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2. Globalization in Global Context
2.1 What does Globalization Mean?
Globalization means the deepening of worldwide interdependency, so that peop le who want to be in power and shape their futures-in their local communities and nations -will also have to act globally. Let us share the optimism and the deep concern, the hopes and the fears. It is our conviction that globalization can and should be shaped according to the needs of the world’s people. There are choice and alternative models for development, which should be explored.
Ethics must not be left in a separate realm but should be planted in to the very core of
international integration. International solidarity-a global civic ethic inspiring common
responsibility – must guide our societies. Globalization must be transformed into a process of inclusion, not one of exclusion. The global economy will not survive in a chaotic world of poverty, conflicts and exclusion, nor will humanism. The vital points should be kept in mind are:
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That local civil society has a major role to play in shaping globalization.
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That how comparative advantage is created should matter, but this principle should not
be misused as a method to maintain or establish trade barriers.
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That financial volatility should not be permitted to endanger the socio -economic
stability or competitiveness of an entire nation and regions.
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Ways of financing global public goods need to be developed.
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The crucial role of the private sector in the process of globalization and development
should be recognized.
This calls for a deeper and more creative discussion of the different aspects of globalization and the need for action. Governments, academics, the business community, trade unions, civic organizations and other parts of civil society need to interact to focus on long-term interests and decisions. Political leaders must build on shared values to make enlightened and common interests prevail, when societies are tested for their ability to meet both domestic and global needs. Nations need to come together in open ways to deal with some of the most promising and pressing aspects of integration. The dynamic regional co-operation emerging all over the world offers participating countries new opportunities.
The European Union’s efforts to strengthen its economic and political relations with other
regions should be encouraged. The non-aligned movement, comprising 80 % of humankind,
promotes the creation of a new global human order aimed at reversing the growing disparities between the rich and the poor, both among and between countries, through reduction of poverty, expansion of productive employment and enhancement of social integration.
2.2 What does Competitiveness Mean?
It is the relative standing of one competitor against other competitors. Competitiveness is like the game of musical chairs. Competitiveness can refer to a nation’s preparedness for future competitive interactions. Competitiveness can also be described as a benchmark for past performance. To be competitive in this sense is to have succeeded in attaining a certain favourable ranking. The most common measure of this criterion is a nation’s share of a global market. Michael Porter a Harvard Business School Professor, questions the Economic Theory of Comparative Advantage. He suggests 4 sets of factors that contribute to a nation’s well being.
The first set pertains to factor conditions such as a nation’s resources, it’s labor costs and the skills and education of its people. The Second set consists of the demand conditions of a nation, such as the market size, the way products may be advertised and the degree of consumer sophistication. The Third set of factors in Porter’s mode concerns the suppliers. A Company prospers when supporting companies are located in the same area. The fourth factor set consists of the firm’s strategy and structure as well as rivalry among the competitors. The combination of the four sets of factors leads to competitive advantage. Global competitiveness report 2001 prepared by the world economic forum assesses the competitiveness of Bangladeshi firms as the lowest of the countries surveyed.
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