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GLOBALIZATION OR NEW NATIONAL BORDERS?
Conference Paper · December 2015
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Christian Tanushev
University of National and World Economy
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GLOBALIZATION OR NEW NATIONAL BORDERS?
GLOBALIZACIJA ILI NOVI NACIONALNE GRANICE?
Ph.D, Christian Tanushev, Assoc.Prof.
1
Abstract: The study of globalization requires examining several aspects: how do we define the
phenomenon, which are the advantages and disadvantages we observe and which contradictions
are driving forces of the process. This article is aimed to contemplate on the questions: do we
follow the road of globalization or are we at a track to new national borders?
2
Key words: Globalization, advantages and disadvantages of globalization, contradictions in
globalization
1. INTRODUCTION
The process of globalization in different areas of our life: political, economic, technological,
environmental has accelerated in recent years.
In politics, globalization encourages the implementation of democratic practices of governance
and protection of human rights. It increases and intensifies interstate contacts and supports the
creation of supranational regulatory regimes. In geopolitical terms it is manifested in an effort
to remove the barriers imposed by national governments that restrict the free movement of
economic resources. In the economic sphere globalization implies applying the principles of
market economy, both in terms of domestic and external markets and supports market
integration that goes beyond the borders between countries. The technological aspect is
manifested in the ability to accelerate research in various fields of science, through simplified
communication between scientists and the dissemination of scientific knowledge. In the social
area, globalization develops the potential for expansion of interpersonal contacts, general and
vocational training, and helps to overcome intercultural differences. Environmental
manifestation is the joint sharing of the Earth: its continental land, air, and water.
The study of globalization requires examining several aspects: how do we define the
phenomenon; which are the advantages and disadvantages we observe, and which
contradictions are driving forces of the process. This article is aimed to provide guidelines to
contemplate on the questions: do we follow the road of globalization or are we at a track to new
national borders?
1
University of National and World Economy, Studentski Grad “Christo Botev”, 1700 Sofia,
ctanushev@yahoo.com
2
The paper is published in Conference Proceedings from International Scientific-Business Conference
“Leadership and Management: Government, Enterprise, Entrepreneur” (LIMEN 2015), held in Belgrade, Serbia,
December 2015 http://www.limen.org.rs/conference-proceedings.html (June 2016) (ISBN 978-86-80194-02-8)
(COBISS.SR-ID 220662540)
2. GLOBALIZATION - DEFINITIONS
An article published in 2006 by Dr. Nayef R.F. Al-Rodhan and Gérard Stoudmann from the
Centre for Security Policy in Geneva provides an extensive list of more than hundred different
definitions of the process by scientists and institutions. This fact alone is sufficient to
demonstrate the complexity of the concept and the different perspectives from which it could
be perceived. The definition of these two authors states: “Globalization is a process that
encompasses the causes, course, and consequences of transnational and transcultural integration
of human and non-human activities.” [1]
Nicholas Stern as Senior Vice-President and Chief Economist of the World Bank defines
globalization as “the growing integration of economies and societies around the world” [2]
In social sciences professor Roland Robertson defines globalization as a concept that refers
both to the compression of the world and the intensification of consciousness of the world as a
whole… both concrete global interdependence and consciousness of the global whole.[3]
Using a term from physics is not accidental. It is known that compression of the gases causes
the reduction in volume in order to raise their temperature and pressure.
Worldwide, advocates of the process are as numerous as its critics. On one hand, in the social
sphere, we have had a significant international cultural exchange. There are eloquent examples
in Bulgaria. The world has an opportunity to get acquainted with the Thracian treasures, the
spread of Byzantine iconography in our land, and at the same time Bulgarians have access to a
virtual representation of the exhibitions of leading museums such as the Louvre, the Hermitage,
Prado and Metropolitan. Culture comes close to each and every person - the world premiere of
movies, books, instant access to information. People are able to travel abroad with fewer
restrictions. They have access to better education and health care services. They may even have
their own favourite dish pasta, sushi, burrito with guacamole - that are served in “unbelievably
remote” regions of the world.
On the other hand, monetization of social activities leads to the inculcation of thinking and
behavioral stereotypes. (the Hollywood productions, the Japanese manga, virtual games).
Scientific research concentrates mainly in areas with fast return on investment. In education we
observe demand for specialties, which will yield financial prosperity, at the expense of the
humanities. People are deprived of treatment because of the costs incured.
Integration in the field of the economy has reached the highest level of development compared
to other areas. The definition of the International Monetary Fund emphasizes specifics in this
area.
According to the IMF: “Globalization refers to the growing economic interdependence of
countries worldwide through the increasing volume and variety of cross-border transactions in
goods and services and of international capital flows and also through the more rapid and
widespread diffusion of technology [4].
So, the analysis of these definitions suggests that the process of globalization is creating
networks of connections and relationships between individuals, companies, governments, non-
governmental organizations on a planetary scale, which allow free movement of flows:
people (migration);
goods and services;
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capital;
technologies (transfer);
information (mass communications, Internet) and ideas
Economic data speaks for itself. The value of trade (the sum of exports and imports of goods
and services) as a percentage of gross domestic product in the world has increased for the period
1990 - 2013 from 38.75% to 59.45%. [5] Foreign direct investment as a percentage of Gross
Domestic Product in the world rose from 6.5% to 33.6%. [6]
3. ADVANTAGES AND DRAWBACS OF GLOBALIZATION
The benefits of globalization can be traced in several directions.
Material well-being in many countries has increased. Substancial raise in average income per
capita is observed. The number of people, who lived in extreme poverty (less than $1.90 per
day), is reduced significantly from 1.95 billion people in 1990 to a forecast of 0.72 billion
people for 2015. The global poverty rate has fallen from 37.1% in 1990 to forecasted 9.6% for
2015. [7] The examples most frequently mentioned are India, China, South Korea and Sub-
Equatorial Africa. In these countries the results are achieved by expanding the market, boosting
in volume of production and reducing the costs per unit of product through economies of scale.
International trade has increased in scope of products and participants, in scale and in pace and
allows meeting timely and effectively the needs of significant groups of people. The idea can
be traced to the founders of the classical school of economics Adam Smith and David Ricardo
with their concept of comparative advantages and efficiency in the production of goods by
different natures. Looking deceptively easy, the task of expansion of world trade in recent years
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