How Has Globalization Impacted the Developing World - Research Paper Example

?Running head: How has globalization impacted the developing world? What are some of the advantages and disadvantages? How can the disadvantages be lessened? Give examples. Insert Name          Insert Grade Course Insert Tutor’s Name 21 February 2012 Outline Introduction How has globalization impacted the developing world The advantages of globalization on the developing world The disadvantages of globalization on the developing world How can the disadvantages be lessened Globalization Introduction Globalization can be defined as the movement of goods, capital, people, and skills to economic integration, which is driven by the increase in trade and investment. The sharing of goods, services, and skills has improved technology worldwide; this interaction among countries leads to integration. Beer & Koster (2009, p.106) emphasize that globalization involves increased cross-border interactions. The developed nations are likely to gain huge profits from investing, especially in developing nations; as a result, the level of poverty is reduced in the developing nations. Mostert (2003, p.1) adds that globalization is one of the vital forces that impacts on the economy of a nation; however, it is capable of leaving both cultural and environmental problems as it progresses. Globalization presents both opportunities and challenges; it leads to improvement of international trade, technology progress, greater outsourcing of businesses among countries, and greater mobility of human resource among other benefits. Some of the challenges include economic and social costs, as well as the increased interdependence of countries. Therefore, nations must be keen on adopting policies that increase benefits and minimize challenges associated with globalization. This research paper will focus on the positive and negative impacts of globalization on developing countries. The paper will conclude with the solutions for the negative impacts pf globalization. How has globalization impacted the developing world? Mostert (2003, p.2) emphasizes that globalization increases integration globally, and as a result, opportunities for increased growth and living standards are guaranteed. In addition, globalization extends the process of regionalism by diminishing the borders and regional block between countries. The developing countries face the positive as well as the negative impacts of globalization; for instance, the attempt of Britain to improve the Asian countries economy yielded to skewed distribution of income between the developed and developing nations. Financial problems contribute to an income gap between developed and developing nations. Nevertheless, those countries that have embraced globalization tend to grow fast compared to those countries which protect themselves with barriers. In addition, the nations that had a faster economic growth have managed to improve their citizens’ living standards by reducing poverty levels. For instance, India has managed to cut its poverty level by half over the past two decades, while China reduced its rural poverty from 250 million in 1978 to 34 million in 1999 (Global Education, 2011). Needless to say, globalization can be a solution to the problems faced by the developing nations, especially in Africa. Mostert (2003, p.13) adds that globalization affects the developing nation’s labor so that it can lead to high levels of employment in these countries. In another argument, globalization may contribute to unemployment in developing countries as a result of competition among these countries. The demand of low-skilled workers in the developing nations is likely to reduce as a result of technological development that is propelled by globalization. Indeed, there is an increase in demand of skilled workers as a result of technological advancement. Mostert (2003, p.14) adds that globalization also leads to the reduction in bargaining power of workers, and this is evident because of the border that exists between countries, resulting in limitations in labor mobility of workers. In developing countries, the employment impact of increasing trade depends on the interaction between productivity and growth. Lee & Vivarelli (2006, p.6) add that when a country embraces foreign direct investment (FDI), it may benefit from impacts of FDI that include employment via job creation. Poverty alleviation should be one of the main objectives of globalization, especially in developing nations that have many individuals living below poverty levels. Globalization improves economic growth, which reduces poverty; however, FDI is the main driver of economic growth, which leads to poverty alleviation (Lee & Vivarelli, 2006, p.13). Bigman (2007, p.49) adds that globalization has led to the reduction of poverty in developing nations such as China, which was hardly hit by high poverty levels in the 1970s; however, today, China has managed to minimize its poverty level. In addition, globalization has contributed to increased global income, therefore increasing the foreign direct investment; as a result, improved growth has been achieved in many countries. Improved wealth arises from the impact of globalization, which has improved clean water and health care access, and therefore increasing life expectancy in the developing nations. Trade liberalization enables the developing nations to be more competitive, while labor-intensive jobs are generated especially in agriculture and manufacturing; as a result, incomes for the poor increase. However, globalization creates interdependence of developing nations, which results in their vulnerability of economic problems (Global Education, 2011). In addition, some developing countries are at risk of income inequality because of globalization. In addition, the wage gap between the educated and illiterate continues to grow. Generally, the effect of trade liberalization on inequality is influenced by a country’s comparative advantage in exports, agriculture, or the level of improved education. For instance, in Latin America, especially Mexico, the poor are mainly concerned with food production and less concerned with education, and therefore, there is inequality in education and income (Birdsall, 1999). Despite trade liberalization effort to increase income, inequality still exists due to poor education and capital intensive policies, rather than the existence of job-creating policies. Therefore, developing nations face risks associated with globalization. However, minimizing and managing these risks is vital in order for the developing nations to benefit fully from globalization outcomes. Nevertheless, globalization has impacted the developing world positively through knowledge transfer, and negatively through growth of inequality. The advantages of globalization on the developing world Globalization provides new opportunities for the developing nations, enabling these nations to access global markets and benefit from technology and skills transfer. Globalization has also managed to reduce the level of poverty, and to some extent, it has created employment and introduced technology advancement. According to the Food & Agriculture Organization (2004, p.100), globalization can assist in the improvement of skills of the developing nations via technology advancements and capital flows. Needles to say, globalization increases free trade between nations, and as a result, these nations benefit from new skills and technology. Globalization also intensifies competition and interdependence among different nations. Here, trading of goods and services and movement of capital is evident in globalization. Moreover, globalization allows individuals to participate in international trade without having to travel, mainly due to technological advancements; for instance, computers and internet, which enable individuals to communicate via video conferencing, or chat messages. In addition, before the advent of globalization, the developing nations were not able to trade across border due to trade barriers. Therefore, they were left behind economically and their poverty levels kept rising. Globalization brought about foreign investments that have since created jobs for the citizens of developing nations. In addition, economic growth brought about by globalization has led to improved life expectancy for the poor. This is as a result of improved health care services and sanitation that have prevented diseases mainly through vaccination. The improved economic growth also guarantees advanced education, and as a result, the levels of illiteracy in these countries are decreasing. Increased flow of information enables information sharing between individuals and organizations worldwide. As a result, the developing nations are in a position to learn from the developed nations through tapping of knowledge or knowledge transfer. Globalization also yields to increase of global income and reduction of investment barriers, and as a result, foreign direct investment increases (Global Education 2011). Greater environmental awareness and accountability have been implemented, which fosters less emissions of carbon dioxide, and use of renewable substitutes. Costs have also reduced due to technological advances; for instance, individuals can communicate via instant phone messages, and through the internet social services such as Facebook, Twitter, My Space, and Google among other services. Therefore, the intense competition of these services lead to lower prices for consumers. In addition, globalization has led to international migration; as a result, cultural awareness is evident today. Spread of culture is brought about by globalization, and as a result, cultures embrace individuals from other backgrounds, thus enhancing learning of various customs, music and art styles, language, and cooking techniques. The disadvantages of globalization on the developing world Despite the benefits brought about by globalization, the developing world faces numerous challenges. Some of the challenges include the growing inequality among the developing nations, environmental deterioration, and the volatility that exists in the markets. In addition, some of the developing nations had been left out from the process of globalization until the 1990s. Globalization is mainly determined by industrial performance of nations; however, the challenge of under-development continues to rise, making development to be achieved at a slow pace. In addition, globalization leads to technological advancement, and as a result, the low skilled employees lack employment, as the developing nations seek for skilled labor. There exists inequality brought about by globalization such that not all developing nations benefit from globalization; China and India are some of the countries that have grown fast because of globalization, unlike most African countries, which continue to suffer from poverty. The developed nations assist the developing countries; however, this support comes with strings attached and as a result, these developing nations are exploited. In addition, globalization leads to the increase of disease in the developing nations. Trade among countries entails traveling, and therefore, bird flu or HIV/AIDS are likely to spread to the developing countries, thus reducing life expectancy. Nevertheless, globalization is associated with environmental degradation mainly due to the over-use of natural resources resulting from high demand of these resources. Global warming is also related to globalization; this is because of the continuous emission of greenhouse gases due to overreliance on fossil fuels. In addition, the mode of transportation is advancing in the developing nations, and as a result, the rise in automobiles has increased, leading to high emissions of carbon dioxide. Nibambi (2001, p.2) further adds that globalization has encouraged the trade of illicit drugs, human trafficking, pornographic materials, and prostitution, especially in the developing nations. In addition, brain drain is evident when the skilled professionals such as doctors from developing countries migrate to developed nations making the developing nations to suffer from labor shortages. How Can the Disadvantages Be Lessened Globalization is commonly metaphoric, and it is normally described as a two-sided coin; this is because of its nature, which is associated with benefits as well as disadvantages. The negative impacts of globalization can be minimized via reducing the trade barriers in order to foster international trade (Kasapidis, 1999). In addition, globalization should be regulated by laws, which will enable fair operations in the developing nations; as a result, the developed nations will not be in a position to exploit the developing nations. The World Trade Organization (WTO) can play a vital role in the promotion of an international trade regime, which will be capable of prioritizing the needs of the developing nations (ESCAP, 2000). In addition, regional trade arrangement can enable the developing countries to integrate in the global trading system. Facilitation of trade in the developing countries will enable efficiency of trade and investment in these countries. Regulation that protects the environment should be emphasized on mainly because globalization has effects on forests, air, and water. With the existence of globalization, the demand for goods has increased, and as a result, deforestation is evident, while carbon emissions and water pollution are rising. In return, the public suffers from global warming and water-related disease among other consequences. The penetration of illicit and harmful products in the developing countries can be solved via the increase of revenue receipts, which involve automated and transparent trade procedures. Such processes prevent fraud and corrupt practices in these countries. Globalization is advantageous for the developed nations because of the existence of equal competition, as opposed to the unequal trade practices that exist in the developing nations; for instance, India cannot compete with the United States. Due to globalization, the gap between the rich and the poor keeps widening so that the rich continue to get richer at a faster rate than the poor. However, WTO should implement laws that caution the developed nations from exploiting the developing world. In addition, health professionals in the developing nations must ensure that globalization should lead to more healthy outcomes as opposed to unhealthy ones. Conclusions Globalization is involved with the movement of people, goods, skills, and capital among different cultures. In addition, globalization provides opportunities and challenges. Needless to say, the developing nations benefit from fast economic growth, which impacts the countries’ health services, educational services, and employment opportunities. For instance, since India adopted globalization over two decades ago, its poverty level is halfway reduced. Creation of employments has led to the increase in income levels, and as a result, life expectancy is increasing due to affordability of health services. However, globalization is associated with some negative impacts; the continuous growth of globalization creates demand for natural resources and as a result, deforestation and high carbon emissions that could lead to global warming are evident. Water and air pollution is also evident, as well as inequality in wealth, which creates a gap between the rich and the poor. Nevertheless, the World Trade Organization can offer solutions, which will maximize the benefits and reduce the negativities of globalization. Trade barriers in developing nations can be eliminated and regional arrangements implemented, which will integrate developing nations in the trading system. Moreover, strict measures on exports should be implemented to avoid penetration of unethical materials such as pornography and corrupt practices. References Beer, P., & Koster, F. (2009). Sticking together or falling apart: Solidarity in an era of individualization and globalization. Amsterdam University Press Publisher. Birdsall, N. (1999). Economic development, economic growth, and international trade; Carnegie endowment for international peace; Globalization and the developing countries: The inequality risk. Retrieved from http://www.econ.yale.edu/alumni/reunion99/birdsall.htm. Bigman, D. (2007). Globalization and the least developed countries: Potentials and pitfalls. NY: CABI Publishing. ESCAP. (2000). Economic and social commission for Asia and the Pacific policy issues for the escap region: Development through globalization and partnership in the twenty-first century. Retrieved from http://www.unescap.org/56/e1158e.htm. Food & Agriculture Organizations. (2004).Globalization of food systems in developing countries: Impact on food security and nutrition. Rome: Food & Agriculture Organization Publisher. Global education. (2011). Globalization. Retrieved from http://www.globaleducation.edna.edu.au/globaled/go/pid/178. Kasapidis, R. (1999). The Opportunities and dangers of globalization. The science of art. Retrieved from http://itech.fgcu.edu/&/issues/vol2/issue1/global.htm. Lee, E. & Vivarelli, M. (2006). The social impact of globalization in the developing countries. IZA Discussion Paper No. 1925. Retrieved from http://ftp.iza.org/dp1925.pdf Mostert, J. (2003). The impact of globalization on developing countries. Retrieved from http://www.essa.org.za/download/2003Conference/MostertJ_The%20Impact%20Of%20Globalisation%20On%20Developing%20Countries.pdf Nibambi, A. (2001). The effects of globalization on the state in Africa: Harnessing the benefits and minimizing the costs. United Nations General Assembly, Second Committee. Retrieved from http://unpan1.un.org/intradoc/groups/public/documents/un/unpan001978.pdf Read More