Could Developing Countries Take the Benefit of Globalization?

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Could developing countries take the benefit of globalisation? Rusdy Hartungi
Atma Jaya University, Makassar, Indonesia
Abstract
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

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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...
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