Atma Jaya University, Makassar, Indonesia
Purpose – To provide philosophical discussions of various works, thinking of globalisations and new thoughts on how the developing countries might take beneﬁt of globalisation. Design/methodology/approach – A wide range of published works, which contain the recent thoughts and debates of the globalisation to developing nations are reviewed, analysed and then critiqued. The authors take some case study examples and evidence from developing worlds, most notably in Indonesia. Findings – At present, the impact of globalisation will beneﬁt mostly to industrialised countries or MNC’s operating in developing countries. Globalisation will bring prosperity to developing world only if industrialised countries and MNC’s are willing to adopt a code of conduct, which permits their proﬁt motives to be harmonised with the self-reliant interest of developing nations. The global rule must be changed in favour of developing countries. Research limitations/implications – Globalisation is a very wide issue. This paper only highlights issues related to trade, labour, intellectual property and environment. Not many developing and industrialised countries are taken as case example. Thus, there are still a lot of further research needed to prove its usefulness. Practical implications – Provide a useful source to the global players like industrialised countries, MNC’s. It highlights how industrialised countries might contribute to assist developing countries to catch up in line with globalisation. Also useful to MNC’s CEO wants to increase their corporate social responsibility. Originality/value – Provide new taught and suggestion to developing countries, MNC’s and industrialised countries. Some evidence, arguments and recommendations have not been discussed in the globalisation debate. Keywords Indonesia, Globalization, Developing countries Paper type Conceptual paper
International Journal of Social Economics Vol. 33 No. 11, 2006 pp. 728-743 q Emerald Group Publishing Limited 0306-8293 DOI 10.1108/03068290610705652
Introduction The impacts of globalisation for developing countries are many. Globalisation has intensiﬁed interdependence and competition between economies of the nations in the world market. This is reﬂected in regard to trading in goods and services and in movement of capital, labour and employment, environment. As a result domestic economic developments of developing countries are not determined entirely by domestic policies and market conditions. Rather, they are inﬂuenced by both domestic and global policies set up by the global community. Globalisation might bring new opportunities to developing countries such as greater access to global markets, accelerate technology transfer from more developed countries, holds out promise improved productivity and increased efﬁciency. However, globalisation has also thrown up new challenges to developing countries like volatility in ﬁnancial market, abuse of labour, environmental degradations, etc. The debates on the beneﬁts of globalisation are ﬁerce. The dispute is focused on the question of whether developing
countries can take the beneﬁt from globalisation. The purpose of this paper is to analyse and to provide a deep insight into the nature of this question. The term of globalisation Globalisation is a very wide term and used in many different contexts in the literature. To give opinion whether developing could take beneﬁt of globalisation requires the full understanding of what the term means to its critics and advocates used in the context of this paper. Financial scholars such as Walker en Fox (1999, p. 2) deﬁne globalisation in international ﬁnance point of view. They argue that the global integration of the ﬁnancial markets can be seen as an example globalisation and the process of ﬁnancial globalisation is the most important part of the...