Globalization- A boon or a curse for developing countries?
List of content:
• Economic definition of globalization.
• What is happening instead of what should have happened?
• Positive effects of globalization with example of China.
• Negative effects of globalization using Jamaican economy as an example.
• Other effects of globalization prevalent everywhere such as poverty, unequal society, violence and environmental degradation.
• Conclusion- so is globalization really good or bad for under developed countries?
Is globalization a boon or a curse to developing countries?
Since the beginning of 21st century, globalization has been the main topic of debate for many economists and general people. So, what makes globalization a very dear topic to all of us and a concern? May be it is the fact that all our lives are so heavily dependent on globalization; be it the oil we export from middle east, the internet that we use on a daily basis or the bananas we export from the Caribbean. We cannot escape globalization in this day and age as it is very integrated in our lives and our surroundings. In this essay I will be discussing the role globalization has played in the developing economies. Has it been a positive effect or a negative one? I will be using Chinese economy as an example of positive effects of globalization and on the other hand, I will use Jamaican economy to support my arguments about negative effects of globalization. I will also be discussing about other effects of globalization such as poverty rate, unequal society, violence and economic degradation. In conclusion, I will be giving my views on whether globalization has really been a positive effect on developing countries or whether it has brought even bigger problems to these countries.
Economic definition of globalization:
So what is globalization? In words of Joseph Stiglitz, economic definition of globalization is different to political definition of it (Joseph Stiglitz- Economics of Information). He says the economical definition of globalization is the closer integration of the countries of the world by lowering transportation and communication costs and also by reducing manmade barriers; hence making the world more closer and integrated (Joseph Stiglitz-Economics of Information). A New York Times columnist Thomas Friedman has gone on to state that the global economic plane field is flat (The world is flat-Thomas Friedman). This is very true. Yes, the world has reduced its trade barriers and through means of cheap transportation and communication cost, it has been able to outsource their businesses. Now, a Japanese company is no longer based only in Japan or other developed countries. It’s been able to open a branch in developing countries such as China where the labour is really cheap, hence making its goods even more competitive in the world market. In Thomas Friedman’s word, the world is flat and there is no such thing such as American jobs; everyone has to and is competing internationally now (The world is flat- Thomas Friedman).
What is actually happening?
According to Joseph Stiglitz, economic theories of globalization says, there will be winner and losers but winners could compensate the losers (Joseph Stigtilz- Sharing the benefits of Globalization). Hence, it was hoped that everyone would be better off. However, this was not the case and the winners were not compensating the poor. When the Seattle riots in December 1999 broke out, economists were surprised as they didn’t understand why people were unhappy when they are actually thought to be better off (Joseph Stigtilz- Economics of Information). When economists looked at this more closely, they realized that people were actually worse off (Joseph Stigtilz- Economics of Information). Economists...