|
Globalization and trade economy is inevitable at this stage of the game. For centuries, humans have actively pursued raw materials, exchanging not only goods but people and culture too. Today, nowhere is this more indicative of the effect of globalization than in the United States, where cultures come together and so much of our daily existence depends on products, materials and services from other nations. We've seen jobs leave overseas and wars based around protecting foreign investments, but we've also seen a growth in exported products and cheaper technology products from places like Japan and Korea. As with anything, world globalization has both its successes and failures.
The effects of globalization are especially pronounced in Argentina. Strangely enough, a Latin American poll found that 80% of the people in neighboring Chile saw the effect of globalization to be overwhelmingly positive, while 70% of Argentineans felt globalization had a negative effect on their country. In the 1990s, Argentina was the poster child of the benefits of globalization, seeing unprecedented economic growth and stability, as well as a healthy middle class populace. Real GDP growth reached 8.1% in 1997. Technological imports rose, energy development occurred, skilled labor jobs for middle class workers increased. In fact, the middle class rivaled European nations, with most workers able to afford nice cars and houses during the economic boom years. Prosperity and globalization seemed undeniably linked.
However, a financial crisis in 2001 plunged the nation into severe debt, 20% unemployment, frozen bank accounts, a declining peso, a presidency that changed hands five times and widespread public discontent. Part of the crisis was triggered when one of Argentina's biggest trading partners, Brazil, devalued its currency. Author Ben Blackwell wrote an article called "Cooking-pot Revolution," where he described the situation as follows: "When the Argentinean economy collapsed, the country's fat cats and bankrupt politicians melted into the woodwork, leaving the workers of Argentina to sort out the mess."
We've seen in this instance that globalization and the dependency on foreign economies is not always a guarantee for success. One student from Argentina told The Levin Institute, "Policymakers have also begun to recognize errors in the design and implementation of the neo-liberal policies. International organizations, particularly the IMF, which highly conditioned its assistance to Argentina, were criticized for their role in the debacle. Normal Argentine citizens may associate organizations such as the IMF and the World Bank with the pro globalization camp, and this criticism could therefore be seen as an indirect expression of discontent with globalization."
While it worked for a while, globalization and technology couldn't save Argentina. Greedy foreign investors and loan sharks pounced on Latin America with surprising ferocity so quickly that Argentinean leaders, the growing middle class and the UN didn't have time to evaluate the implications of these dangerous power plays. Today, anti globalization activists continually point to Latin American nations as the textbook example of globalization challenges and dangers.
|
