1 2 Read the Case Study below carefully and answer the questions that follow: GLOBALIZATION: CULTURE AND SOCIETY The word "globalization" has been widely promulgated to refer to aspects of development mostly from an economic perspective; to describe the increasing flow across borders of labor, capital, goods and services, and the formation of international production networks as represented in multinational enterprises, for example. Since the 1990s, however, the term has been picked up by scholars from a wide variety of disciplines, such as sociology, political science, anthropology and cultural studies. Its use is no longer limited to economics and the term has spurred debate in various areas of study. This point of debate can actually be wide-ranging in reach. By way of example, if we look at the table of contents in Global Sociology (Cohen and Kennedy 2000), which is regarded a textbook on globalization, the following chapter headings appear: Modernity; The Changing World of Work; Nation States; Global Inequalities: Gender, Race and Class; TNCs, Uneven Development; Failures of Global Control; Asia Pacific; Population Pressures and Migration; Tourism; Consuming Culture; Media and Communication; Urban Life; Social Movements; Challenges to a Gendered World; The Green Movement; and Identities and Belonging. These chapters might surprise those whose specialties are not in sociology. Here, we find that the word “globalization” is not used in a limited sense to refer to a particular matter (e.g. “the globalization of finance”). Common views among those who take a sociological stance are: “All the dimensions of globalization - economic, technological, political, social and cultural - appear to be coming together at the same time, each reinforcing and magnifying the impact of the others” (Cohen and Kennedy); and “globalization is best thought of as a multidimensional set of social processes that resists being confined to any single thematic framework” (Steger 2005). The focal point here, then, is that as opposed to a specific phenomenon that can be differentiated from another, globalization is the comprehensive transformational process itself, which is complex in its progression in the modern world. In this sense, globalization in sociology strongly possesses the character of broader questioning from a critical standpoint, regarding the issue, "What kind of period is this modern age?" 3 How can regional studies focused on developing countries be linked to knowledge from globalization studies? As demonstrated by the use of the term “McDonaldization” as a keyword in explaining globalization, it is sometimes pointed out to culturally homogenize the world and to be a process that creates a flat plane, free of obstructions, for the capitalism of leading developed countries. If we adopt this perspective, the history of developing countries will likely be portrayed as a process of being “hit by the wave of globalization.” In fact, it is often submitted that globalization has brought about problems in developing countries such as poverty, and this can be said to be the dominant viewpoint today. On the other hand, there also some who submit that with globalization, the processes of "homogenization and heterogenization" occur at the same time. This approach provides a more critical lead in terms of investigating the dynamic nature of developing countries. From the political and economic spheres (market economy, small government, democratization) to consumer culture (software such as music and movies, products and food culture introduced by multinational agribusinesses, mobile phones), this flow of events that can be observed practically anywhere in the world is entering developing countries. In reality, however, how politics, economics and daily living function in developing countries and what people think about these issues are not level across the world in any way. Instead, transformations are often underway that have never been seen elsewhere before, a result of stimulation from newly introduced flow processes. (Democracy is a typical example of this, in that while countries implement the same system of representative democracy, there is great variation in how democracy functions in the different countries.) For regional studies focusing on developing countries, it is a valuable frame of reference to focus on the unique and peculiar things that emerge through close links with the rest of the world, rather than those that emerge from being separate from it. It is likely that using this perspective, regional studies looking into the peculiarities of different countries will be able to break the mold of narrow, one-country research and present wider findings. 4 Required; a) From the case study above, discuss five elements of development economics Natural Resources Natural resources are one of the three main factors of production the other two are labor and capital. Natural resources include area of land, forests, rivers, climate and mines. If a country is rich in better quality of all natural resources, it will develop economically at a fast speed. Capital Formation It is the process of adding net physical capital stock of an economy. Capital formation creates productive potential for future production. Capital formation has three stages namely • Savings Financial institutions and capital market for mobilization of savings Act of investment in machinery and buildings. Specialization Output is greater as a result of specialization. Specialization enables an economy to use its scarce resources more efficiently, thereby producing larger volume of goods and services. It increases the rate of economic development of a country. Technology Inventions and innovations reduce manufacturing and distribution costs. Technological progress serves to change cost conditions in the long run; thus technological changes play an important role in the economic development. Transport and Communication Efficient communication facilities increase the production capacity of all sectors of the economy. It reduces cost of production, increases mobility of goods within and outside the country. 5 b) As discussed above, discuss five (5) factors that contribute to economic growth in a country Natural Resources. The discovery of more natural resources like oil, or mineral deposits may boost economic growth as this shifts or increases the country’s Production Possibility Curve. Other resources include land, water, forests and natural gas. Realistically, it is difficult, if not impossible, to increase the number of natural resources in a country. Countries must take care to balance the supply and demand for scarce natural resources to avoid depleting them. Improved land management may improve the quality of land and contribute to economic growth. Physical Capital or Infrastructure Increased investment in physical capital, such as factories, machinery, and roads, will lower the cost of economic activity. Better factories and machinery are more productive than physical labor. This higher productivity can increase output. For example, having a robust highway system can reduce inefficiencies in moving raw materials or goods across the country, which can increase its GDP. Technology Another influential factor is the improvement of technology. The technology could increase productivity with the same levels of labor, thus accelerating growth and development. This increment means factories can be more productive at lower costs. Technology is most likely to lead to sustained long-run growth. Population or Labor A growing population means there is an increase in the availability of workers or employees, which means a higher workforce. One downside of having a large population is that it could lead to high unemployment. 6 Human Capital An increase in investment in human capital can improve the quality of the labor force. This increase in quality would result in an improvement in skills, abilities, and training. A skilled labor force has a significant effect on growth since skilled workers are more productive. For example, investing in STEM students or subsidizing coding academies would increase the availability of workers for higher-skilled jobs that pay more than investing in blue-collar jobs. c) State five indicators of underdevelopment as described in the case study above Unexploited Natural Resources: For maintaining a rapid pace of economic growth in these underdeveloped countries, possession of different types of natural resources in sufficient quantity and its utilization are very important. But under-developed countries are either suffering from scarcity of raw materials or from un-exploited natural resources of its own. If we look at the endowment position of these countries then we can see that some of the underdeveloped countries are having natural resources like land, water, minerals, forest etc. in sufficient quantity but these resources remain largely under-utilized or even untapped due to various difficulties faced by these countries. These difficulties include inaccessibility of the region, shortage of capital, lack of proper attention, primitive technology, transport bottlenecks and small extent of the market. Thus by utilizing its natural resources, underdeveloped countries can develop their economies with minimum initiative of their own. Lack of Infrastructural Development: Lack of infrastructural development is a common feature of underdevelopment. In respect of transportation, communication, generation and distribution of electricity, credit facilities, social overheads etc. these undeveloped countries are very much backward than most of the developed countries. Thus due to inadequate infrastructural facilities, the pace of economic development in these countries are very slow. Lack of Industrialization: 7 Underdeveloped countries are characterized by lack of industrial development. The pace of industrialization in these countries is very slow due to lack of capital formation, paucity in the supply of machinery and tools and also due to lack of initiative and enterprise on the part of people of these countries. Mass Illiteracy: Mass illiteracy is another common feature of underdevelopment. Due to illiteracy the people in undeveloped countries are very much superstitious and conservative which is again responsible for lack of initiative and enterprise on the part of people of these countries. Lack of Proper Market: Another key element of development is lack of proper market. Underdeveloped countries are also suffering from lack of properly developed market. Whatever market these countries have developed, these are suffering from number of limitations viz. lack of market information, lack of diversification, lack of proper relation or connection between markets, lack of adequate demand etc. References. Todaro M.P. and S.C. Smith (2006): Economic Development. 9th edition, Pearson: Essex. Michael P. Todaro (2008): Economic Development (10th Edition), Addison Wiley.
