Globalisation, a Path to Prosperity?
Author: Tonianne Pilgrim
In our modern world, globalisation can be identified as a crucial driver of economic growth and progress. It consists of the exchange of human resources, goods and services, knowledge, and information, amongst people on an international scale. It was enabled in years past, primarily through innovations in faster and less expensive transportation technology; in the modern world, it is enabled primarily through innovations such as the internet and mobile computer devices. Whether globalisation is seen in a positive or negative light, it cannot be denied that it can provide a base for which people, communities, and entire nations, can achieve financial and economic prosperity.
The international interconnectivity of our modern world has directly contributed to the way in which individuals manage their financial resources. For example, financial insights, documents such as the financial statements of public companies, international stock market and economic data, and even the ability to even invest in the stock market, in the past, would have been limited to those geographically near those resources, or to those who had sufficient monetary resources to get access either way.
Today, basically anyone with internet access and a smartphone can read the financial statements of large multinational companies or get up-to-date financial news from various sources. Furthermore, due to the internet, anyone with access has essentially the majority of all recorded human information at the tip of their fingers. In regards to personal financial management, persons who may not have had access to adequate education, due to whatever reasons, may be liberated from such restrictions by gaining access to the internet, where one may educate themself on basically any topic they please. The internet, the key driver of globalisation in the modern world, has also made it possible for persons globally to set up online brokerage accounts and invest in the stock market, or in other securities such as forex or commodities.
Many of the persons liberated from geographical restrictions to investing are persons, who otherwise, would not have had the access to do so. This gives many the opportunity to live more prosperous lives, which in turn, benefits their community, as they are better positioned to contribute to their nation’s economy and productivity.
Moreover, international organisations such as the World Trade Organisation, are strong catalysts for economic growth in developing countries throughout the world. Such international bodies contribute greatly to positive interactions and agreements amongst participating world nations, and to the financial and economic growth of said nations through global partnerships. For instance, the World Trade Organisation, of which the majority of the world’s nations are a member of, implements initiatives that
promote international interdependence. One way in which they do this is by developing initiatives that help developing countries trade with more developed countries by facilitating agreements that lower barriers to trade, such as tariffs and quotas, which may have a greater negative effect on developing economies’ ability to participate in world trade.
In the Caribbean region, organisations such as CARICOM (Caribbean Community) and CARIFTA (Caribbean Free Trade Association), help to promote connectedness and facilitate trade and co-operation amongst Caribbean nations by developing agreements amongst member nations to restrict tariffs and other barriers to trade. Trade and co-operation, when done well, can lead to increased trust amongst member nations, and creates a strong financial network for participating countries. For example, CARICOM member Jamaica has seen a steady increase in their stock market value over the years, due in large part to their global trading of raw materials and other commodities. Globalisation is a powerful tool that has led and continues to lead individuals and nations to become financially prosperous, and is an effective way to foster economic and financial stability within the global economy of our modern world.
