Question

Explain the need for international for conflict resolution.

Answer 1

Introduction

Since the early 1990s, most countries across the globe saw an influx of globalization process wherein they enabled themselves to trade with numerous other countries and trade volumes thus rose to all time high levels.

Over the years, countries such as India, Bangladesh, China etc. which previously were opposed to the idea of globalization for example saw growth rates which even developed nations did not. Job growth took place and companies began expanding their operations into areas which earlier could not have been imagined.

Now, that international trade volumes began expanding, conflict of interest indeed took place. For example, the United States and China Trade War of 2020 is one big example of conflicts which may emerge among international trading partners. Here, the United States believed that China had been given an unfair advantage over the years and thus applied tariffs which it believed would fix the problem for them. However, this further led to a full-blown international conflict of interest which indeed requires mediation or it would lead to economic loss for both parties involved. Similar examples can be given of countries such as India and China, Pakistan etc. all of which have had issues with one another, due to which their economies suffer and one conflict has led to another.

Even though, there are institutions such as the World Trade Center which was established primarily with a view of solving economic international conflicts of trade, yet the need for it has been described in length through the use of this case study which is as follows: -

Case Details: -

Some of the key reasons of the need for conflict resolution is as follows: -

1) Helps in Maintaining Economic Stability: -

When economic international clashes take place between two or more countries, the end result of it is economic instability within the effected regions. The flow and volume of trade among these countries begins to decline steadily. The end result of this is reduced welfare for employees, slow growth and low overall consumption takes place in such economies.

For example, the trade war between India and the United States which largely saw trade tariffs on items such as Aluminium and Steel cost the country both in terms of trade volumes as well as unemployment in the sector.

Negotiations and international dialogue and conflict resolution thus helps in maintaining economic stability between countries and promotes mutual growth.

2) Avoids Malpractices: -

Forums such as the World Trade Organization have provided credible support to patent and copyright violations by one country. The redressal and conflict resolution mechanism ensures that international trade is protected by malpractices and anyone who violates international laws and mutual agreements is punished in a fair manner.

This then translates into a global economy which is fair for all business partners and has allowed for easy regulations to be in place wherein countries negotiate and work for mutual benefit of one another.

3) Important to Maintain Productivity: -

The global framework of the world, has created a world economy wherein products are sourced from one section of the society, produced in another and sold wherever demanded for a price. To maintain this level of productivity negotiation and dialogue and conflict resolution all are important elements.

The US China trade war for an example, has led to reduction in productivity of numerous companies due to the fact that a low-cost manufacturing partner was discouraged over political and economic conflicts between the two countries.

4) To Avoid Centralization of Power: -

Globalization, in its truest form has allowed for smaller countries to become part of the economic growth process. It has enabled a process wherein some part of global growth goes towards smaller economies and they not only contribute raw materials but also add value.

The information and technology industry in India, the production in China, Bangladesh, Vietnam etc. all point out towards the same. In the absence of conflict resolution techniques, power becomes concentrated in the hands of a few countries which is bad for global economics. Protectionism has only resulted in trade volumes being lower, economies slowing down and progress being low for countries.

Therefore, mutual negotiations and conflict resolution is need of the hour to avoid rich countries from holding all power and wealth in their own hands.

5) To Reduce Economic Inequality Within Countries: -

As stated above, Centralization of power is avoided when countries resolve conflict through mutual negotiations with one another. It is to be noted that when countries are in conflict the economics is such that the aggregate demand declines and people are sceptical about trade. It is exactly then that economic inequality among countries rises.

Therefore, it is need of the hour to reduce economic inequality within countries by enabling them to resolve conflicts in an easy manner.

Please feel free to ask your doubts in the comments section.