Economic Dimension of Globalization in East Asia

East Asian Culture
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Institution
East Asian Culture
Globalization has been described by many and there have been numerous studies which have tried to explain the intricacies of the same. There are also numerous definitions which have been put forth with authors trying to provide their best version of what they believe globalization to be. Some also seem to confuse it with free trade or to believe it is the same thing as free trade. However, the two are quite different and each represents or seeks to communicate a different idea. While free trade simply denotes a policy which some countries seem to have adopted, globalization is much different at least according to Hahn and Narjoko (2010). According to these researchers, globalization refers “to a process or an evolution of closer economic integration by way of increased trade, foreign investment, and immigration.” Globalization is, therefore, much bigger and denotes an idea that is beyond what free trade is. It represents increased interaction of various entities including people, money, countries or states, culture, and even ideas. In East Asia, the idea of globalization was at first repelled because countries like Japan favored policies of isolation. However, slowly, the countries have indeed restructured and seem to have a change of outlook. This article seeks to address globalization in East Asia but from a cultural and economic standpoint.
Economic Dimension of Globalization in East Asia
East Asia is one of the regions that has greatly benefitted from globalization. The economies of East Asia at least according to Lawrence Greenwood (2004) “are among the world’s greatest beneficiaries of globalization.” He continues to state that “robust exports and large flows of foreign investment have driven economic growth and rapidly improved welfare, reflected in rising social indices.” However, as one would expect, globalization has also had major effects on the region’s status quo. First of all, competition has increased tremendously, and the influx of ideas has also led to internal wrangles which seek to change the politics of the land. While learning keenly from the West, the region went on a growth spree especially in the 1980s and 1990s and this growth came with certain pressures as well. However, it is essential to note that the region’s leaders used almost the same model to fuel their growth. This model was deeply grounded in “sound policies” as Greenwood notes and mainly included “responsible fiscal and monetary policy, a robust foreign exchange regime, and a pro-competitive regulatory environment.” Greenwood continues to add that without sound governance as well, the region could not have experienced the growth it did.
One of the major positive economic aspects of globalization is “the emergence of a large middle class and the virtual elimination of poverty” (Nabi, 2016). As the East Asian economies grew and benefitted from globalization, the most conspicuous signal of the growth was the change in the middle class and the way the countries managed to escape or fend off poverty. Every country’s growth is always measured by looking at the size of the middle class as ...