The Asian Continent
The world we live today works at the global level.
Every state has been involved in global economies for survival. No country is an island. Thus, the phenomenon of political globalization has been adopted by almost all the countries in the world. Pakistan, a country in the Asian continent, has been involved in the political globalization. This implies that it is interconnected to other countries, something that affects its political orientation.
Its stock markets are closely linked with local and international companies (Andrus, 56). As a result, medium and large businesses are able to shift their production outside the national borders of Pakistan. Therefore, this report analyses the political globalization in Pakistan and the resultant effects. Pakistan has not fully benefited from global economies. As a result, the majority have a skeptical perspective on globalization.
This is simply because most people are skeptical on the current international processes. They view it to be more fragmented and regionalized rather than being globalized (Kukreja, 36). Certain super powers in the world are the main benefiters of the global economies. Pakistan is not highly developed, compared with countries such as United States and China. Thus, there is a common belief that the country has not been drawn into the global economy to benefit but to destroy the lives of its people (Kibria, 104).
Proponents of skeptical perspective, argue that countries are being drawn into the global economy for exploitation rather than benefiting from the international economy. Thus, the country is becoming marginalized, yet they are expected to participate in international trade. The country’s winners and losers are represented n the process of globalization through the NIE, the SPG, the Outliers as well as the Feminist Economics perspective. NIE (National Intelligence Estimate) in Pakistan depicts the country as a loser in the global economies. They depict the country with no money, no energy, and no government.
The country’s political instability has been triggered by United States as they argue that the country has become a center for al-Qaeda operations (Kukreja, 63). On the other hand, estimates from SPG, outliers and feminist economics perspective have shown that the ordinary people are going through tough times. The prices of basic commodities, such as fuel and wheat, have skyrocketed. Seventy five percent of citizens live on less than a dollar a day. The country has shifted its focus from economic developed to equip its military.
Americans have continued to argue that it is doing nothing to fight Taliban. As a result, Pakistan military has chased about 300,000 Taliban from their homes in Bajaur. Thus, the agencies give a negative picture of Pakistan and how its economy has been affected by ethnic tensions and terrorist attacks (Andrus, 210). This has also affected the elected civilian government that has become weak and corrupt making it hard for the country to develop policies for the benefit of the citizens.Pakistan has not been in a position to adjust to the period of G-Zero worlds.
This is a situation where the country has been unable to deal with instability and reduced public spending as well as the Beijing consensus. The country is currently undergoing serious economic problems. As a result, it has not been able to participate effectively in the G-Zero worlds. It is experiencing economic and political instability (Kibria, 150). Government spending is reduced because its rrevenues have declined with reduction in prices of oil and agricultural products (Kochanek, 56). Foreign investments in the country have also reduced as the Asian investors, who had plans to start projects in the country, have been scared away by the economic situation in the country.
The country has been able to develop over the years in regard to the concepts of competitive advantage of nations and global city. Before the financial crises in 2008 and the war against crimes by the Americans, Pakistan had been experiencing a remarkable economic growth since 1960’s. This has been manifested in its Gross Domestic Product statistics. As a result, the country has gained competitive advantage in comparison with other nations (Kochanek, 41). For instance, in the financial 2007, the real increase was 52 percent, where a significant amount of the increase was allotted for the development of national economy. Despite the previous development, the country is currently undergoing severe economic turmoil, following the weakening from the effects of financial crises and the association with the terrorist groups.
On the other hand, the country has been altered by the new geopolitics of energy or other scarce natural resources. Notably, Pakistan relies on the export of oil to finance its development activities. Following the fall of oil by half the prices in 2008, the country saw it hard to implement its development plans. For instance, Tata Motors saw a major fall in its share prices (Kukreja, 26). Other Indian businesses in the country have experienced a great fall in their market share.
Moreover, their foreign assets have fallen in value. Thus, geopolitics of energy and other resources have affected the economic growth of the country.