Effects Of Globalization In Developing Countries
Globalization is a controversial subject in the world today; there are different debates and talks on its effects in the world economy and international politics. There are various debates on whether globalization is real or not (Unger, Para. 4). The main objective of this paper is to find out the effects of globalization in developing countries.
Stallings (para.2) observes that globalization is a many-sided topic encompassing many disciplines, he says that it does not only include economics but also other disciplines such as politics and social studies, this multi diplomacy approach gives various definition to this controversial subject. In my case I will not try to define what globalization is but give a brief explanation of globalization. The economic globalization is happening due to the development in technology leading to connection of all parts of the globe, the reduced cost of transportation and the intentional efforts of many countries to create integration in the international economy. Thus I can say globalization is the summative result from the decision by different countries in the world to integrate their economies with the global economy.
From the above explanation we can deduce that the extent to which the country experiences the effects of globalization depends on the level of restrictions on the movement of products and factors of production, like labor, into the country and out of the country. Hence a country with few restrictions can be considered to be more integrated hence experiences more effects of globalization. Looking at the world trade trends today many countries are removing trade barriers and restrictions. This is through the regional integration in trading blocks. There is removal of tariffs on goods moving between different countries. The world is gradually becoming a free trade area as the countries are practicing a more open economy. In this paper will look at both sides of globalization i.e. negative and positive effects of globalization to the developing countries.
Emma (Para. 3) notes that globalization has led to loss of sovereignty in many developing countries. She says that the world governments have come up with institutions like World Bank IMF and WTO which have developed super national governance policies which are used to deal with the world affairs. In this case I truly agree with her because the developing nations at many times are affected negatively by world decisions made by the developed countries to favor their interests. Looking at the voting patterns in the matters affecting the world we will realize that the developed countries decisions subordinates the decisions made by the developing countries. Apolo (Para. 7) on this matter says that the poorer the country the weaker it is in influencing the decisions of the international agencies. This has led to erosion of sovereignty in developing countries.
According to Apolo (Para. 3), globalization has resulted in undermining of democratization process in developing countries; he says that instead of developing countries being given the freedom to handle the decisions on the democratization policies affecting their countries the major decisions are imposed by their developed partners. He adds that the irony in the whole democratization issue is that some of these developed countries imposing these policies are not democratic. Countries in the world whether developed or developing should be left alone to make decision on governance issues affecting them, this enables countries to develop in-house democratic institutions that are accepted and respected by all the citizens. This argument can be supported by the issue of liberalization and privatization in the African countries, the World Bank through the Breton woods institutions introduced the infamous Structural Adjustment Programs (SAPs) these programs affected the countries economies negatively. This shows that globalization has undermined the democratic space of developing countries in decision making, an indication that there is inconsistency in the way these world bodies preach on the need for democracy and how they make some policies of immense consequences.
Hoang & Liano (para.6) on their paper argues that globalization results to exploitation of labor in the developing countries, they argue that because the developed countries have immense capital strength which they invest in big companies and multinational they take advantage of cheap labor in developing countries. This is portrayed by the fact that there is free movement of labor between the world countries hence workers move from their mother countries to go and work in developed countries. There is also the issue of foreign investment, this is where the developed countries puts their investment in the developing countries and use the cheap labor in these countries. The other factor is the multinational companies which makes huge capital investment in the developing countries and develop the policy of international sourcing of labor and raw materials. All these foreign investment in developing countries results in repatriation of profits on this issue. Hoang & Liano (Para. 5) says that globalization has slowed the speed of economic development of the developing countries due to the labor and resource exploitation by the developed countries. According to Apolo (Para. 6) globalization has led in brain drain because it has opened country boarders for free movement of professionals, this problem is mostly in developing countries of Africa where some of the qualified personnel run away from their countries to developed countries to get employment due to poor economic conditions in their mother countries. Some of these countries don’t get remittances from the expatriates working abroad due to lack of good financial policies.
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good post~~well done!
Its actually a nice and helpful piece of info.
Garbage, regurgitation of liberal lies! Almost every Eonomist on the planet would disagree with this article. The average income increases, the availability of education is increased and access to competant healthcare and healthy food is dramatically increased. This fanatical hippie view that living in dirt, covered in dirt, and eating dirt is always better for the people is preposterous. Many countries and peoples have greatly benefited from business investing in their markets.