2005•Journal of international business researchRequires access

Globalization and Democracy: A General Discussion

Nader Asgary

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Abstract

ABSTRACT The question of whether or not globalization promotes democracy represents a longstanding debate. There are numerous arguments that can be made to endorse the idea that globalization promotes democracy. First, the technological innovations that arrive with globalization bring with them advances in communication that enable citizens to pass along information more freely, and this in turn helps to educate a society. Also, globalization helps the professional and middle classes grow. These two groups, in turn, assist the process of democratization. It is also possible to argue against the theory that globalization promotes democracy. Many times due to globalization, authoritarian governments' control is prolonged by the economic prosperity that is experienced. The citizens associate the booming economy with the current form of government. At times during globalization, foreign companies will set up a manufacturing plant in another country. Soon that country's economy will experience a period of prosperity but will then become reliant upon that one plant. If that company decides to close the plant, the country's economy will be destroyed. Another argument against the theory that globalization promotes democracy is that it creates a large gap between the wealthy and the poor. These arguments bring to light some concerns for a manager dealing in international business today. Profits cannot be a manager's only concern, especially when doing business with or in a foreign country. Companies must realize that when they are dealing with foreign companies, they are not only representing their company but also their country. It is of the utmost importance that the welfare of the community, its individuals, and the environment are taken into account. INTRODUCTION A number of factors impact the extent to which globalization does or does not promote democracy. The term globalization has existed for quite some time but has only become a popular buzzword in recent years. This is due in part to the economic and political changes that took place after the Cold War. The factors include--but are not limited to--interdependence, cultural, legal, political and economic alignments, and economic opportunities and competition. International disciplines are not a current phenomenon but rather a means for understanding our global society and the process of globalization. It has been debated whether globalization drives democracy, and critics have argued for both sides of the issue. Globalization is best thought of as a multi-dimensional phenomenon involving diverse domains of activity and interaction including economic, political, technological, military, legal, cultural, and environmental (Held, 1997, 16). While the above is a basic definition of globalization, in actuality it is too complex to be summed up in a single sentence. Additionally, the significance of globalization differs for individuals, groups and countries (Held, 1997). This means that depending on which country you are dealing with, globalization can be more or less of a factor. For instance, among the cultural elites of the world, globalization is more of an influential factor when compared to a developing country. This is not to say that countries like Sudan and Ethiopia are unaffected by globalization, they just usually seem to have less of a stronghold on the actual forces involved. In other words, these countries are still influenced by globalization but often cannot control the forces (Held, 1997). Democracy according to the contemporary definition is generally a type of government that relies on elected representatives and tends to draw a distinction between the public and private spheres (Walt, 2000, 38). Additionally, a number of elements seem to be common to all those societies that are known as democracies. These elements include elections, competition for public support, and the governing bodies' accountability to the people (Walt, 2000). …

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ABSTRACT The question of whether or not globalization promotes democracy represents a longstanding debate. There are numerous arguments that can be made to endorse the idea that globalization promotes democracy. First, the technological innovations that arrive with globalization bring with them advances in communication that enable citizens to pass along information more freely, and this in turn helps to educate a society. Also, globalization helps the professional and middle classes grow. These two groups, in turn, assist the process of democratization. It is also possible to argue against the theory that globalization promotes democracy. Many times due to globalization, authoritarian governments' control is prolonged by the economic prosperity that is experienced. The citizens associate the booming economy with the current form of government. At times during globalization, foreign companies will set up a manufacturing plant in another country. Soon that country's economy will experience a period of prosperity but will then become reliant upon that one plant. If that company decides to close the plant, the country's economy will be destroyed. Another argument against the theory that globalization promotes democracy is that it creates a large gap between the wealthy and the poor. These arguments bring to light some concerns for a manager dealing in international business today. Profits cannot be a manager's only concern, especially when doing business with or in a foreign country. Companies must realize that when they are dealing with foreign companies, they are not only representing their company but also their country. It is of the utmost importance that the welfare of the community, its individuals, and the environment are taken into account. INTRODUCTION A number of factors impact the extent to which globalization does or does not promote democracy. The term globalization has existed for quite some time but has only become a popular buzzword in recent years. This is due in part to the economic and political changes that took place after the Cold War. The factors include--but are not limited to--interdependence, cultural, legal, political and economic alignments, and economic opportunities and competition. International disciplines are not a current phenomenon but rather a means for understanding our global society and the process of globalization. It has been debated whether globalization drives democracy, and critics have argued for both sides of the issue. Globalization is best thought of as a multi-dimensional phenomenon involving diverse domains of activity and interaction including economic, political, technological, military, legal, cultural, and environmental (Held, 1997, 16). While the above is a basic definition of globalization, in actuality it is too complex to be summed up in a single sentence. Additionally, the significance of globalization differs for individuals, groups and countries (Held, 1997). This means that depending on which country you are dealing with, globalization can be more or less of a factor. For instance, among the cultural elites of the world, globalization is more of an influential factor when compared to a developing country. This is not to say that countries like Sudan and Ethiopia are unaffected by globalization, they just usually seem to have less of a stronghold on the actual forces involved. In other words, these countries are still influenced by globalization but often cannot control the forces (Held, 1997). Democracy according to the contemporary definition is generally a type of government that relies on elected representatives and tends to draw a distinction between the public and private spheres (Walt, 2000, 38). Additionally, a number of elements seem to be common to all those societies that are known as democracies. These elements include elections, competition for public support, and the governing bodies' accountability to the people (Walt, 2000). …

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ABSTRACT The question of whether or not globalization promotes democracy represents a longstanding debate. There are numerous arguments that can be made to endorse the idea that globalization promotes democracy. First, the technological innovations that arrive with globalization bring with them advances in communication that enable citizens to pass along information more freely, and this in turn helps to educate a society. Also, globalization helps the professional and middle classes grow. These two groups, in turn, assist the process of democratization. It is also possible to argue against the theory that globalization promotes democracy. Many times due to globalization, authoritarian governments' control is prolonged by the economic prosperity that is experienced. The citizens associate the booming economy with the current form of government. At times during globalization, foreign companies will set up a manufacturing plant in another country. Soon that country's economy will experience a period of prosperity but will then become reliant upon that one plant. If that company decides to close the plant, the country's economy will be destroyed. Another argument against the theory that globalization promotes democracy is that it creates a large gap between the wealthy and the poor. These arguments bring to light some concerns for a manager dealing in international business today. Profits cannot be a manager's only concern, especially when doing business with or in a foreign country. Companies must realize that when they are dealing with foreign companies, they are not only representing their company but also their country. It is of the utmost importance that the welfare of the community, its individuals, and the environment are taken into account. INTRODUCTION A number of factors impact the extent to which globalization does or does not promote democracy. The term globalization has existed for quite some time but has only become a popular buzzword in recent years. This is due in part to the economic and political changes that took place after the Cold War. The factors include--but are not limited to--interdependence, cultural, legal, political and economic alignments, and economic opportunities and competition. International disciplines are not a current phenomenon but rather a means for understanding our global society and the process of globalization. It has been debated whether globalization drives democracy, and critics have argued for both sides of the issue. Globalization is best thought of as a multi-dimensional phenomenon involving diverse domains of activity and interaction including economic, political, technological, military, legal, cultural, and environmental (Held, 1997, 16). While the above is a basic definition of globalization, in actuality it is too complex to be summed up in a single sentence. Additionally, the significance of globalization differs for individuals, groups and countries (Held, 1997). This means that depending on which country you are dealing with, globalization can be more or less of a factor. For instance, among the cultural elites of the world, globalization is more of an influential factor when compared to a developing country. This is not to say that countries like Sudan and Ethiopia are unaffected by globalization, they just usually seem to have less of a stronghold on the actual forces involved. In other words, these countries are still influenced by globalization but often cannot control the forces (Held, 1997). Democracy according to the contemporary definition is generally a type of government that relies on elected representatives and tends to draw a distinction between the public and private spheres (Walt, 2000, 38). Additionally, a number of elements seem to be common to all those societies that are known as democracies. These elements include elections, competition for public support, and the governing bodies' accountability to the people (Walt, 2000). …

Key concepts: Globalization, Prosperity, Democracy, Democratization, Political economy, Economics, Government (linguistics), Economic system

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