GLOBALIZATION: The whole truth & Half Truths.

Often times, globalization has been defined has a process by which businesses or other organizations develop international influence or start operating on an international scale. Please take note of the word international influence as you read along.

A lot of economic experts have espoused the advantages of globalization to developing countries and how best they can be lifted out of poverty, but truth be told globalization is not the only solution to the eradication of poverty in developing countries. This can be evidently seen in the rising number of people living below the poverty line in developing countries. The question to ask is, has globalization really benefitted the developing countries?, the answer can be found in this article.

When the idea of globalization started, the idea in part was to help developing countries deal with the rest of the in order to increase economic growth and solve poverty problems in their various countries. It was thought that this would be achievable by direct foreign investment from the developed nations, in creating job opportunities for the poor people.

Economic Growth:

It is believed that economic growth is the main conduit through which globalization can positively affect poverty. Even when this is held to be true, we must not forget that corruption in itself must be reduced to the barest minimum if not eradicated. Countries that have lifted themselves out of poverty were able to achieve the feat because they realized that corruption must be defeated first before economic growth takes precedence.

The essence of globalization is global trade amongst nations, but the purpose can be easily defeated if the developed world restricts goods and services from developing nations and in turn hope to capture the markets of developing nations, this can only regarded as unfair trade policy. What researchers have concluded is that, when countries open up to trade, they tend to grow faster and living conditions tend to improve. The general believe is that economic benefits tend to trickle down to the poor. This may be true, but one must not forget that corrupt political leadership in most of the developing countries tend to impede the flow of economic benefits to the poor.

This brings back the possible complicity of the developed world in the level of corruption often found in developing countries. No matter the level of economic success, the poor people will never enjoy the fruits of globalization as these corrupt political leaders in developing world will most times loot the very treasury and commonwealth of their countries and end up stashing such money and properties in developed countries’ economy.

Trade Barriers:

Globalization is believed to be the platform for greater opportunities for businesses in less developed nations to tap into more and bigger markets around the world, the idea being that businesses located in developing countries can have access to capital flows, technology, human capital, cheaper imports and larger export markets. These are suppose to be the what developing countries should enjoy under globalization, but the cold truth in today’s economic global calculus is that, the bigger economies of the developed world have continued to put all sorts of different trade barriers between them and the developing countries. You have a situation where countries are giving subsidies to industries in their own countries, you have a situation where products and services from developing countries are severely restricted and prevented from getting into the markets of developed countries.

Even when goods are allowed into their markets, these goods are slapped with huge tariffs, these developed countries have perfected the way in which all sorts of unfair trade practices are imposed on goods coming into their countries. It is an irony that those who believe that globalization is to advance the cause of poor people in developing countries, see not wrong in placing huge tariffs on good coming from developing countries. For all that has been said and done in relation to globalization, the truth is that globalization is a tool to capture market opportunities in developing world, while they offer protectionism to their own home economy and industries.

TYPES OF GLOBALIZATION:

1.Economic Globalization.

2.Political Globalization.

3.Cultural Globalization.

This form of globalization is what we have just enumerated above, simply put it means developed countries capturing the consumer markets of developing economies, while protecting the economies of developed countries vis a vis huge tariffs and granting of subsidies to home industries.

Political globalization is a tool used to bring developing countries into conformity with whatever agenda that the developed countries hope to impose on the people in developing countries, examples of these can be seen in the activities of world bank, international monetary fund (IMF) and world trade organization (WTO). Research has shown that most of the policies of these organization towards the developing countries tend to have a sort political agenda or at least appearances of that.

Cultural globalization simply means the transmission of ideas, meanings and values around the world in a way to extend and intensify social relations. This is a process that involves the common consumption of cultures that have been diffused by popular culture media and international travel. This may sound noble and ideal, but what are you to believe when most developed countries have draconian visa regime and immigration policies that can only be described as tough against developing countries. If cultural globalization is to be achieved in whatever semblance, the least the developed nations can do is simplify their visa process to enable cultural transmission of ideas.

Take a situation for example, whereby citizens of developed nations hold visa free passports to most countries especially developing countries can easily transmit cultural ideas, the same cannot be said of citizens of developing countries who have to content with vicious visa officers at embassies and consulate in developing countries. I have always believed that the very idea of entry visas to developed countries however noble, is a conspiracy against the developing countries to limit the economic, political and cultural potentials of people in developing countries.

The essence of globalization is the comparative advantage it has, meaning the ability of one nation to produce goods and services at a lower opportunity cost than other countries. This is why globalization is powerful as a driver of global consumption between nations of all capabilities. Then the question is where lies the advantage(s) for developing countries?

Finally, globalization cannot be stopped but it can and should be better……

Globalization’s future is no longer about physical trade, its about knowledge, information and technology. This is more so considering the fact that digital trade already accounts for 12% of international trade.

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