Dickson Igwe. Photo: VINO/File

Globalism is changing the debate in most countries from one about the need for nationalism, protectionism, fear of foreigners or xenophobia, and parochialism and narrow thinking. It is changing it instead, to the increasing, and even critical importance of regions, countries, societies, and communities coming together through trade and technology for the betterment, security, and prosperity of all human beings. 

The idea of global convergence in itself is revolutionary. It is changing human behavior in ways never dreamed of just two decades back. The term GLOBAL VILLAGE can no longer be regarded as cliché: it is becoming fact. 

And Economist, Martin Wolf, in his rendition on international trade, ‘’ WHY GLOBALIZATION WORKS, ‘’ described Hong Kong and Singapore as two great examples, ‘’ of countries that have benefitted from the free flow of capital.’’ From the early 1970s, Hong Kong and Singapore have emerged as developed jurisdictions. Hosting a cutting edge technology and education Modus Vivendi: they are information science formatted, with the highest internet bandwidth to be found anywhere in the world. They further possess excellent infrastructure, and very strong economic growth that is the envy of the world.

These South Asian coastal cities and polities are positive commercial models, and tiny in comparison with neighbours such as China, Malaysia, Thai Land, and Indonesia.  Singapore is independent, while Hong Kong, formerly a British Protectorate like Singapore, is today a territory of China.

Both places are driven by globalization: another word for a new and much more intense international trade. They further enjoy a highly lucrative ocean trading dynamic, optimal international investment, and are major international finance hubs. 

Both are also world leaders in offshore and investment banking, and on the cutting edge of math and information science. They have proven to be well very well managed havens for the foreign investor and International Corporation: excellent models for small countries, such as these Virgin Islands; tiny territories that must swim in shark infested waters, controlled by some very powerful predators. 

Still, Wolf asserted that, despite the obvious benefits of globalization displayed by countries like these, ‘’ too many people are effectively outside the world market, largely because the jurisdictions in which they live, fail to offer them the conditions in which the productive engagement in the world economy is possible.’’ Wolf further stated that, ‘’no developing country would have access to the world’s advanced technologies without trade.’’

The Author was correct in that assertion! Poor governance and a lack of vision have been keeping many countries from obtaining the benefits of foreign direct investment and international trade: a boon for developing countries in accessing first world technology, and development and commerce. 

Wolf explained that, productive engagement with an integrated global economic environment meant building the type of physical and social infrastructure attractive to the international investor. This further spelled, possessing a well educated and skillful workforce, favorable economic policy, and an environment friendly to financial capital and inward foreign investment. And this model of a territory or jurisdiction with optimal factors for drawing in foreign investment would continue to draw in further international investment, causing added economic growth with the passage of time.

Foreign direct investment, married to a new dizzying world of the microchip, digital and information science, and swift transportation, drives globalization. Add to that, the idea that globalism is more of an equalizer than a theme for inequality, especially with regard to the nation state.  This was borne out by fact according to Wolf. 

The incomes of poor developing countries that embraced globalization, with more than half the world’s population, grew substantially faster than those of the world’s richest countries in recent times. Globalization has not increased inequality; it has to the contrary reduced inequality, just as it has reduced the incidence of poverty. 

And the math bears this out. The following metrics were derived from the time of the writing of his book in 2004. Wolf wrote that according to the World Bank, Gross Domestic Product per head in high income countries with 15% of the world’s population rose by 2.1% a year, between 1975 and 2001, and by only 1.7% a year between 1990 and 2001.  On the other hand, China achieved a rise in real incomes per head well over 400%, between 1980 and 2000.  China has been a major beneficiary of foreign direct investment: FDI.

Between 1975 and 2001, GDP per head rose 5.9% a year in East Asian developing countries, and between 1990 and 2001, GDP per head rose 5.5% a year in East Asia as a whole. Globalization is pulling hundreds of millions of people out of poverty and into a new global middleclass.

This would not have happened without free and open markets and the interconnectivity brought about by advanced technology, and vast improvements in transportation and telecommunications.