Why Globalization is Terrible for Most People
The Price of Progress: Unveiling the Cost of Consumerism 

Globalization has undeniably succeeded in certain respects, lifting millions out of poverty and promoting mass economic growth. However, its benefits do not outweigh the geopolitical problems it has helped create. Globalization has come at the expense of humanitarian rights for workers in the Global South.

A Brief History 

Trade has existed since the dawn of man. Globalization is not a new phenomenon; since the beginning of civilisation, early humans exchanged and bartered goods—such as food, tools, and animals—before the invention of money. Several ancient societies even used sea shells as a means of exchange. As travel advanced between cultures, globalization evolved significantly.   

Dating back to the 1st century BC, the Silk Road facilitated the trade of gold, silver, and silk between China and Rome. Initially established during the Han Dynasty, this network of trade routes eventually connected China with Europe, Africa, Asia, and the Middle East. For over 15 centuries, Europeans used the Silk Road to trade goods such as glass for silk and spices. This was followed by the spice trade, where Islamic merchants dominated routes across the Indian Ocean and Mediterranean Sea. By the end of the 15th century, the Age of Discovery had begun, bringing with it the transatlantic slave trade. This period saw European explorers conquering and integrating new territories, such as the Americas, into their economies through the exploitation of African slaves. Slavery demonstrates the dark side of globalization, serving as one of the earliest examples of how globalization can harm people just as easily as it can bring us together. 

At the end of the 18th century with the British Industrial Revolution, globalization was solidified through improved manufacturing and transportation, leading to a significant increase in global exports. The two world wars marked the roots of the military-industrial complex, driving collaborations between governments and defence industries, accelerating the globalization of production and technology. This would set the stage for the complex interplay between economic and military interests that characterizes modern globalization. 

Then came the digital revolution which accelerated globalization, as China joined the U.S. as a global power. Today, the latest wave of globalization has had its own issues, driven by advances in AI and technology that have led to the disruption of entire industries and mass job losses.   

The Upside 

Globalization has increased living standards in developed nations by making products more affordable and accessible for the working class. It benefits multinational corporations and investors by facilitating business growth and expanding consumer markets. By enabling the outsourcing of labour, globalization allows corporations to hire workers at much lower costs. Additionally, it provides businesses with a competitive advantage by offering access to raw materials at significantly cheaper prices overseas.  

During the mid-20th century, globalization contributed to upward social mobility in industrialized nations. However, this trend has since tapered off, and we are now experiencing a period of low social mobility (the ability of the individual to improve their economic status from birth). In fact, the U.S. has the lowest social mobility among all 27 industrialized countries. In a study of 25 of the world’s most advanced economies, the McKinsey Global Institute found that nearly 70% of households have experienced stagnant or declining incomes over the past decade. This serves as a reminder that social mobility has completely collapsed, and current financial systems are not at all working for most people.      

The Downfalls    

While globalization promotes mass economic expansion and benefits multinational corporations, investors, and consumers, it harms the low-wage worker in developing nations. It can be argued that globalization promotes exploitative labour practices, including slave labour and weakened labour regulations, due to the increased demand for cheap labour. This creates a wet bed for conditions that facilitate child labour and human trafficking.  

The Increased Demand for Cheap Labour

Globalization often drives companies to seek cheaper production costs, which can result in the exploitation of workers and create environments where forced labour and human trafficking thrive.  

In the current market, the focus has shifted from innovation—technology has already met many of our needs. Instead, companies are now engaged in a race to produce the cheapest products, whether it's the lowest-cost smartphone, the cheapest batteries, or the most affordable shoes – essentially newer models of the same products that we do not actually need. As the market becomes oversaturated with competitors, the emphasis increasingly shifts towards cutting costs rather than advancing industry standards. This often involves sourcing the cheapest raw materials and minimizing expenses, which in turn drives the demand for extremely cheap labour to facilitate these practices.     

This increased demand for cheap labour means that desperate companies in developing countries are lowering their wages to compete for outsourcing contracts from often Western corporations. The alternative would mean losing work to other suppliers. This race to offer the lowest prices undermines labour standards, leading to abysmal working conditions. In their desperation to acquire working hands, child labour and human trafficking become common place. 

Furthermore, individuals in impoverished communities face economic vulnerability and have limited employment options, making them more susceptible to exploitation and abuse. They may be forced to accept low wages, abusive environments, and coercive labour conditions simply to survive. Unfortunately, corporations exploit this desperation, turning the advantages of globalization for businesses in the industrialized world into severe disadvantages for people in the Global South.  

Child Labour

This is evident in the garment industry in Bangladesh, which employs around 4 million people and is crucial to the country’s economy, with 84% of Bangladeshi export revenues coming from apparel alone. Unfortunately, this sector often relies on child labour, with some children as young as 12 working for less than $2 a day and working an average of 64 hours per week. Working conditions are abysmal, as highlighted by the 2013 Rana Plaza disaster, where a factory collapse resulted in the deaths of over 1,100 workers. 

This is also seen in the Democratic Republic of the Congo (DRC), which produces at least 60% of the world's cobalt, essential for lithium-ion batteries and various electronic products. Child labour is widespread, with Amnesty International revealing that these children work 12 hours a day, earning between $1 and $2. They report over 40,000 children are employed in mines across southern DRC, where they are exposed to lethal mineral dust and air contaminated with nitrous haze, risking permanent lung damage. Forced to carry heavy loads in incredibly toxic conditions, this labour remains their only means of survival. Additionally, child labourers are often deprived of education, missing school to work in these harsh conditions. Such exploitation highlights the absence in equality of opportunity and the relentless pressure globalization places on vulnerable workers, perpetuating inequality and unsafe working conditions.   

Bad for the Environment 

The pursuit of cheap, disposable products contributes to a cycle of environmental harm and resource depletion that is unsustainable in the long term. In the Democratic Republic of the Congo (DRC), the cobalt mining industry contaminates land and water via industrial runoff, and air quality deteriorates due to nitrous haze. Similarly, uranium mining in Niger for French nuclear power has led to significant environmental damage and radiation health hazards for local communities. Additionally, batteries and other goods are often designed with planned obsolescence, intended to break down and require frequent replacements, which fuels excessive consumerism and exacerbates environmental degradation. These practices underscore a broader issue within globalization: mindless consumerism = environmental destruction. The relentless pursuit of economic gain and growth often comes at the expense of both human rights and environmental sustainability.  

Globalization allows companies to exploit cheap labour in developing countries, cut costs and avoid stringent regulations. Employing workers in the third world is cheaper, reduces legal liabilities, and makes it easier to sidestep human rights and health regulations. By hiring workers in the global south, companies in the west avoid the higher costs and potential lawsuits associated that would come with employing their ‘own’ people, who would demand better safety measures and higher wages. This underscores the dark side of globalized capitalism where resource-rich but economically marginalized regions are subjected to severe environmental degradation and human suffering in exchange for the benefits enjoyed by more affluent nations.  

Globalization is utilitarian not egalitarian 

Good for some at the expense of others—while globalization has promoted substantial economic progress and improved living standards for many, it remains a largely utilitarian system that benefits a minority of society at the expense of the larger population. Its two outcomes—economic advancement for a few and exploitation for many—are mutually exclusive within our current financial system and cannot be easily separated. Egalitarianism, when applied to globalization is not possible. It is idealistic, even utopian to emphasize the equal distribution of opportunities or advocate for equity across all populations.    

Although hierarchies are a natural part of human order, there is urgent need for compassion and humanity for the workers we cannot see. Everyone should have the right to a dignified existence. Yet, current economic systems neglect an entire underclass of people, ignoring their suffering. This disregard reveals a troubling aspect of our financial systems, where the more ruthless and psychopathic people and corporations behave, the greater they are rewarded. 

In many ways, the word Globalization could be used to describe the imperialistic goals of corporations, organizations, and nations to impose themselves on other geographic areas to increase their power, influence, and profits.

Solutions 

Solutions for more humane and ethical approaches to globalization involve implementing stronger regulations and standards for workers in the Global South. This includes improving working conditions, ensuring fair wages, enforcing better environmental measures, and increasing fair trade practices. Fair trade certifications can help consumers make more informed choices. 

Currently, there is a lack of accountability. Multinational corporations often prioritize profits over ethical considerations, which can result in complicity in labour abuses if they are unaware of or ignore the conditions in their supply chains. Furthermore, these corporations are frequently rewarded for their profit margins, despite these ethical shortcomings. Holding states and corporations accountable means enforcing ethical standards and transparency throughout supply chains. Effective measures include mandatory reporting and third-party audits to ensure compliance, alongside significant penalties for human rights violations. Additionally, fostering a culture of corporate responsibility through consumer pressure and stakeholder engagement can seek to drive more ethical practices. 

If local economies in the developing world had more backing and support from investors, this could also reduce dependency on global supply chains and help strengthen local economies.   

Change is Unlikely 

“My Nike shoes were made in sweatshops in East Asia, my jeans were manufactured by a 13-year-old girl in Bangladesh, the battery in my iPhone was extracted by child slaves in the Congo, and the food I eat comes from animals that died in fear.” 

This is the harsh reality of consumerism. Acknowledging how our products are made and our role as consumers is uncomfortable because it requires confronting the suffering and exploitation of others. In fact, current systems are designed to make it cheaper and more convenient to be less conscientious about the products we choose. It takes a great deal of effort to live conscientiously, so we often opt for cognitive dissonance instead. It is easier to bury our heads in the sand like ostriches, so we distract ourselves and look to pop culture to promote and normalize these choices, watching the next music video of the latest female rapper shaking her ass to distract us from how futile it all feels. We do not address these issues because they are too confronting.  

On a Final Note    

In the West, there is a failure to address how globalization and our economic systems are structured in ways that harm many, benefiting only a minority of our societies. I am not saying globalization is bad per se, and we cannot discount the many benefits that it has had for the working class in consumer nations. However, the lack of accountability by corporate conglomerates and the disregard for the lives and rights of workers in third world nations underscore the urgent need for accountability mechanisms, fair trade, ethical investment and international scrutiny to ensure justice and protection for affected communities. However, under current financial systems, it seems highly unlikely that we will see any change as maximised corporate and financial growth is dependent on the very systems that perpetuate environmental and humanitarian exploitation.