How Globalization Effects Third World Countries Essay

globalization refers to the slipway in which capital people, information and culture tooshie now give back and forth crosswise national borders with a great peace and greater rapidity than they had before this new phenomenon. Globalization, the information integration of economies and societies nearly the orb, was a word hardly phthisisd only a a couple of(prenominal) years ago and now I doubt if there is a single coarse in the world where globalisation isnt organism discussed. The global spread of the term is evidence that just ab step forwardthing very new is disaster in the world nalwaystheless Im non verbalise this new term is beneficial for all told.This phenomenon has both positive and negative effect on 3rd world countries but in the end it seems the likes of only one party is benefiting, the rich. The poor be thus organism doubly denied their right to feel first when the resources that sustain them atomic number 18 taken away from them in a rid tra de world, and then when the taint and waste of the global economy be unequally and unjustly piled on them. (Global Capitalism p.128)though globalisation has been one of the intimately hotly debated topics in world-wide economics over the past few years there has been some bright sides. Rapid growth and poverty reduction in China, India, and other(a) countries that were poor 20 years ago, has been a positive aspect of globalization. other positive attribute according to Thomas l. Friedman, in his book, The Lexus and the Olive Tree, is globalization increases the incentives for non making war in much(prenominal) ways than in any previous era in modern history.To begin, it is important to let off the meaning of The Lexus and the Olive Tree. The Lexus refers to expert advancement and growth, where the Olive Tree refers to conventional roots and stability. The basic premise of the book is the conflict between the both within cultures, economies, and individuals and how it if possible, at all, to bring the two camps together. (Friedman p.31-34) hardly globalization has to a fault generated substantive worldwide opposition over concerns that it has increased inequality and environmental degradation. The proponents of globalization cite numerous benefits to be gained by underdeveloped countries though greater access to the goods and services that transnational companies can provide. Anti-globalization activists, on the other hand, lodge to many examples in the take in world where globalization has robbed indigenouspopulations of traditionally held land or water rights, disrupted cultural and social values, and confused lifestyles.Problem StatementWhat I intend to examine in this paper is the analogy trend of capitalism in the tardy 19th early twentieth century with the trend of globalization today. Explaining that globalization of the world economy has the emf to bring both great benefit and great mischance to third world populations, but l ike capitalism, globalization without proper checks and balances could become a runaway force, knowing no object lesson or ethical boundaries. though globalization offers extensive opportunities for worldwide development, in my opinion this carry out is not get along withing evenly.I intend to prove that the richest of 225 people in the world take a leak a combined wealth equal to the annual income of the poorest 47% of the worlds individuals. (Joshua Karliner) Countries that bring on been able to ruffle with other nations argon see faster growth and reduced poverty. However, many nations hold back not been so fortunate, especially in develop areas. One in four individuals across the world lives in abject poverty, without access to adequate food, clean water, sanitation, prerequisite healthcare or basic education services.This is both the principal moral issue facing the world as well as the last-place menace to the future security and stability of the planet. Many of tod ays problems, such as war and conflict, trade migration, and environmental degradation are rooted in poverty and inequality.Yet if globalization resembles early capitalism, the scrape of supranational anti-globalization organizations is fount to resemble the early development of trade unions in the western world. While pro-globalization forces still consider these groups to be nothing more than a collection of cranks and misfits, incapable of understanding the global economy, there is growing evidence that these groups are be approach path a force to be reckoned with the subroutine of globalization in like manner has created alliances once thought impossible. At the Seattle protests against the domain trade wind Organization in 1999 and later at anti-globalization protests in Washington, DC, LosAngeles, Prague and Quebec City debt balance activists, Green party members, health care advocates, labor leaders, development economic experts, sacred groups and hundreds of thou sands of young people marched together. (AlterNet par. 2)Interestingly, the same forces that facilitate economic globalization also greatly enhance the abilities of the anti-globalization faction to mobilize against it. greater communication, Internet use, travel, and news program dissemination allow activists about the world greater access to apiece other and greater knowledge of difficulties being faced in ontogeny countries. Of particular interest is the timeliness of the broadcast of information, this sometimes allowing activists to slow or stop projects, rather than just criticize them after the fact. Globalization can also put a spotlight on issues of foreign and local anesthetic justice, giving people access to supporters that was never before available and dowry to advertise problems that in earlier times would never have been picked up by the media. therefore it seems possible that while ontogenesis countries very frequently have governments that actively promote the most ugly aspects of globalization, or are at least powerless to prevent them, the rising tide of grass-roots activism shared out by both the developed and developing worlds may, in fact, be the beginning of an organization with the ability to curb and regulate globalization.In order to have a clear understanding of globalizations impact on third world and the developing world, it is important to understand exactly what globalization means. When discussing globalization many make the mistake of assuming that it is a entirely or even primarily an economic process. However, globalization also has semipolitical and social implications.The International Monetary Fund (IMF) sees globalization as an economic, and as a purely natural stage in human cultural and technological evolution statingEconomic globalization is a historical process and the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, specially done trade and financial flows. The term sometimes also refers to the movement of people(labor) and knowledge (technology) across international borders. (IMF par. 6)The IMF also assumes that globalization, because it is a natural occurrence, is a good thing.From this point of view, the inequalities of wealth and poverty are the result of unequal globalization, and once that full globalization is reached, poorer countries will automatically benefit. The income spreading between high-income and low-income countries has grown in recent decades. But it is incorrectly to jump to the conclusion that globalization has caused the divergence, or that nothing can be done to improve the situation. To the contrary low-income countries havent been able to integrate with the global economy as quickly as others, partly because of their chosen policies and because of factors outside their harbour.No sylvan, least of all the poorest, can afford to keep on isolated from the world economy. Every c ountry should seek to reduce poverty. The international community should endeavor by strengthening the international financial corpse through trade and through aid in order to assist the poorest countries integrate into the world economy, grow more rapidly, and reduce poverty. That is the way to command all people in all countries have access to the benefits of globalization. (IMF par. 48)Objective OverviewMy chief(prenominal) reason for writing this paper on globalization effects on third world countries is because Im from a developing country, Grenada.Though its been many years sine I last visited my country of birth Im still very interested in seeing this beautiful island successfully build up its economy. Also I want to be very much a cause of that development but I first needed to keep an eye on out the normal meaning of globalization and its effects on poverty soft on(p) countries. As well as if globalization is helping or hinder my country as well as other developing nations.During my interrogation Ive gained a better understanding of globalizations cause and effects. The trends of globalization, rapid technological advancements, free trade and emergence of trading communities present challenges to Grenadas developing economy. The Caribbean region as a whole is struggling with the reduction of international aid funds, due to relatively strong performance on the UN kind-hearted Development Index, at the same time that the regions traditionally agricultural based economies are turning to tourismfor economic growth. In my opinion this hasnt been full for my countrys developing process. hoidenish production, primarily of bananas, cocoa, mace, and nutmeg, has historically been the largest sector of Grenadas economy, providing the majority of employment and unknown exchange earnings. However, between 1987 and 2000 agriculture declined from 18.7% of GDP to 9.7%. The sector was plagued by problems passim this period, including the loss of preferent ial trade agreements with the EC, a mealy bug pestis that devastated crops, the collapse of a nutmeg price agreement with Indonesia, and quality control problems that halted all banana exports.For example, Critics point out that not only does the U.N. field depart from standard economic procedures like not correcting for price levels from country to country it hides numbers. Perhaps most egregiously, it compares gaps in income between the poorest and richest countries not individuals. Thus the economic circumstances of the citizens of tiny Grenada are put on a par with those of China, which has a population 12,000 times greater. Mistakes like these completely twist around the record of globalization. (The Rich Get Rich and Poor Get Poorer. amend? allows Take Another Look.)During the months after American invasion, which was beneficial, the mass organizations were dismantled, the labor unions were reorganized, over half of all medical personnel were expelled, enthronisation and tax codes were revised to favor foreign investment, and cooperatives and states enterprises were sold to private interests. Billboards that had stir the population to work for justice, equality, development and national sovereignty were quickly replaced by those designed to inspire them to buy American consumer products. The quality of life for most islanders deteriorated in the period following the invasion despite infusions of American aid.This is why Im very interested in what globalization is doing for developing nations though Im living a better life here Im still concerned in the countries progress. Although Grenadas economy has been expanding, poverty is widespread. Though there is political freedom, the government is cautious and corrupt. And, in this era of neo-liberal globalization, theislands brief socialist experiment is but a fading memory.Lecture ReviewThe Era of Globalization or is fast becoming the preferred term for describing the current times. Just as the Depre ssion, the Cold War Era, the Space Age, and the Roaring 20s are used to describe particular periods of history globalization describes the political, economic, and cultural cash machine of today. (Porter par. 3)Economic globalization is a historical process, the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through trade and financial flows. The term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders. (Globalization little terror or Opportunity? IMF par. 6) I didnt particularly agree with the IMFs take on Globalization but as I further researched the IMFs views I began to understand them.Global free trade has caused worldwide environmental destruction in asymmetric pattern. The international economy is controlled by the corporations of the North who are increasingly exploiting Third World resources for their global activities. (G lobal Capitalism p.113) This is exactly how I feel about Grenada. Resources are being drained but nothing is going back into the country. The Vandana Shiva, generator of this particular chapter in the book, really explains how I feel about globalization in Third World countries she further discuss, It is the South that is disproportionately heading the environmental burden of the globalised economy.Joseph E. Stiglitz states, IMF programs are typically dictated from Washington, and shaped by the short missions during which its staff members pore over numbers in the finance ministries and central banks and make themselves comfortable in five-star hotels in the capitals. There is more than symbolism in this difference one cannot come to learn about, and love, a nation unless one gets out to the countryside.(Globalization and Its Discontents, p.24)He basically is saying the economist sent from the IMF should spend time in the countrys poorest areas not in the developed cities. I agree . He further says, Statistic bear out what those who travel outside the capital see in the villages of Africa, Nepal, Mindanao, or Ethiopia the gap between the poor and the rich has been growing, and eventhe number in short poverty-living on less than a dollar a day-has increased.A headspring was asked of author Thomas L. Friedman in his book The Lexus and the Olive Tree by an Egyptian woman, Does globalization mean we just leave the poor to jib for themselves? he stated, After enough such conversations I realized that most Egyptians-understandably-were approaching globalization out of a combination of despair and necessity, not out of any sense of opportunity. Globalization meant adapting to a threat coming from the outside, not increasing their freedoms. I also realized that their previous ideologies-Arab nationalism, socialism, fascism or communism-while they may have made no economic sense, had a plastered inspirational power.But globalism totally wishs this. When you tell a traditional family it has to streamline, downsize and get with the Internet, it is a challenge that is devoid of any redemptive or inspirational force. And that is why, for all of globalizations obvious power to further living standards, it is going to be a tough, tough sell to all those millions who still say a prayer before they ride the elevator. last(a) StatementsGlobalization has the potential to bring both great benefit and great hardship to developing nations and third world populations. Like capitalism in the late 19th and early 20th centuries, globalization without proper checks and balances could become a runaway force, knowing no moral or ethical boundaries. But capitalism has been somewhat tamed by a system of checks and balances that have grown from a variety of sources, including labor unions, activists, legal restrictions such as anti-trust laws, and such organizations as the FDA and SEC.While many people currently find globalization quite alarming due to its unre gulated environment and the lack of restrictions on multi-national corporations, globalization carries within itself the very vehicle for its own regulation. Although stately international legal entities are still too weak to create lasting and enforceable legislation, the groundswell of public opinion is making itself felt. Internet use is putting activists in the developed world in direct mite with the developing world populations being most affected by globalization.Greater access to international travel allows protesters to be on hand and hear during meetings such as those of the WTO taking place in Seattle. Theexplosion of line of reasoning and online news services has made access to wide varieties of information slow available. Activists and protesters are able to reach investors, and investors are making their views heard through the buying and selling of stock.Just as runaway capitalism seemed untamable in the infancy of the labor movement, globalization now seems too mo nolithic an entity to ever be harnessed. It is possible, however, that the social, political, and legal results of todays anti-globalization activism may provide enough safety measures that globalization can become primarily an agent of progress for all people. Whether this will happen in time to save developing countries from being socially and culturally overwhelmed, it is too early to say.BIBLOGRAPHYPorter, Keith. What is Globalization? Globalization Issues. About.com. Nov. 2002 http//globalization.about.com/library/weekly/aa080601a.htm.World Bank. Poverty in an Age of Globalization. Oct. 2000 http//www1.worldbank.org/economicpolicy/globalization/documents /povertyglobalization.pdf.Alternet.com. Globalization Overview. Nov. 2002 http//www.alternet.org/issues/globalization.html.Countries from A to Z. Grenada. The US Invasion of Grenada (2003).http//www.atlapedia.com/online/countries/grenada.htmhttp//www.globalpolicy.org/empire/history/2003/10grenada.htmKarliner, Joshua. The corpo ral Planet Ecology and Politics in the Age of Globalization. 1997. Sierra familiarity Books.Longworth, R.C. Globalization Survey Reveals U.S. Corporations Prefer Dictatorships. GlobalExchange.org. Nov 19, 1999. http//www.globalexchange.org/economy/econ101/survey.htmlInternational Monetary Fund. Globalization Threat or Opportunity? Apr. 12, 2000. http//www.imf.org/external/np/exr/ib/2000/041200.htm.Hutton, Will and Giddens, Anthony. (2000). Global Capitalism. The red-hot York Press, wise York2000.Stiglitz, Joseph E. (2003). Globalization and Its Discontents. W.W, Norton & Company, Inc.,500 Fifth Avenue, New York, N.Y. ISBN 0-393-05124-2Friedman, Thomas L. (1999,2000). The Lexus and the Olive Tree. New York Farrar, StrausGiroux ISBN 0-385-49934-5Postrel, Virginia. (August 15, 2002).The Rich Get Rich and Poor Get Poorer. Right? Lets TakeAnother Look. New York Times