Critical thinking on china and globalization by doug guthrie

Doug Guthrie, in his article “ China and Globalization” Can present a good comparison analysis with David Harvey article Neoliberalism with Chinese characteristics in ” A brief history of Neoiberalism”. Dough Guthrie has presented Globalization in China as a free flow and optimized allocation of capital, technology, information and service in the global market. This can be compared or is similar to neoliberalism in David Guthrie’s article that features neoliberalism as an aspect that has an influence on an international level besides it being having its dominancy from a political and economical perspective. David Harvey approaches the aspect of neoliberalism as a dogma that has served to endorse the fortunate at the expense of the people and the environment.

According to Doug, globalization is an inevitable aspect that has been developed from the forces and advances in the science and technology and this can be contrasted with David Harvey article who views neoliberalism as a free market, free trade and also free movement of capital all in the name of producing an efficient social, political and economic environment. This will be clear that, David in his article is mostly interested with ensuring that justice and fairness is a right that should not be denied to people as it has ensured a better status in the society.

While Doug views globalizations as an aspect that has so far increased interdependence between countries which has also resulted in their mutual interaction, Harvey on his account on the history on neo-liberalism argues that in the recent time Neoliberalism was thought to be beneficial to the economic elites only while the rest of the people suffered oppression by the minority group who were being favored by the system. This is something that China has learnt that when a country segregates itself from others that are embracing the globalization, it will always be moving back instead of developing.

Doug Guthrie argues that development will only be achieved through opening to the outside world and having an integration with those countries that on the track on the move of development. It will also be achieved through accepting changes and having cooperation with other nations and also by taking in the results of human civilization within the strategies of development. Though economic globalization has been absorbed in China, the country experiences some challenges associated with the absorption of globalization within its system.

There lacks justice or even an equable international economic order in the way globalization is handled in the different countries. This is quite different from Harvey’s perception; development of a nation does not merely depend on the outside world but rather within the country revolving around the factor of neoliberalism which means that the market is not under control of anything not even the trends or the forces of nature.

The benefits derived from the result of globalization are very discriminative when it comes to sharing. Only the developed countries are the ones which become the beneficiaries since it is considered that they are the propellers of globalization. The developing countries are always on the receiving end as they are the ones which absorb all the negative impacts of globalization. In china, globalization is viewed in a different perspective as it is presumed that; globalization brings both negative and positive impacts. This can be contrasted with Harvey’s idea that neoliberalism would mean that there would be no discrimination of countries the factor of free trade and free market paves way for any country that has the potential to indulge in business. According to the author, China is one of the developed countries that has been able to embrace globalization and therefore has been able to even have a greater contribution to the world at large. This was evidenced in the year 2003, when the world economic was dilapidated and only in China that the growth rate was pointed out to be growing very first. The high growth rate recorded together with growth policies from other developed countries revived economy in East Asia. China has therefore been termed an engine of the regional economy besides having the largest rising market in global sense. Consumers from all over the world are flocking into China as they enjoy high quality goods at low prices.

Dough argues that there is a presumption that in few years to come, China will be a vast market with all kinds of opportunities to invest into; however this may also have some challenges. Stiff competition both at international basis and home ground comprise of some of the challenges that China continues to experience. However, in offsetting this challenge China is has opened and is still in the process of opening to the outside world in all the areas using diverse approaches. This task might be tremendous but China is determined to fight back and turn the challenges into opportunities. Presently, China is in a better position to face any global challenge and this is through the conceited efforts from Chinese besides the strategies implemented in developing a better-off society.

David Harvey’s, in his article, has credibly argued in very simple terms about the political economy of neo-liberalism world and the future prospects of it. The author has succinctly explained the neoliberal misinformation did set people’s mind that accumulation of wealth was only for the privileged ones in the society, this is in contrast with Doug’s argument that globalization does not favor an individual but instead the whole nation. This means that it becomes very difficult for and individual to directly benefit from the economies of scales acquired by a country. If in any case an individual has to benefit, may be from other sources, for instance, low taxes on goods. This is also another aspect that brings a controversy between the two articles, David talks of free trade, a free market and open capital where there are no taxes involved and anyone is free to carry out and enjoy the benefits of trading without any regulations. A controversy issue in this respect is that, globalization is bureaucratic and involves regulations for the members and that is the reason that in any globalised nation like China, though there is a high growth in economy the gap between the rich and the poor continues to widen.

Harvey argues that a business person should have a maximum control over all the activities within the vicinity of the business and the government should have the least involvement in the business activities. In contrast to this, globalization is a system that cannot be entrusted in the hands of one person but the government has a major control over all the businesses that are on an international level.

In the practical terms, neo-liberal meant a protection to the economy and this mostly involves a responsive action to the citizens. Harvey has argued that neoliberalism means a free market, free trade and also free movement of capital all in the name of producing an efficient social, political and economic environment. The article talks about lowering of taxes, deregulation and least involvement of government in the business world. In essence, this will mean privatization of some business, closing up of some unions which are not beneficial to the economy as this will pave way for foreign competition.

In his article the Harvey perceives Neoliberalism as an aspect which will benefit only the economic elites and oppressing the less privileged in the society. Neoliberalism, according to the author from time in memorial has always been thought to benefit the rich and this was much eminent during the Second World War and in the 1970’s, whereby in the United States neoliberalism benefited the rich. Statistics show that, the privileged in the society which is 1% at the moment is able to control around 15% of wealth in comparison to 8% which was recorded at the end of the Second World War. China has however not embraced the pure neoliberalism since it is able to control and manage its resources. China has recorded the highest growth rate (9-10%) but still this is widening the gap between the rich and the poor and this because of the currency that is being kept low.

References

Guthrie, D. (2008). “ China and Globalization” . Retrieved from
http://www. highbeam. com/doc/1P3-1450869441. html
Harvey, D. (2010). Neoliberalism with Chinese characteristics in ” A brief history of
Neoiberalism” . Retrieved from http://downloadbookz. com/a-brief-history-of-
neoliberalism. html