International Award


What factor pushes the globalization?


Today one of the most discussed themes in the world is a globalization. Though many famous thinkers had serious discussion on it and tried to explain problems and perspectives of the new world from one approach but there was a silence in Azerbaijan about it for long time. Centre for Civil development – Globalizing Azerbaijan ( could perform considerable works in this area.

Our today’s conversation with co-chairman of the organization Anar Asadli will be about these matters.

- According to information you plan to publish 5 books as being Centre for Civil development – Globalizing Azerbaijan. All books will be dedicated to investigations analyzing the process of globalization from different aspects and tasks of our state in this direction. In general, what do you think, is it necessary to be protected from globalization or to be prepared for it?

- Basic principles of our organization in self answer to this question. Any non-controlled globalization can damage the society. It means that by understanding the globalization as one process which develops out of our will and which can not be controlled, we have to be prepared for it seriously. To be protected from globalization can take any society to isolation from modern achievements of the world. On the other hand, coming of the globalization is inevitable process. The best way is to be ready for it. But a lot of works are to be done in Azerbaijan either in education, or economy or other fields for this purpose.

- How would you evaluate possessing of Azerbaijan cheap labour force from point of view globalization? Or can one compete globally with cheap labour force?

- Companies of North America and Western Europe meet with difficulties to compete fast developing countries last years. One of principal causes of this event is the difference in the cost of the labour force. Service and production companies of China, India, Japan, South Korea etc as a result occupy more parts of the world markets gradually. For instance, to approach to Europe market, these companies invest huge capitals in Eastern European countries.
For the purposes to withstand to the competition, world giant companies reduce the number of workers in the expensive countries gradually or change the strategy.
If today ten thousand taxpayers of the US hire accountant from India and if one American from NY calls to IT company for troubleshooting in his computer and if answer comes from Bangalore of India, it has just one reason: Because it is cheap.

Today 245 thousand operators in the India meet the demands of lot of telephone calls coming from four corners of the world. Or another example. 2300 journalists of Reuters news agency works in 197 bureaus actively in the world. Reuters which prefers economical news more had chosen Bangalore city of the India as private headquarter and began some operations here instead of New York. Today about thousand Indian researcher and journalist work in the bureau. Known cause again: wages in Bangalore are below! Because if one analyzer in New York or London is to be paid annually 80 thousand dollars, but in Bangalore just about 15 thousand dollars might be enough.
But Azerbaijan still has less opportunities to benefit from it. Because Azerbaijani can not boast with his level of education and intellect at global labor market. It is necessary to confess that Azerbaijan is not ready to present knowledge era completely and it has less opportunities for competition.
Cheap labour force is not a factor that can provide high competitiveness in the long-term perspective. From this point of view India prepares to the future better than China. But Azerbaijan being a small country cannot get supremacy in competition in cheap labour force either now or in future. We can just gain proper competition conditions by preparing high qualified specialists with high potential creating capability, according to demands of information era, thanks to education.

- At present we observe accelerating of merging and acquirement processes among big companies all over the world. How would you comment it from point of view of globalization?

- Globalization is process having economic, political, cultural, technological, military and legal results. Such merging and acquiring activities is a result of vast spreading of globalization process. Together with globalization over-national, over-state entities are emerging.

For recent period to get human force, possessing and carrying knowledge, turned to the main objective of company merging. Further purpose is to settle a problem of protection of brain force and keeping it inside the company. But such mergers are not always successful. I want to direct your attention to result of one investigating. It became known that in such cases 47 % of high ranking staff of the company leaves it within one year after merging and 72% within three years. It is reason is appearance of “cultural differences or to speak wider” “incompatibility to cultural atmosphere”. But it is impossible to expect high performance, knowledge from specialists which cannot get necessary motivation in this case.

Besides, atmosphere surrounding the company, political, economical, social, psychological etc factors have own influence. That is how the people and state treat the mergers, if there is hostility against foreigners, if trade unions are strong, what are belief norms, etc.

Acquirements and mergers are successful in knowledge firms. Because the most diffuse conception in such firms is the culture of preferring the science. This inside firm culture gives endless thinking independence to staff. Because there is no exact method on how the knowledge will be acquired, how it will be managed, what conclusion will be made from it? This is a cause of different working capability of staff working in firm, in knowledge area. That is why the working capability culture is replaced with personal working capability culture in these firms. May be we can call it as micro working capability culture. Indirectly merging and acquiring among knowledge companies id more successful, if to base n this logic.

- How do you look at matter of invitation of such companies in Azerbaijan? What preparations must be carried out for this purpose?

- Globalization stays as one reality in front of firms and countries. Already risk sharing, desire to use new opportunities created in different markets had turned firms to multinational companies. But acquirements and mergers appear at result of more effective and rational activity. But though over 100 states have anti-monopoly laws, but this law had good performance in very few countries and some countries it is gradually implemented in practice. Presence of various anti-monopoly laws in various regions in acquirements and mergers appeared at result of globalization shows it influence. Even in USA and EU, where most developed anti-monopoly laws are available, there are differences either in terminology or in self of law. But in some cases protecting own interests by parties have caused a prevention of merging of some companies, though it was not against the anti-monopoly laws. When looked from prism of globalization either one general anti-monopoly must be prepared in the world that all countries agreed with it or cooperation among anti-monopoly laws should be worked out. The first offer is far from reality because of political problems and for the purposes of protecting of superiorities of the countries. But cooperation may be seen as a reality. From this point of view it is necessary for Azerbaijan to consider the anti-monopoly law.

On the other hand there is a need in acceptance of the Law on “Agitation of the investments” answering to demands of the day in the country, carrying out necessary changes in Labor Code, settling by our education system the shortage in such firms.

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