Globalization and Power Shift

Globalization and Power Shift

Introduction

The transition of power to the East is getting pace, so is the West worried about the consequences of this shift of power esp. to BRIC countries. The dealings in the international environment will definitely changes its trends by providing more challenges to the West, and the rest is well. West is now aware of the rapid pace of Asian economies and their market capitalization, global access, and transfer of technology within the countries. Major power shifts between states do occur but infrequently and are rarely peaceful in the transition. The case of Japan & Germany is an example of this major shift as they failed to adjust each other in the early twentieth century.

Governability crisis has captured most of the world's advanced democracies. Being the world`s most advanced economics Japan, United States, and Europe are facing simultaneously political breakdown. The gap is widening between what electorates ask the governments to deliver and the response by the governments is created by globalization. This is why the western world is facing the challenges concerned with the good governance demand. Public in industrialized economies is looking forward to their respective governments to take the issue of growing inequality, and declining living of standards resulting from the unwanted global flows of services, capital and goods. However, the western governments are lacking the power to deal with the particular situation. The societal actors involved in policy making are seen less effective due to globalization; this diminished the influence of west over the world affairs by stimulating the rise of the rest. The question is to what extent the West will adopt the influence of the rest of the world, esp. of BRIC countries bloc.

Discussion

Globalization has a major impact on the economies of the countries. It could bring the disruptive changes in political, social, and cultural trends of the countries. BRIC countries are both the largest emerging and the fastest growing economies in the world. They constitute of approximately population of three billion, or just near the half of the total world's population. Not only this, but the countries of BRIC added more in the GDP of the world economy overall. The consensus lies in the hypothesis that somewhere in between 2030 to 2050; China would be the biggest economy of the world. On the other hand, the top ten economies of the world will include Brazil, Russia, India, and China by 2020 (ZhiDong, 2000). Yet, China will lead the world, with the title of undisputed heavyweight creditor in the world economy. Most important benefit to the BRIC countries is that of globalization, since with the help of globalization these countries are seen to have developed the good political and economic alliances within their group. However, these alliances may not be permanent and are likely to be temporary. Yet, the analysts hold the belief in BRIC countries to frame out the new economic world order. This statement is due to the assumption that, in future Brazil & Russia will dominate ...