Argument: Second Coming Capitalism is a disadvantage for developing countries and those ex-communist countries trying to catch up with the “West”.
In the book “Inequality in the Global Village” Black highlights the fact that what the developed world calls free market and democracy is indeed the second coming of capitalism, therefore, it is designed to disadvantage the weakest. However, the book does not look at globalization as the main source of the problems: it is capitalism coming into countries where it was not before known. It is understandable that countries that suffered from the despotic and communist suppression of individualism have embraced the changes towards democracy, capitalism, free market after the iron curtain fell, as it represented freedom for them; something they lacked for over forty years. However, the views of the people living in these countries might not be represented in the political and economic decisions of the governments replacing the communist leaders. According to the American Political Science Association (30), the high level of inequality on a global scale makes it almost impossible to carry out reforms that make economic institutions fairer.
In the former Eastern bloc, forms and methods of privatization have been criticized by several authors. According to Şiriner and Nenička (244) privatization and opening the markets for global firms have not brought stability in the region. National governments, for example the Czech and Hungarian political parties blame the opening of the markets and allowing global and international companies enter the country for the poor performance of the economy. Indeed, many companies received tax rebates for investment and left after the tax-free period ended, taking all the profit and jobs into another country. (Şiriner and Nenička, 246)
The author is right; if free market and capitalism is supposed to benefit people who live in a country, poverty rates should decrease and living standards would rise. Despite the common belief above, it is not true that globalization and the new global market entrants brought only benefits for the countries. Trouble spots are still present, and while European culture is able to adapt to the second coming of capitalism and profit-oriented approach of companies more, those in Ethiopia and South Africa do not have the traditions or the systems in place to implement changes. This often results in a great level of resistance or the lack of support from governments. While people living in these countries are trying to live the old way or adapt the new one, they are unable to make ends met. If they choose to stick with farming and rural living, for example, they will not be able to compete with global agricultural companies. If they try to catch up, they will not have the skills and knowledge to do so. The education system in these countries is unable to support changes, and political changes do not happen quickly enough, not to mention economic institutions, regulations and policies. Therefore, the reason why there is an “Inequality in the Global Village” is because capitalist global firms are profit-oriented. Moreover: they are focused on short-term results. As they have no incentives related to empowering people of the country they operate in, there will always be inequalities. In that term, the author is right stating that the “second coming of capitalism” is not beneficial for developing countries. As Rothenberg (45) states, there is more to be done about society development and education to abolish child labor, racism and inequality in these countries. However, internal problems are also responsible for the slow development, as well as globalization.
American Political Science Association. (2008) The Persistent Problem: Inequality, Difference, and the Challenge of Development. Report of the Task Force on Difference, Inequality, and Developing Societies. July 2008. Print.
Black, J. (1999) Inequity in the Global Village, Exploring the State of the World Today. Kumarian Press Rothenberg, P. (2005) Beyond Borders: Thinking Critically About Global Issues. Worth Publishers. Print.
Şiriner, I., Nenička, L. (2011) Globalisation: Dimensions & Impacts. International Journal of Politics and Economics. London, 2011. Print.