Effects of Globalization on Developing Countries

Effects of Globalization on Developing Countries

Globalization refers to a process of economic, social, and political integration. Because of globalization, the world is a global village where sharing of information is instant regardless of where you are. Borders between countries continue to break down to allow strong interconnection and interdependence of economies. In the second half of the 20th century, it was apparent that national borders were an obstacle towards economic development, forcing countries to embark on weakening the barriers through international integration of their economies. While this trend affects everyone on the planet, the effects of globalization on developing countries are far-reaching.

Importantly, globalization is playing a pivotal role in the Third World. In particular, globalization is shaping politics, promoting technological development, enhancing economic processes and improvement of social, health and the natural environment. Today, third world countries enjoy endless opportunities because of globalization. For example, international trade remains a booster for most of these economies, as they are markets for developed nations and get chance to export their products to the global market. However, besides these, globalization is too sided. It is leading to unemployment, widening income inequalities and cultural imperialism among other negative factors.

PROS AND CONS: Effects of globalization on developing countries

In discussing effects of globalization on developing countries, it is important to focus on economic and social integration is helping or harming communities around the world. This approach is essential because what America considers the value of globalization could be harmful to Asia or Africa.

The first effect is improved standards of living for millions in the third world. In particular, with globalization, governments of developing countries have access to foreign lending. When they channel these funds to improving transport infrastructure, healthcare systems, irrigation, education and other social services, the standards of living go high. However, in case this money does not serve the right people, it may breed corruption and entrenched poverty in developing countries.

In addition, globalization has opened up new markets all over the world. With lessened borders, developing countries experience freer trade between countries. This promotes economic growth as homegrown countries see barriers fall and expand their market reach. Manufacturers in the third world are seizing this opportunity by exploiting new technologies and producing new products to meet a global demand for their goods and services.

Globalization also promotes technological growth in developing countries. Today, third world countries are connected to the rest of the world through Satellite and cable. In other words, these countries are part of the global culture, where the world is speaking the same language, embracing the same fashion, following social media trends and keeping pace with the dynamic world of technology.

A summary of Negative Effects of globalization on developing countries

Globalization is not very rosy for developing countries. In fact, it is a double-edged sword. As the First world enjoys endless benefits of integration, the effects of globalization on developing countries are harming economies in different ways.

For example, the ever-increasing income inequality gap in developing countries is of major concern. Even with massive influx of multinationals and foreign capital, this has the potential of creating disparities between the educated and the illiterate. In the long-term, the education levels in developing countries will increase and more people access job opportunities. However, in the meantime, some of the poor people in the third world are becoming poorer. The bottom-line is that not everyone is taking part in the elevation of living standards.

Sadly, globalization is causing unemployment in developing countries. It is true that the influx of foreign investors in the third world has created numerous jobs especially for casual laborers. However, technology is a threat to millions of jobs as it spreads into the domestic market. Agricultural and manufacturing sectors suffer the wrath of globalization as technology lessens the need for casual and unskilled labor force in these sectors. Therefore, the challenge is for developing countries to have plans in place to train the unskilled force in order to mitigate the raging effects of globalization. From this analysis, it is clear that the effects of globalization on developing countries are debatable as they harm and better the lives of people in poor nations simultaneously.

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