Since the late 1990s, nearly three-quarters of the developing world (75 of 103 countries) started catching up, at an accelerated annual pace of about 3.3 percent per capita. Although developing country growth slowed during the global financial crisis (2008–12), the rate of catch-up with advanced countries was not materially affected and remained close to 3 percent. At around the same time, perhaps just preceding this convergence phase, world trade surged, ushering in an era of hyper globalization. Recently war torn Ukraine started Rethinking in terms of hyper globalisation. In a hyper-globalised world, countries would largely produce things in which they have comparative advantage and import those others can make at lower opportunity cost. The most recent example is palm oil, which accounts for roughly 40 per cent of India’s annual vegetable oil consumption of 22-23 million tonnes. The country’s palm oil requirement is met almost entirely through imports from Indonesia and Malaysia. Indonesia alone has a nearly 60 per cent share of the world’s output and export of this oil. Comparative advantage theory would see this as a good thing. When palm oil is produced in Indonesia and Malaysia or sunflower oil in Ukraine and Russia, it results in “gains from trade” for other countries.
Major characteristics of hyper globalism are:
A related feature of this era of hyper globalization is the rise of multinational corporations and the sharp surge in flows of foreign direct investment (FDI), which have both caused and been caused by cross-border and other flows of goods and services.
The main difference between globalisation and hyper globalisation is very narrow and can be best described as the rate of speed at which the process of globalisation takes place. period between 1870 and 1914 the Golden Age of globalization in which world trade in terms of gross domestic product went from a 9 percent to 16 percent share. However, in the current age of hyper-globalization, which includes both goods and services, the gross domestic product share has reached 33 percent.
The period of hyper globalization has been associated with the most dramatic turnaround in the economic fortunes of developing countries. Hyper globalism is making the movement of goods, services (including technology) and human not only easier but also necessary. Hence it is providing a way to spread liberal ideas. This can be the cause for increasing democratic movement’s world over. Increasing demand for sustainable development in many places is result of awareness of such protests elsewhere in the world. Women empowerment, increasing accessibility of quality educational and health benefits etc. can also be attributed to evolution of hyper globalism. All this help make the world a better prosperous world. Hyper Globalization may be pursued at current or even higher speeds in later, but need to be proceeded gradually where Sustainable development, culture, happiness are involved. All the nations need to discuss and agree upon terms regarding the same. Finally Hyper Globalization has to be pursued at a pace where positives fat outweighs negatives. The major reason behind threatening human prosperity is increasing inequality, amassing of wealth by few individuals. This needs to be taken care for truly enjoying the benefits of Hyper Globalism.
Verifying, please be patient.