Globalization and the Least Developed Countries: Potentials and Pitfalls, by David Bigman - Book Report/Review Example

Globalization and the Least Developed Countries: Potentials and Pitfalls, by David Bigman: A Book Review Globalization and the Least Developed Countries: Potentials and Pitfalls, by David Bigman discusses the nature of poverty and the problems and opportunities that the world has to offer where an ever increasing globalized world is imposing upon cultures, but also bringing possibilities for economic growth. One of the worst problems is the division between the wealthy and the poor and the way this is impacting prejudice. Bigman states that “The rise in inequality is most visibly manifested by the accumulation of wealth in the hands of a narrow corporate elite and the super-rich, and by the growing gap between the LDCs (Least Developed Countries) and the developed countries” (xiii). In discussing the problems associated with the development of nations to enter into the economic globalized world, he is highly critical of the developed nations and their imposition upon LDCs through disguising economic take over in the form of free trade. Through the exploitation of resources and labor, large corporate entities are rising like monsters against the innocent villagers, creating an oppression that is disguised as freedom. The issue of poverty is contrasted to the power of globalization of corporations, in that high levels of wealth have been made but that the world still has approximately one billion people in poverty, most of which reside in LDCs, particularly the sub-Saharan area of Africa and in Asian nations which includes countries such as Vietnam and Bangladesh. While intending to discuss the positive and negative aspects of globalization, Bigman makes it clear that the overall result of globalization has been to see a rise in the division between the poor and the rich, thus creating deeper and more disconcerting poverty that is affecting populations by stripping their resources and labor, while not providing them with the resources to advance in return. The arguments that are presented by Bigman are defined by the rise of economic powers over the decline of ideological political power. Through an examination of the changes that have occurred in the structure and the methods of organization of world trade, the dominance and “monopolistic power of transnational corporations” is shown to have created a change from economic dominance by the United States and Europe to a more globally distributed position of power which now include China, large Latin American countries, and India, with Russia to soon join that grouping. In examining the future potentials, which include both positive and negative aspects, the book provides insight into the impact on LDCs through the new world order that has evolved through the emergence of a global economic structure. The changes that have emerged through globalization are that “globalization not only revolutionized the structure and methods of production and communication and transformed the lives of millions around the world, but also ushered in a new era of evermore rapid changes both in the methods of production and in the organization and management” (Bigman 2). This will have an effect on every member of the world, thus creating a shift in the structure of human interaction and cultural collision. Bigman contends that the changes in the relationships that cultures are now developing with one another will have an impact, raising the standard of living of many populations throughout the world. As some populations are brought into the fold of higher standards of living, many others will see a widening gap between the rich and the poor, greatly increasing poverty and devastating local economies that cannot or do not well adapt to the globalization process, which will be located in LDC regions. Another type of evidence that Bigman presents is that while on paper the economic theories of free trade and globalized economies work well, in reality the nature of the development of free trade on a global basis has resulted in some less than ideal circumstances. While it is intended that free trade should create a raise in the level of income throughout all populations, the realities of this ideal have not come to pass and have actually raised the poverty rate, rather than the average level of income. One of the main criticisms that creates a problem where globalization is concerned is that there is a debate between rules and discretion, as to whether there should be rules imposed on governments or if they should be allowed the flexibility of discretion. Bigman quotes D. Rodrick for the concept that the imposed rules have different effects in different countries, while discretion can also lead to corruption. In LDCs the power of the ideologies sometimes create closed trade relationships, where larger economic powers will have more open trade, thus creating imbalances and providing for ineffective use of the global economy. The nature of the solution suggested is that of ‘policy space’ so that LDCs can work with the global economic structures through experimentation in order to find the best possible policies for their nation (Bigman 17) Overall, Bigman is critical of free trade. Citing the work by Stiglitz and Charlton, Bigman states that the benefits of free trade that were expected have yet to be realized. He believes that nations that kept trade closed until now should be rewarded, where larger nations such as the US that had free trade should not be rewarded at this time. In defense of globalization he cites that programs have emerged that can help in developing the nature of the economic entry by LDCs into the world markets, but that they often do not adequately address the issues that the regions are experiencing. In trying to create an environment of free trade, often emerging nations are exploited rather than elevated by the process, providing for the deterioration of the way of life, without the balance of the benefits. The homogenization of the world has created a series of lost cultures, and some have benefited from the advancements through technologies and increased production and material benefit. However, in some nations this has not been the case. As resources have been stripped, the benefits to the indigenous populations have been at best minimal, with many areas of the world no longer able to sustain life as it had once been lived, thus increasing poverty. Despite the attempt to be even handed and to report on both the positive and negative effects of globalized economies, it is clear that Bigman is not in favor of the course of economic expansion and that the casualties of this event have been too high. Through explorations of the different aspects of the topic, the conclusion to the situation seems to rest on those who have been adversely affected, the attempts at opening trade up throughout the world having to harsh an impact on the LDCs. In creating a world in which the rich have all the power and where ideological intent is being circumvented by monetary considerations, many of the high poverty rated regions of the world are losing what ground they had gained through history and are experiencing higher poverty rates. Thus, the expansion of markets is not giving the intended result, the theory working much better than the practice. In the end, it is the cultural losses that are having a high impact on LDCs where the way of life is interrupted by expanded markets as resources are stripped, but replacement is not provided in order to elevate the local population. Through governmental support and allowing for discretions that provide better assessed need fulfillment for the local population, it might be possible for emerging economies in LDCs to lower the rate of poverty and to raise the standard of living for those populations that are falling through the cracks in the system. In allowing for regional controls on trade, the global economic system may eventually benefit all. Works Cited Bigman, David. Globalization and the Least Developed Countries: Potentials and Pitfalls. Wallingford, UK: CABI, 2007. Print. Read More