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Globalization: Developmental Boon Or Bane?

Years earlier, globalization was the inquisitive "buzzword" which was seen with much optimism by a lot of the world, including the poor and underdeveloped countries. The merging of the world's economies promised great opportunities for expansion and development specifically for UNDER-DEVELOPED economies. Today, there are two prevailing sentiments on globalization: either that globalization has resulted to prosperity for the poor nations or which it has resulted to the prosperity of the abundant at expense of the world's poor (Irogbe, 2005). This paper posits that while globalization have provided a variety of benefits for underdeveloped countries, the wheels of globalization has led to the widening poverty gap, the deterioration of nationwide economies, marginalization of the South, ethnic homogenization, and environmental degradation.

Main Features of Globalization

Globalization is a intricate process which has many facets: monetary, political and ethnical. To comprehend this more concretely, discussed are the primary features of globalization from the perspective of the expanding world and exactly how it is concretely manifested. Looking at globalization from a UNDER-DEVELOPED lens is crucial to our understanding of it (Yotopoulous & Romano, 2007). This is because, when seen from the point of view of the First World, it is easy to appreciate numerous great things about globalization. For example, globalization has allowed Americans to get hold of a wide range of products and services from all over the world. The margining of the world's economies have allowed us to enjoy goods recently inaccessible to us because of high cost: for case, fruits such as pineapples, bananas, and mangoes that is not homegrown in america. We can listen to world music, Africa, Jamaican, Latin American, and Arabic rhythms through our ipod touch all day long. What's not clearly visible to us is the way the wheels of globalization impact the farmer in Southeast Asia, the coffee growers in Latin America, and the agricultural workers in Africa.

Economic integration

While faster interconnected through advanced technology and transportation is the most popular idea about globalization, globalization is a fundamentally economical phenomenon. The financial offer of free trade and free competition was supposedly designed to help UNDER-DEVELOPED economies to gain market access recently impossible to penetrate (Lechner & Boli, 2004). It has been true. Underdeveloped countries have been able to export their local products to developed markets unlike before (Sen, 2000). However, the bigger picture suggests as a result of inherent asymmetries of the world's economies, globalization also contributes to asymmetrical development - benefitting the abundant countries more than the poor (Yotopoulous & Romano, 2007).

Economic integration through the merging of the global economies takes on three primary varieties: liberalization, privatization, and deregulation (Benyon & Dunkerley, 2000). Liberalization is "the downgrading of the social goals of countrywide development, combined with the upgrading of participation on the globe market" (McMichael, 2004, p. 158). This is achieved by minimizing and eventually removing the barriers to flow of goods, capital, and services among countries, e. g. the removal of tariffs on agricultural products such as corn, rice, or meat. Deregulation means the reduction of the reduced amount of the role of governments in regulating trade and creation and in providing services (Yotopoulos & Romano, 2007). It adheres to the belief that the market is the most efficient and effective determinant of what should be produced and what would be consumed. Privatization in its purest sense means divestiture of state-owned enterprises or SOEs (McMichael, 2004). What used to be an ideological battle between "big government/welfare says" and "more marketless status" has moved in to the mainstream financial development debate under the guise of sensible monetary management and "good governance" (Benyon & Dunkerley, 2000, p. 45). A deregulated market free of the visible palm of administration is the most effective, less burdensome system that will lead to economic progress through foreign investments, so will go the debate. Economic pragmatism and expediency are the main motives for privatizing today, driven mainly by balance-of-payment imperatives and the need to alter the "burden of development" from the general public to the private sector (Leeds, 1990).

To drive these three key strategies of monetary globalization, two main corporations are responsible: the world's transnational organizations (TNCs) and the triumvirate of general public international finance institutions (Buckman, 2004). The global TNCs keep tremendous influence in global trade because it has control over investment, occupation, and trading decisions which surpass the decision-making power of most growing countries. The triumvirate of the the International Monetary Finance (IMF), the earth Bank, and the earth Trade Business (WTO) act as a global overseer of the processes of financial globalization (Benyon & Dunkerley, 2000). Theoretically, the triumvirate could be held responsible by the world's governments however in practice, it has become "a major global bureaucracy wielding tremendous, largely unaccountable influence" (Buckman, 2004, p. 87). The global privatization network includes multilateral and bilateral lenders, large MNCs, vendor banks, stockbrokers, accounts and management consultants, legal companies, marketing, specialist consultants, and think tanks (Leeds, 1990). The TNCs control the lion's share of the world trade. The best included in this, "act more cohesively, in close cooperation with their respective governments, to assault or protect marketplaces" (Bello, 1997, p. 5). Hence, globalization also means the most powerful competition even among industrialized economies. For example, the United Sates and the business interests it represents stands to gain the most from globalization, which is why it has attempted to dominate both GATT-WTO and the APEC (Benyon & Dunkerley, 2000). While imposing unilateral steps to protect its own market, the US is trying to prevent other countries from operating just as by invoking the principles of free trade. On another planes, many Northern governments, despite the neoliberal ideology of minimizing the role of the state of hawaii in economic issues, still heavily subsidize their agricultural products. These then become very cheap and when dumped into the markets of developing countries, local products cannot compete. This clarifies why farmers in Chile, Latin America, South Asia, and Southeast Asia have experienced destruction of the local economies such as in textile, carry, and even agriculture (Bello, 1997; McMichael, 2004).

Political marginalization

Globalization has also resulted to the political asymmetries resulting in the marginalization of the South. Globalization has proceeded under the premise that modernization is the main element towards the original development of the 3rd World. However, the dependency theory of development suggests that modernization will only lead to increasing domination of the major world financial players to the detriment of the indegent nations. The basic decisions in global trade remain influenced by the prominent countries, leaving dependent nations with few choices because the variables have been establish by the ex - (Willis, 2005).

It is in the South where globalization as a politics process really reduces the role of the country state in terms of deciding the course of development through macro-economic plans. Parallel to the is the "qualitative strengthening of the establishments of global monetary governance" (Bello, 1997, p. 8). The primary mechanism because of this has been your debt snare, whereby highly indebted countries are compelled to endure structural modification programs (SAPs) in trade for more lending options. The infamous SAPs of the IMF, and so-called "development" loans from the entire world Bank routinely include harsh conditionalities that require developing nations to get away from important home programs that provide the population. Included in these are education, health services and environmental programs, which don't produce revenues to repay IMF and World Loans or interest. This system leaves countries utterly dependent after market and costing systems over that they have no control. Meanwhile, they have got given up the ability to determine their own destinies. The greatest unknown of course is how the promoters of such rules and conditions (amongst others) could possibly argue that these rules may help nations grow from poverty. Obviously, this is a blueprint for dependency and poverty creation.

Cultural homogenization

Globalization is a occurrence that crosses and erases physical and political borders and makes all countries begin to look the same. As a result of globalization, local products, services, and cultures go away into a worldwide culture, a culture identified not by the global citizenry but rather the world's financial and politics superpowers - mostly North America-owned organizations. Due to globalization, people on every continent face and consumed with a North American 'culture' described by Nike jogging shoes, MTV, Coca Cola, and McDonald's. Some individuals have re-named the process of globalization and called it McDonaldization or CocaColonization.

Not only does indeed globalization create one bland culture around the world, it forces visitors to organise their lives to promote this culture. Poor Filipino farmers wrap up having off their land and into factories producing jogging shoes and camcorders for North Americans, Brazilian rainforests are demolished to make room for massive meat farms producing hamburgers which will be used by the world's richest people. Because of its focus on companies' usage of the free market, globalization has resulted in an increase in the distance between rich and poor. The world's poorest people have experienced deepening poverty while the incomes of an extremely few wealthy people, have soared. The appearance of the net has raised a number of democratic choices. However, its decentralised composition has averted business and the multimedia from increasing control over it. Numerous attacks against people and organisations take place every day on the Web; taking action against them is not a simple task. Although there's a great deal of insecurity on the net, that does not prevent people about the world to use it for their orders and their marketing communications, since it is a more democratic and less managed marketing (Cohen & Kennedy, 2007).

Conclusion

The implications of globalisation for a countrywide economy are many. Globalisation has intensified interdependence and competition between economies on the planet market. That is reflected in Interdependence in regards to trading in goods and services and in movements of capital. As a result domestic economic advancements are not determined entirely by local guidelines and market conditions. Rather, they are affected by both local and international policies and economical conditions. It is thus clear that a globalising overall economy, while formulating and assessing its domestic plan cannot manage to ignore the possible actions and reactions of guidelines and developments in the rest of the world. This constrained the insurance plan option open to the federal government which implies lack of policy autonomy somewhat, in decision-making at the national level.

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