The Role of Government Policy in South East Asia in the Role of Globalisation

The Role of Government Policy in South East Asia in the Role of Globalisation

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The Role of Government Policy in South East Asia in the Role of Globalisation

Globalisation cannot be defined as one, single process. It is a
complex of processes including aspects such as the growth of global
trade routes and global markets. Globalisation is linked to the growth
of supraterritorial relations between people. This is the idea that
international borders are becoming permeable, and that the time space
divide between people and business continues to become less
significant. There have been countless attempts to define
globalisation. One of the most respected is Ohmae's notion of a
borderless world.

Globalisation has resulted in a change in the international division
of labour. Historically, the old international division of labour
(OIDL) consisted of few global metropoles, with several satellite
regions (peripheral areas). The model show below was developed by
Frank.

[IMAGE]


The metropoles shown are global cities. These include London, England
and Paris, France. The arrows represent the flow of exploitation.
Small settlements expropriate surplus from the surrounding regions,
and this chain continues until the largest settlements are exploited
by the metropolis.

The result of globalisation is a new international development of
labour. This has been the result of the post war rapid growth of the
Trans-National Company (a company with its operations spanning more
than one country). The TNCs are born in market developed, capitalist
economy nations (mainly USA, EU, Japan). As profit is the main
objective for many of these enterprises, they take advantage of cost
reducing opportunities. The geographical sh...


... middle of paper ...


...ply of
housing, water and electricity.

The huge demand for jobs in TNCs means that large multi national firms
are able to dictate the terms to their employees without any fear of
consequence. Firms can be confident that production will never cease,
as employees are not protected by unions, and little legislation is in
force to protect their rights. This has led to critics branding
special economic zones as 'commercial concentration camps'.

China has become a land of inequality, a complete contrast to its
communist status. The impact of globalisation in Eastern and South
East Asia has been aided by the state, whose strive for industrial
takeoff, and now maturity has allowed the TNC to take advantage in the
hope that their nation will one day will rise above the Brandt line to
join the developed market economies.

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