Globalization and Localization

Globalization refers to an advanced stage of development where capital, technology, labour, raw materials information, transportation, distribution and marketing are integrated or interdependent in a global scale. It is the flow of technology, knowledge, labour and capital across the border of the country. It is actually the process of integrating social, economic and cultural activities of the people of the world due to the advancement in science and technology. Liberalization, privatization and deregulation in the economic activities of a nation are the prior conditions for globalization. It is the process of adjusting national economy in the world market by limiting the role of government.

The concept of globalization was developed in 1990s after the end of the Cold War. It is the product of democratization, privatization, human rights, freedom, and expansion of market and so on. The concept of globalization was first started in developed countries and transferred to the developing countries later on. The causes of globalization are as follows:

Amicable relation among the countries of the world after the end of the World War-II.
Development in the field of transportation and communication.
Expansion of the wave of democracy all over the world.
Establishment of the UN and the World Trade Organization.
Expansion of knowledge.
Media revolution and consumerism.
Change in the mode of production of goods and services.
Limited government and increasing role of private sectors.
Birth of multi-national and transnational companies having more economic capacity than that of national government.

The effects of globalization is more in the developing countries than in the developed countries. These countries have increased in market access, technological advancement and resource mobilization. Globalization has both advantages and disadvantages which are as follows.

Advantages

The developing countries are able to increase their economic growth rate by reducing poverty and balancing their trade.
Knowledge about political, cultural, economic and social life of developed countries has transfered through radio, television, internet, satellite, mobile phone and air service.
Diversification in trade, balance in payment, flow of capital, increase in foreign investment, enhancement in the capacity of labourers and development of free trade due to development in technology.
Due to high competition in the price of goods, the people in developing countries have got opportunity to consume goods and services at a cheaper price.
It has contributed a lot to maintain peace and order by removing misunderstanding among the countries of the world.
Improvement in the living standard of people due to the flow of goods and services.
Increment in employment opportunities due to foreign employment and multinational companies.

Disadvantages

The people of developing and under-developed countries are less benefitted than that of developed countries.
Deterioration of local culture, tradition and rituals due to the impact of foreign culture.
Dependency on economy and decrease in the feeling of nationality and patriotism.
Lack of skill manpower in developing countries due to brain drain.
Increase in drug smuggling, illegal selling of weapons, social displacement and fear of epidemic diseases.
The presence of multi-national companies has increased the gap between rich and poor due to inequalities in access to resources.
The developed countries have directly or indirectly imposed their opinions and principles in the developing countries. As a result, they have lost their freedom.
The developed countries, in the name of globalization have exploited the resources in developing countries through the establishment of multi-national companies.
Climate change, global warming, terrorism, etc. are also the products of globalization.

Localization

The concept of localization was introduced to grasp the opportunities created by globalization. So the concept of localization is not the concept introduced against globalization but it is parallel to globalization. The “Localization Industry Standard Association” defines localization as- “Localization involves taking a product and making it linguistically and culturally appropriate to a region or a country where it will be used and sold.” Nepali dictionary has defined localization as the administrative decentralization. Actually localization is to limit particular products or service in a particular place. It is to highlight the production of particular goods or service as an identity of that place. For example, Palpa is famous for Dhaka cloth in Nepal. Localization emphasizes in the conservation of local culture, art, costume and rituals of a place. It also encourages the perspective, opinion, desire and thinking of local people. The objective of localization is to make the access of information technology at local level and develop the society based on knowledge. It focuses on relating the modern inventions with local skills and technology to retain the identity of local culture, norms and values.

The concept of federalism has increased the importance of localization in Nepal. It gives emphasis on the direct involvement of local people in the governance system, flow of service at a local level and for economic and social development. In reality, localization is for the conservation of local culture. The United Nation Organization has given emphasis for localization while designing Millennium Development Goals. The effect of localization can be mentioned as follows.

Positive Aspect

Emphasis for the development of backward community.
It represents people centred development.
It opposes external interference and promotes nationality and patriotism.
It focuses in the promotion of local culture, tradition and rituals.
It discourages foreign goods and services at local level.

Negative Aspects

It creates barrier in the flow of internationally renowned goods and services.
It focuses only in the development of small and limited area.
It can make particular community more extreme towards their culture and tradition.
It does not allow local products to be supplied in the international market.
It does not emphasize for holistic development but thinks only for the development of particular geographical region.