Imagine that, Japanese food being served in a German town (driven by tourism) in Australia! Globalisation at its best. A couple of months ago I was a tourist in Australia, Adelaide, Hahndorf. A small German settlement that was established in the 1880s. German settlers came to Australia for a better life. And just over a century later, here I am taking a picture of a Japanese food outlet! Although Hahndorf has morphed into a tourist destination, it was simply amazing how far globalisation has come.
No collateral, no Loan!
The early German settlers of Hahndorf bought land to farm. Thereafter, profits were either used to repay debt or buy more land! To some extent, it is similar to giving out loans to those with no collateral. Now, where have we heard of such instances? Ahh yes, India! Well, similar loans should be granted to those who need it the most! Yes, of course there will be those who will evade payment, but that is where social capital comes in. Social capital (not in terms of education) can form implicit contracts, such that foregoing repayment will incur social consequences which outweigh the benefit of foregoing debt repayments.
From Farmers to Tourism.
From being farmers and within the Agricultural sector for a good century, it was time to push forward for revenue flows. The farming sector would be overrun by larger companies that are able to produce efficiently at lower costs. This would inevitably push prices down and cause others to exit the market. This of course poses a dilemma for our little German town!
However, hope is not lost, because the town can sell their history and tradition! The non-tangible intrinsic value of history and traditions in Hahndorf made the place a tourist attraction. A key feature is its geographical location, which allows easy access from the city centre (approx 1 hour drive). Travellers, backpackers international students and even locals go there every week to try traditional German cuisine (and Japanese cuisine…)
Globalisation: Icing on the cake or worm in an Apple?
There is a vast amount of information on the Globalisation argument. Commenters say it is good for the world and we should strive for more globalisation. Adam Smith’s “Invisible Hand” will drive the correct market mechanisms and transferrable capital and financial markets will bring efficiency to every corner of the world. Critics argue that it has driven the divide in income disparity. The case of Handorf is an excellent example of how globalisation has kept the town on its feet. Yes it had to open its doors and be open to change, but according to Marlows hierarchy of needs, it is all about survival.
Overall, it is a very subjective topic and it really depends on the circumstances of those being affected. There is no correct answer, it just depends which side of the stick you are on! Go to Handorf and see the thriving businesses that fill the streets with lights and life. But, also see 3rd world countries where loosened trade barriers have seen their resources taken away from them.
So the question is, which side of the stick are you on?