Globalization and Financialization
The New Approach of Best Corporate Citizenship
Globally speaking, the politics of globalization has been enormously debated. Current financial crisis has triggered the unenthusiastic brunt of people worldwide. This phenomenon is substantially caused by the impact of globalization. This paper will seek to understand the current financial crisis of financialization under the spectrum of globalization. The ongoing financial crisis of America and other regions of the world clearly translate the interconnectedness of the new approach of financialization conundrum. This paper elaborates the effect of globalization on financial flows and discovers the casualties from this crisis. The current United Nations Secretary General Ban Ki-moon called this crisis as “Slavery Perpetuated by Global Financial Crisis”.
First, there will be an introduction and some thought of pros and cons of globalization. Second, there will be an explanation of financial crisis, its casualties in our planet. Third, there will be suggestions and recommendations including the structure design to the new approach of best corporate citizenship to shoulder force in tackling this predicament.
Globalization simply refers to the integration of regions into a global sphere. Many factors are considered the substantial proponents of globalization such as political ideology, social, culture, finance, technology, economics and geography that have drastically changed its shape to fulfill the lens of globalization. Many authors have linked current globalization to the belief of it is a repeating world history. Some said globalization has evolved around the expansion of human population and the invention of civilization such as the Sindhu of India, Roman Empire, or Han Dynasty of China. Some found that the historical routs of explorers and colonial agents are initially the links of flow of globalization such as the discovery of North America by Christopher Columbus or the Silk Road of Marco Polo. But the notion of globalization clearly emerged after the World War II when economists and politicians tried to restrain from continuing declining international economic integration and intractable division. The term itself was coined by different scholars interpreting in different periods. But in modern world, globalization has been preferably reiterated to identify the flows of trade, exchange of ideas and knowledge, technology, investment, and financial exchange. In Globalization and Its Discontent, Joseph Stiglitz defines globalization as “closer integration of the countries and peoples of the world which has been brought about by the enormous reduction of costs of transportation and communication, and the breaking down of artificial barriers to the flows of goods, services, capital knowledge, and (to a less extreme) people across borders” (Stiglitz, 2002). Part of this change is due to mobilization of labors and migration, but much of the larger part is due to changes in per capita income that is the “great divergence” as the ratio of per capita income of the richest to poorest nations are widened (Venables, 2006).