Globalization Essay
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The word globalization can be defined as the world greatest and most important force, which has an impact on economy (Mostert, 2003). In some cases, globalization can again be regarded as a whirlwind of basically relentless changes, which sometimes can leave most governments helpless and full of economical problems.
In actuality globalization, globalization has contributed to economic developments in most developing countries, which are also regarded as the founders of globalization and its implementation. In my own opinion, I hold the view that the globalization process is more beneficial to developing countries than it is to developed countries.
It is ’s clearly evident that globalization has done more good in terms of development specifically in developing poor countries. In actuality, the concept of free trade liberalization has created a favorable scenario where those who possess a lot of capital are able to disburse to those who don’t have in form of wages and salaries.
In the real sense, the wage, be it exploitative or not, will at least raise the productivity or development of the individual persons earning it. It is clear that in many poor developing countries, there is access to cheap labor and various types of natural resources (Horwitz, 2010).
This attracts international firms to do business in such regions, based on this trend, for instance, we can already see how globalization is beneficial to both developing countries and developed countries. This is because developing countries benefits from increased job opportunities etc while developed countries benefit from cheap labor and resources.
The fact that more western countries established more and more companies in the developing countries was expected to believed will help accelerate their profits by taking advantage of the available as a result of the availability of cheap labor and the presence of natural resources found in the developing countries (Horwitz, 2010).
On the other hand people in the developing countries count on the development as a rare opportunity for improving infrastructure and general development in the country. In addition, the local citizens are also able to gain free knowledge and skills when working for companies owned by developed countries. Even though the wages given you are is considerably low, it had a greater impact on the citizens of developing countries who have used it to boost their living standards (Horwitz, 2010).
Furthermore, it has been postulated criticized that the developed countries would become poor when using their capital on investments in developing countries but the investment of these funds was necessary to spur further growth of the developing countries (Curran, 2010).
This strategy while it has facilitated growth in developed countries because of the generated huge profits has enabled these countries to quickly grow experience accelerated growth and also catalyzed proportional economic growth in developing countries.
I posit believe that even though the developed countries are exploitatively using the developing countries for acquisition of cheap raw materials and labor, I strongly support the fact that in at the long run, the beneficiary would be the developing country since these countries would have remained undeveloped for decades if it were not for the globalization revolution.
This is because, out of the mutual relationship perceived to exist between the two parties, citizens of the developing countries also benefit from wages, formal knowledge, and experience that they gains which they continue to apply in their local context.
The more free trade continues to exist between the western and developing countries, the more the third countries country keep benefiting from the relationship. This has enabled heavy investments setups to be established in the third countries by the rich western firms.
However, it remains true that the truth is that no matter how the rich western firms improve on their profits making, most of their money in at the long run is again spent back to fund more investments or exploration for better technology most of the time in the same developing or undeveloped countries (Horwitz, 2010).
Those who refute this claim argue that as far as the western countries (who are always considered to be highly developed, and the first world countries) keep on investing more and more of their money pumping millions of their money on investments in the developing countries, their interest rates still appreciate they still appreciate their interest rates and they are also able also have time to explore and improve on new technological developments (Curran, 2010). This opposition can be considered to be factual.
However, only that it is not strong enough to counter counsel the fact that, the more as far as the developed countries continue to invest and expand their trade boundaries through investments, the more the citizens of the developing countries benefits. This is because they will benefit from this contact with the first world be informed of new things reducing their level of primitivity through the formal and technological knowledge, as well as the and practical skills that they gain.
While I don’t wish to claim that This hardly means that the developed countries don’t are not benefiting as well., The proportion of their benefit however is not as much as that gained by the developing countries because they mainly benefit in terms of cheap labor and raw materials as we have already seen
Additionally, as a result of globalization, free trade has managed to promote international peace since it is obvious that countries trading together have got a mutual interdependence, which reduces cases of global conflicts. Opponents of this idea counter strongly oppose this argument, although there are some countries though by positing that even though some counties are being good trade partners, they are perpetually involved in conflicts mainly over right to resources (Curran, 2010).
In addition to this, some developed countries, due to hunger for raw materials, will opt to fund rebel groups within the developing countries so as to destabilize their governments by causing chaos and security instability within the country which will give them the opportunity and thus gain free access to exploit such resources. A good example of such a situation is currently happening in the Democratic Republic of republic of Congo in Central Africa.
But after reviewing this argument, certain weaknesses in its formulation become evident. I totally disagree with this argument For instance, given that globalization cannot be solely blamed for this form of conflicts. Historically, before globalization came into the picture, there were many civil and religious wars taking place between communities in the developing countries.
In fact, one might be tempted to argue that the emergence of globalization has actually reduced the rate of such conflicts if the present trend is anything to go by. For instance, because of globalization, interregional trade was established., This free trade and interaction between countries has promoted mutual friendship which has in turn and this has greatly reduced the former incidents of war between countries.
Through globalization many developing countries have gradually increased their wealth and accelerated modern development. This is because of free trade and accessibility of loans, which has resulted in to economic growth in most developing countries. As a result of economic growth, citizens of developing countries can now easily access funds to finance modern facilities and systems of education to reduce illiteracy.
Those who are against this idea considerably agree that globalization has brought increased rates of economic growth. However, their argument point at inequalityies in development as a result of trade among many nations. The rich countries, for instance, set up trade laws primarily to benefit themselves. them only Partly due to these laws, citizenry from third world countries continue to experience worsening economic conditions. such that only the poor people who will be left out worsening their situations; this is partly true (Curran, 2010).
The richest countries are claimed to be the ones more involved in open global economy, which is quite unfair for the poor countries, which have been sidelined. The western countries use openness as a methodology employed to boost their economy at the expense of poor and developing countries.
A recent research by Oxfam revealed that most developing countries embrace openness as a trade strategy ies copied from western countries yet they end up being poor or have achieved very little. The best example of such a scenario is being Haiti, which who threw open its their economy and is are the most poorest country is in the world (Curran, 2010).
This is because of poor interpretation of the word openness, which has two meanings. It either refers to economic outcomes on imports and exports or it can also refer to the government policy of opening up and increase the exportations (Curran, 2010). To a certain extend extent, this argument can be considered to be true but one must also understand that the policies of the developing countries and politics also contribute to this outcome.
But globalization has also benefited most developing countries in terms of trade. The formal trade systems established in developing countries by the western countries have made many local countries to abandon their indigenous systems of trade. For example, barter trade was abandoned when countries crossed their boundaries for internationally trade. It is in such venues, where most developing countries developed international friendship.
As a result, they benefited from loans rich countries since and banks were all willing to guarantee the developing countries’ loans because trade goods from developing countries could be used as collateral (Lowry, 2010). As a result, the people’s living conditions have gradually improved, including better salaries to the locals and also promoted international peace.
Thus, we can see how trade can be a powerful tool for spurring prosperity and poverty reduction. Nevertheless, the current trade rules set up by western countries are very unfair; this is because, these is trade rules have been deliberately designed as a tool to oppress the poor and developing countries for the benefit of the developed countries. It is unfair to claim that trade is free yet all the rules have been rigged up only to benefit western countries (Curran, 2010).
For example, a poor African coffee farmer will at no time bargain with a big European coffee conglomerates over world coffee prices; This is a case of a buyer dictating the price at which they will buy instead of the other way round. As an effect of globalization, it is only the rich who benefits from these is trade rules and for it to work for the poor, then it must be made free than it is currently (Curran, 2010).
Free trade is always considered to be necessary but not sufficient for the countries’ development. One of the most progressive projects in the human history 200 years ago was the attempt to completely open up the whole world to free trade as this would empower anyone to have free access to goods and people’s services anywhere even in developed western countries (Horwitz, 2010). Such policies really enabled most people to best use their local knowledge towards their individual benefits. In At the long run, many people from developing countries have been the greatest beneficiaries; this is so because third world countries are always considered to be behind in terms of development.
According to the World Bank “further integrations into the world markets, better functioning of the internal markets and the rising demands of many commodities,” are some of the economic growth being experienced by most developing countries as a result of globalization (Lowry, 2010). In summary, it is evident that most developing countries are taking advantage of developed western countries, which are through with their economic development to seek for technological support and modern systems of medical treatments.
As a matter of fact, globalization reduces the rates of mortality such that a lot of resources can be availed to fight some of the most killer diseases that burden most developing countries. International friends will also be available to help reduce mortality rates in the developing countries whenever there is a disease outbreak through humanitarian initiatives, which are concepts of globalization (Hoffman, 2010). This further shows how globalization has benefited the developing countries most.
According to Lancet, the main substantial proportion cause of deaths among many infants is malnutrition. that states, “When a developing country gets more and more wealthy, it automatically depicts that citizens there will be less likely to be malnourished” (Lowry, 20101). Furthermore, the wealth will enable the government to improve on infrastructure, increase access to clean water, medical facilities, and practice good sanitation. This means there will be few cases of diseases, malnutrition and the mortality rate will be highly reduced (Lowry, 2010).
On the other hand it is not logical to claim that, where there is wealth there is no death since malnutrition for instance is not the only cause of death as there are many other genetic complications, accidents, parental carelessness and other diseases like AIDS which can cause death.
But since poverty is the biggest cause of deaths increased income will always empower people to seek better treatments and medical checkups. Money will also enable one to access clean water and balanced diet, which are some of the preventive strategies used globally to reduce disease prevalence.
Based on the evidence that we have so far reviewed here, it is clear that globalization while it has benefitted developed countries has principally benefited developing and developed countries. Indeed, it is only with the advent of globalization that major strides in economic development has been able to be achieved by majority of countries world over, majority of which were in the category of the poorest countries.
Curran, D., (2010). Globalization does not benefit developing nations .
Hoffman, M., (2010). Job losses and perceptions of globalization. Journal of wWorld tTrade . 2010. 44 (5): 969.
Horwitz, S. (2010). Globalization benefits developing nations .
Lowry, R. (2010). Globalization is good for the poor of the world .
Mostert, J. (2003). The impact of globalisation on developing countries, 35. Proceedings from ESSA conference 17 –19 September 200. Somerset West . Web.
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