Impact of Globalisation on a Country’s Economy and National Security

by India Story 2047
7 minutes read

Globalization is characterized by the increased interconnectedness and interdependence of countries.

Countries become more connected and reliant on each other through various means such as trade, technology, communication, and cultural exchange. This interconnectedness increases economic, social, and political interactions and dependencies across borders, making the world more integrated and unified. 

While globalisation can strengthen a country’s stability and resilience, it can also lead to vulnerabilities.

In this era of complete globalization, national security remains paramount. Despite the increased interconnectedness and interdependence of countries, safeguarding a nation’s border security, economic stability, sovereignty, and public safety is crucial.

National security encompasses various measures and policies to protect a nation from external and internal threats. In today’s globalised world, events occurring anywhere in the world can have a considerable impact on our daily lives and the country as a whole. A multifaceted approach ensures that the country can navigate the complexities of a globalised world while maintaining its security and well-being.

National security is not just limited to border and military security. Let’s look at the positive and negative impacts of various aspects of globalisation.

Economic Stability

Positive:

Globalization attracts foreign direct investment (FDI) into a country. Multinational companies setting up operations create jobs, boost industrial growth, and bring in capital, enhancing economic stability. Integration into the global markets leads to a substantial increase in exports. 

Globalization facilitates the transfer of technology and innovation to and from other countries, which brings significant positive economic impact. It is also well-understood that nations that engage in global trade are less likely to get into armed conflicts.

Negative:

When there are interconnected markets, the economy becomes dependent. An increased economic interdependence can create vulnerabilities. 

For instance, reliance on global supply chains for critical military components and resources can be disrupted in times of conflict, impacting military readiness and capabilities. 

Increased integration with the global economy creates challenges such as income inequality and job displacement. Traditional industries and small businesses may struggle to compete with multinational companies. A major risk created due to globalisation is vulnerability to global shocks like recession and financial crisis which can destabilise the domestic economy.

Information flow

Positive:

Globalisation has facilitated the rapid spread of information across borders. Information, if taken through credible sources, leads to transparency, better collaboration, response and prevention of various issues. Advanced communication technologies have made it easier for individuals and organizations to connect and collaborate globally in real time.

The global exchange of information has enabled businesses to expand internationally. It has accelerated technological innovation and the spread of new technologies, improving various aspects of life, from healthcare to education.

Negative:

Globalization has significantly influenced the flow of information between countries. The vast amount of information available can be overwhelming, making it difficult for individuals to discern credible sources from unreliable ones. Fast dissemination of false information shapes public opinion and narratives which has inevitably always led to social unrest.

The global exchange of information and the widespread use of digital technologies increase the risk of espionage. Information can be manipulated by governments, corporations, and other entities for propaganda or other purposes, influencing political and social outcomes.

Transnational threats

Positive:

Globalization has improved international cooperation among countries and organizations in addressing transnational threats such as terrorism, cybercrime, and pandemics. There are platforms like Interpol and United Nations providing legal frameworks like treaties and agreements that facilitate cooperation in combating threats.

The rapid advancement of technology and communication tools has allowed for real-time information sharing, intelligence gathering, and quick responses to criminal activities and emerging threats.

Negative: 

Globalization has also facilitated the spread of transnational threats. Terrorist groups, cybercriminals, organised crimes like drug cartels and disease outbreaks like pandemics can quickly cross borders and affect multiple countries. The interconnectedness of economies and societies makes it easier for these threats to proliferate.

With easier movement of people, goods, and finances across borders, terrorist organizations can plan, coordinate, and execute attacks on a larger scale, challenging military security measures.

Cyber security

Positive:

Globalization has facilitated better collaboration among international cybersecurity agencies, governments, and private organizations. This allows for more effective sharing of threat intelligence, best practices, and coordinated responses to cyber threats.

Development and adoption of international cybersecurity standards and frameworks ensure consistent and robust cybersecurity practices across different countries and industries.

Negative:

Global interconnectedness has expanded the potential attack surface for cybercriminals. More devices, networks, and systems are interconnected, providing more avenues for cyber threats, espionage campaigns, attacks on IT infrastructure, financial markets and trade, military systems and other critical eco-systems. Cybercriminals and nation-state actors can collaborate, share tools, and coordinate sophisticated attacks across borders.

Cybercrimes often involve actors operating from different countries, complicating law enforcement efforts. Different legal systems, regulations, and enforcement capabilities can hinder the effective prosecution of cybercriminals.

Strategic resource competition

Positive:

Globalization allows countries to diversify their energy resources by importing energy from different regions, reducing dependence on a single source. Examples include importing oil and gas from various countries and integrating renewable energy technologies from global markets.

It allows for technological advancements and innovation, brings stability of prices in the market and helps end monopolies.

Negative:

Competition for vital resources like oil raises resource driven conflicts

Global competition for resources such as energy, minerals, and water can lead to conflicts and tensions, potentially escalating into military confrontations as nations strive to secure their interests.

Dependence on global energy markets makes countries vulnerable to price volatility and supply disruptions due to many reasons like political instability, armed conflicts and natural disasters.

Migration pressures / Refugees

Positive:

Globalisation provides better opportunities for individuals in terms of jobs and lifestyle. It leads to economic development in both sending and receiving countries through remittances and labour force contributions.

Migrants often bring skills and knowledge that can benefit the host country’s economy and innovation. For instance, skilled professionals in technology, healthcare, and education contribute towards development.

The movement of people across borders enhances cultural exchange and diversity, fostering greater understanding and tolerance. Also, humanitarian assistance and international aid become easy during the national crisis.

Negative:

Sudden influxes of migrants and refugees can strain public services and infrastructure in host countries. Increased migration can lead to social and cultural tensions between native populations and newcomers.

Mass migration and refugees with extremist motives disrupt social cohesion in destination countries. This may result in xenophobia, discrimination, and social fragmentation.

Globalization can facilitate human trafficking and the exploitation of vulnerable migrants and refugees. Examples include forced labour, sexual exploitation, and unsafe working conditions.

Emigration of skilled workers from developing countries can lead to a “brain drain,” depriving these countries of essential talent and hindering their development. Competition for jobs between migrants and local workers potentially leads to wage suppression and unemployment for native populations.

Military security

Positive:

Globalization facilitates stronger military alliances and cooperation between countries. Examples include NATO and other regional security pacts which enhance collective security. Countries can acquire advanced military technology and innovations from global markets, boosting their defence capabilities.

Global networks enable better intelligence sharing and coordination among allied countries, improving the ability to counteract threats such as terrorism and cyber-attacks. It also encourages the adoption of standardized military practices and training, improving interoperability during joint operations.

Improved global logistics networks allow for quicker deployment of troops and supplies, enhancing response times to crises and conflicts.

Negative: 

Advanced military technologies, weapons and knowledge for instance of nuclear weapons can fall into the hands of hostile nations or terrorist groups, increasing the threat level. It can destabilise regions and complicate military engagements.

Global connectivity heightens vulnerability to cyber attacks on military infrastructure, leading to asymmetric warfare tactics that traditional military forces may find challenging to counter.

Greater interaction and exchange of information globally increase the risk of intelligence leaks and espionage activities.

Environmental Security

Positive:

Countries can access advanced technologies that help in monitoring and mitigating environmental degradation. For instance, renewable energy technologies, pollution control technologies, and waste management systems. It cal also help in preparing for environmental disasters and managing them.

International agreements and protocols facilitate cooperation amongst countries like The Paris Agreement on climate change and the Kyoto Protocol.

Negative:

Industrialization and increased production lead to higher levels of pollution and resource depletion. It contributes to climate change through increased greenhouse gas emissions from transportation, manufacturing, and deforestation.

In the race to attract FDI, some countries may weaken their environmental regulations.