross boundary line linkages ‘ , are used synonymously if non interchangeable with the word globalisation. ‘Disintegrating national boundary lines, coupled with the liberalisation of trade and finance in today ‘s “ Global Village ” besides have fostered an addition in cross-border corporate amalgamations and the figure of transnational corporations ‘ .[ 1 ]In the decennaries of the recent yesteryear, there was a position that what was normally being referred to as globalisation and the construct of a ‘disintegrating national boundary lines ‘ was simple a reincarnation of the construct of Westernization.
However even if this was so, with the coming of the BRIC states ( Brazil, Russia, India and China ) and the phenomenal growing being experienced by the economic systems of these states, peculiarly India and China within the last several old ages, the impression of the two constructs ( globalisation and Westernization ) being one and the same, has been wholly disproved. In fact, if similarities are to be drawn between Westernization and globalisation the most outstanding commonalty between them would be that of laterality of the planetary market place, albeit at different times in history. The laterality of the planetary market place, as in the instance of China for illustration, has everything to make with their population size, measure of end product or measure exports, it attaches truth to the stating that ‘size does matter and excessively large is a plus ‘ . With globalisation profiting the larger states in Asia, Europe and the Americas – where does that go forth little developing states in this infinite now referred to as a individual market. In other words – Can little developing states survive in a globalized environment?
Define Small developing states:
In response to the inquiry, this writer proposes to utilize SIDS, that is, Small Island Developing States, of which the United Nation has identified 52 and of which all of the member provinces of Caricom are portion, to crystallise the point that ‘little fishes can last in large pools ‘ or in other words, that little developing states can last in a globalized environment. The illustrations I will progress to back up the statement will be two islands in this part, both with minute similarities and yet many stat mis of differences.
While there is no internationally established definition for little developing states or Small Island Developing States, this grouping does hold an internationally recognized individuality, which came about in 1992, as a consequence of the Alliance of Small Island States. These SIDS are identified based on specific standards or benchmarking done by international bureaus such as the United Nations and/or the World Trade Organization. The common yarn that exist between these states are among other things – Their little physical size, which in consequence means smaller domestic markets, smaller measures of end product an and smaller measures of exports. Their geographical locations, which may set them at a disadvantage from pulling for illustration foreign direct investings ( FDI ) . Their Oceanic formations, which mean that as a effect of them being islands, with the attendant H2O which environing them, there may be for illustration reef or other naturistic characteristics of the ocean, which must be environmentally protected. In add-on to the afore-stated challenges, little developing states besides have to postulate with high a grade of importing ; for illustration they may non be able to bring forth all that they consume as a state, a high grade of openness, that is, susceptibleness to being exploited to by larger states, thereby sometimes doing sustainable development a challenge and a grade of defencelessness against natural catastrophes. All of these common challenges experienced by SIDS contributes to their exposure and hence do them acutely susceptible to inauspicious external dazes.Notwithstanding the challenges faced by SIDS, Trinidad and Tobago, a little developing state nestled as the most southern of the states of the Americas and the Caribbean, has emerged as a premier illustration of how little developing states can last in a globalized environment.
An island of a mere one million three hundred thousand dwellers, bounded by one thousand nine hundred an 80 square stat mis of infinite, as far back as 1998 more than a decennary ago, was described by Larry Rohter of the New York Times as an ‘economic tiger in a sea of pussycats ‘ .[ 2 ]This remark came at a clip when the state ‘s Gross Domestic Product ( GDP ) , a major macroeconomic index was at $ 38,065.1 million United States ( U.
S. ) dollars, which by the way had literally doubled from 10 twelvemonth prior. Mr. Rohter ‘s observation/statement besides came at a clip when the state ‘s unemployment figure stood at 14.2 per centum compared with 22 per centum ten old ages prior and the direct foreign investing ( FDI ) attracted in that twelvemonth, 1998, was $ 4,596.3 million U.
S. dollars or four billion five 100s and 96 million Trinidad and Tobago dollars, That figure reflected an addition of over one thousand per centum when compared to the $ 241.8 million U.
S. F.D.I. realized in 1988. David E. Bloom and his composing co-workers in their Occasional Paper entitled -Globalization, Liberalization and Sustainable Human Development Progress and Challenges in Jamaica ; noted that ‘the addition in F.
D.I. aˆ¦ flows in 1998-99aˆ¦ lucifers the tendency aˆ¦ Jamaica ‘s public presentation has non been every bit impressive as that of Trinidad and Tobago ‘ .[ 3 ]Indeed Trinidad and Tobago ‘s motion towards globalisation involved several mild rocks over the old ages, among them the determination in the early 1990 ‘s to prosecute in trade liberalisation ; this efficaciously meant that importing limitations were dismantled ; and concomitantly determinations were taken to cut down the responsibilities to be charged on imported merchandises. These policy displacements were complemented by a determination to set up a natation or a more realistic rate of exchange against the U.S.
dollar.[ 4 ]Whilst the challenges faced by SIDS are undeniable, fact is, they are non unsurmountable. Individually or individually SIDS may non be able to meaningfully impact dialogues at establishments such as the World Trade Organization ( WTO ) , but there is a school of idea which suggest that jointly they may be able to exert more purchase taking into account their corporate market size or market portion. For illustration, Trinidad and Tobago even though little in size, is the universe ‘s 10th largest exporter of natural gas, i.
e. 21 billion three-dimensional metres or about two per centum of the estimated entire universe natural gas exports.[ 5 ]Translated into purchase, this means that Trinidad and Tobago through its chief market, the United States of Americas may buttonhole and obtain support for specific countries of involvement in trade dialogues.To farther supports the statement that little developing states, for illustration Trinidad and Tobago, can last in a globalized environment the macroeconomic index of this state ‘s trade balance will now be examined. In 1998, utilizing the twelvemonth that our economic system came in for particular reference, our trade balance reflected that entire exports were $ 983 million U.S. dollars and our imports stood at $ 977 million U.
S, that is, a excess of six million U.S. dollars. Relatively talking merely one decennary earlier we were recognizing a trade balance shortage of $ -393 million U.S dollars and although in this current decennary the excess has evaporated and we are recognizing shortages one time once more ( $ 3,191.8 million U.S dollars in 2009 ) , we have been doing serious efforts to change by reversal the shortage tendencies.[ 6 ]However, we are besides aware of the fact that with globalisation economic systems are no longer self-contained, but they are going more and more mutualist or more incorporate economic systems.
Thus the issue of trade is non one manner and trade understandings involves reciprocality, as such in our outlook and pursuit for extra markets we have besides become exposed to greater importing of more and more foreign goods and services. **Thomas Friedman ‘s, ‘The universe is Flat ‘ refers to engineering as the platform for globalisation. In his book, he advances that through the usage of engineering countries/businesses/industries can vie, connect and collaborate to guarantee economic integrating or internationalisation.
[ 7 ]Without a uncertainty engineering has been one of the vehicles through which the construct of globalisation has become a world. In fact, in the instance of Trinidad and Tobago, a little developing state, information engineering has helped to guarantee that our geographical location does non set us at a disadvantage. It is to the recognition of information engineering that investors and possible investors can interface with us from any portion of the universe and thereby do informed determinations as to investing chances in this state ; in short engineering has helped to progress our fight. In add-on to this, we on the other manus, in our command to beginning new markets have non been constrained by linguistic communication barriers or clip zones differences ; that is because information engineering has helped to bridge those divides. But what of the disadvantages the anti-globalization motion may foreground.
Disadvantages such as the negative impact that globalisation may hold on the environment, its negative impact on employment because of greater mechanization and low rewards, or even their concern about switching economic power, for illustration from the West to Asia with specific mention to China, who in the position of many still has non embraced democracy. While its perceived or possible disadvantages ought non to be simple dismissed, in the instance of Trinidad and Tobago globalisation has positively impacted our local economic system. The Central Statistical Office ‘s figures for the 4th one-fourth of 2007 revealed that this state had achieved full employment ; this is evidently attributable to several factors, among them – The big figure foreign direct investings being attracted by this country- The big figure of markets that we have established outside this state, for goods and services produced inside our boundary lines – And our inventiveness in making new industries, illustration the bungalow, the music, the theater industry etc. )The 2nd SID/Caricom state I propose to utilize to farther my position point that little developing states can last in a globalized environment is our neighbours on the north eastern of us, Barbados.
An island of about two hundred and 80 thousand people and a land mass with an country of one hundred and 66 square stat mis, encircled chiefly by oceanic formations ( coral reefs ) , this island unlike Trinidad and Tobago has no natural resources, but like Trinidad and Tobago is a planetary participant among many. Thus the ground for my earlier analogy that ‘both islands have minute similarities and yet many stat mis of differences ‘ . Barbados ‘ economic system is based chiefly on the niche market which they have and which they now about perfected, their merchandise being a tourer finish. In other words, they have marketed their sand, sea, Sun in a manner that makes them peculiarly attractive to Americans, Canadians, Europeans and Caribbeaners seeking down clip. Their GDP for fiscal twelvemonth ended 2007, stood at $ 5,313 million U.
S. dollars and per capita for the said twelvemonth, it stood at $ 18,800 dollars. As a little state they can tout of an impressive sixty-seventy topographic point GDP per capita ranking, good in front of states such as Turkey, Malaysia and BRIC states such Brazil, Russia, India and China. In add-on to this, they are a mere 10 points behind Trinidad and Tobago ‘s ranking, which in 2007 had a GDP per capita of $ 21,200.00 dollars. Barbados ‘ employment statistics for 2007 whilst high by Trinidad and Tobago criterions, 10 % compared to 5.0 % , was significantly lower those states such as India and Turkey. Furthermore, in the 2010-2011 World Economic Forum Report on Global Competitiveness, the writer state us that Barbados topped the Caribbean Island by puting 43rd among one hundred and 39 states in its fight.
Trinidad and Tobago and Jamaica besides little developing states of Caribbean placed a distant second and 3rd coming in at Numberss 84 and 95 severally.[ 8 ]Thomas Friedman holding identified engineering as the platform for globalisation referred to education as one of its pillars, and so it was manner back in the 1980 ‘s when Barbados began its motion towards ‘education from baby’s room to tertiary ‘ . This efficaciously ensured a system of free instruction entree to all citizens of the state. Today several decennaries subsequently, in this globalized environment, the state is harvesting the wagess of its instruction thrust and determination, because it is a deemed by those in the know, as a planetary participant. Trinidad and Tobago, while get downing its ‘nursery to tertiary ‘ drive some clip subsequently i.
e. the mid 1990 ‘s, it has made successful paces and every bit indicated before is good recognized for its worth in the planetary environment.There is no uncertainty that size has its deductions and in the context of a state those deductions may be disadvantageous, acknowledging this state of affairs the issue was raised at the degree of the World Trade Organization and this lead to the Doha Ministerial Declaration 2001.
However, since that clip really small has been done on the capable affair and it is just to state that even thought planetary establishments such as the WTO, who has responsible of patroling and modulating trade in the planetary marked, makes opinions such as between Antigua Barbuda and the United States of America, development of countries/industries and single continue. This is even more apparent when trade understandings between developed and Least Developed Countries ( LDC ) are examined. The Barbados Programme of Action sought to reason that SIDS should be treated as particular instance for sustainable development, but to day of the month neither the larger developing nor the developed states have taken any sustained disciplinary action to give consequence to the rule of BPOA.
In the face of this SIDS continue to see challenges from and as a consequence of their many international committednesss for illustration their duties to the I.M.F and the World Bank.In decision, the grounds as to the continued being or endurance of little developing states in a globalized environment is irrefutable.
In my respectful position the illustrations of Trinidad and Tobago and Barbados are peculiarly relevant and improbably obliging. It is a fact that the impression of globalisation requires governments/regulators in little developing states to be extremist vigilant, guaranting that they engage the best heads to hammer out the best trade understandings possible. A state ‘s attraction to investors and their overarching competitory border must be supported, by among other things- the being of the technological platform which as stated by Freidman is the drift for globalisation or a licence to be a participant in the planetary market. All of the pillars for this platform must be present and operating in sync to make the best result for the state as a whole.
The pillar of instruction must be strategic, long-run an unbending ; the pillar of substructure, though a hard chance for developing states, must be calculated, digesting, and logical and the pillar of good administration must be democratically oriented, people centered and answerability driven. Whilst in the instance of both Trinidad and Tobago and Barbados we have non scored full Markss on an absolute of all of pillars I meekly proffer that among all of the little developing states in the part our two islands are the closest to accomplishing that aim and therein lies our attraction and competitory border.