Globalization Effects on the Economies of the Third World

Globalization Effects on the Economies of the Third World Introduction Globalization is concept that has numerous effects on the economic and political systems of any country in the modern world. This means that it affects the growth of the country in a number of ways given the fact that foreigners are allowed to invest freely.Advertising We will write a custom proposal sample on Globalization Effects on the Economies of the Third World specifically for you for only $16.05 $11/page Learn More Research shows that locals would not have any advantage in case they are exposed to similar economic and political conditions with foreigners mainly because they do not have similar financial muscles as compared to foreigners. It is noted that globalization has a number of agents, with technology and multinational corporations being some of them. These agents facilitate the process of globalization by promoting foreign investment. Research shows that multinational corporations give much pressure on governments of the poor stat es to implement some of the defective policies that do not benefit the locals. For instance, they advocate for the opening up economies since it gives them an advantage. Research shows that local companies in the third world cannot compete favorably with multinationals since they do not have adequate capital. Huge conglomerates take advantage of their capital to advertisement goods and services, which is a disadvantage to the local companies. In terms of politics, globalization affects poor states in a number of ways. One of the effects is that the state is not sovereign since it has to consult all actors in the global system before coming with a policy. This proposal suggests a study that would look explore the effects of globalization on the economies of the third world.Advertising Looking for proposal on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Literature Review Existing body of knowledge suggest that globalization has changed the way polices are made in the third world since no domestic and foreign policy is made without the involvement of major stakeholders, which are usually foreign companies and organizations. For instance, states in the third world with large deposits of oil are forced to involve foreign oil companies in designing local policies since they are the major stakeholders. Some foreign organizations are even accused of fueling violence in various parts because they thrive well under hostilities. The problems affecting citizens in Congo serve as an example because American firms extracting resources are known to interfere with peace. Through globalization, it is claimed that public corporations should be privatized to spur economic development. This affects the locals since they lose jobs. In the third, privatization of local companies was identified as one of the things that would encourage development since these firms were making loses. Moreover, they were misma naged since politicians played a major role in recruiting the staff. Privatization of public corporations encourages profit making. On the other hand, private companies are in a position of competing favorably since they are managed professionally.Advertising We will write a custom proposal sample on Globalization Effects on the Economies of the Third World specifically for you for only $16.05 $11/page Learn More Analysis of literature shows that some scholars are against the idea of privatization since it does not promote the interests of the locals in the developing countries. Such scholars believe that public enterprises are able to compete favorably if given support and enough funding. How Globalization Affects Economic Development of the Third World Dollar, D., Kraay, A. (2001). Growth Is Good for the Poor. Policy Research Working Paper, 1(2), 89-98. According to the above scholars, globalization is understood variously implying that it should be anal yzed within a certain context. While some scholars note that globalization has contributed to economic development in the third world, others are of the contrary view. Opponents lament that it is the main cause of poverty hence it should be discarded. Therefore, the views of the above scholars suggest that globalization plays an enabling, as well as a constraining role. Based on this view, globalization is the source of economic development, as well as poverty that is persistent in the third world. Dollar, D. (1992). Outward-Oriented Developing Countries Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-85. Economic Development and Cultural Change, 40(4), 523-544. Countries that restrict trade through tariffs and other forms of restrictions experience retarded economic growth because investors shy away from punitive trade laws. Such states lag behind in terms of economic development. Dollar observed that the living standards of the poor in the third world are on the rise owin g to globalization. In their analysis, globalization boosts economic growth and reduces poverty in a number of countries that embrace it.Advertising Looking for proposal on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The scholar noted further that a number of countries are yet to embrace globalization fully, which is the reason for their persistent underdevelopment and poor living standards among citizens. Such states have closed trade policies that only favor local citizens. Moreover, such countries have weak economic institutions that do not facilitate trade development, resulting to designing of poor economic policies. With globalization, the handling of diseases, such as malaria is very easy. The prevalence of diseases is one of the factors that impede economic development. Due to geographical barriers, the costs of transportation are always high. Therefore, globalization is hailed for reducing the costs of transportation because it supports improved transport and communication networks. Dollar proved through research that even though free flow of trade and investment do not resolve the issues related to poverty, immigration and free movement of people, which are some of the agents of global ization, are perfect solutions to the issues related to poverty. Bain, W. (2003). The Political Theory of Trusteeship and the Twilight of International Equality. International Relations, 17(1), 59-77. Developing countries are unable to attract foreigners due to high insecurity and poor infrastructural development. In fact, Dollar noted that this is what is missing in developing countries, which leads to increased poverty and poor living standards. Globalization has failed to produce its desired results in developing countries because some of the fundamental elements are missing. Apart from defective policies and poor infrastructural designs, lack of government support has resulted to negative effects. The scholar notes that the government has a crucial role to play by ensuring that the country is connected to the rest of the world in a manner that would benefit the common citizen. In the developing countries, this aspect is absent because the government does not play its crucial rol e of creating an enabling environment for individual fulfillment of his or her ambitions. In this regard, the government should always improve the education system. This implies that graduates should be competent in the global market. In terms of information circulation, the populace should be aware of what is happening at the global scene (Bain, 2003). Brett, E.A. (2011). From Corporatism to Liberalization in Zimbabwe: Economic Policy Regimes and Political Crisis, 1980-1997. International Political Science Review, 2(6), 43-58. Brettt (2011) was of the view that globalization presents real opportunities to the developing countries. In this regard, globalization would be perceived as an agent of development given the fact that it helps poor countries rediscover their lost glories. This would definitely reduce poverty and improve the standards of living of the local poor. Globalization demands that countries liberalize their economies by allowing private ownership of property and non- interference in the market. This means that the government should never try to meddle in the affairs of the market because the market is expected to operate according to its own internal logics. Liberalization of trade is just one of the provisions of globalization, which is hailed for supporting the poor. Liberalization gives citizens of any country a chance to engage in economic development without governmental interruption. However, some scholars are against this view. They note that globalization is only meant to bring pain and anguish to the poor, who are already marginalized. Scholars taking a neutral view believe that globalization presents opportunities to some individuals while causing havoc to others. Such scholars utilize the works of Marx to argue that only the rich benefit from globalization because it is simply an extension of the ruling class. In other words, globalization is a tool used to subjugate the poor and push them to the periphery. Political Effects of Global ization Islam, A. (1999). Globalization and Development Revisited in the Light of Asian Experience. Asia Specific Development Journal, 6(2), 1-21. Islam (1999) was of the view that globalization impedes the economic growth of a state largely because of the existence of foreign resources that are prevalent in the financial system. This supports foreign direct investment. Globalization supports the inflow of overseas wealth. This obstructs the autonomy of the state. Through expertise and the idea of intercontinental business, the state is incapable of coming up with policies that are able to offer a resolution to issues affecting members of society mainly because the views other actors are always taken into consideration before formulating foreign guiding principles. This interferes with the autonomy of the state. Technology allows people and capital resources to move rapidly from one state to the other. State borders are no longer respected because restrictions are not good for trade . Governments of the third world countries do not have full powers to control activities that take place in their state borders since business is mobile. Moreover, business corporations are considered major stakeholders in the decision-making processes meaning that they must always be consulted before formulating foreign policies. If policies of the state do not favor multinational corporations, they relocate their activities to other places with sound economic and political policies. This affects the economy of the state because the government loses income that is always generated through taxation. Research Question Does globalization affect the political and economic activities of the developing countries? Globalization is popularly defined as the process of worldwide amalgamation, which is a result of exchange of perspectives, merchandise, opinions, and other aspects of civilization. Globalization exemplifies the relations across cultures, for instance conviction, political affai rs, and capital matter. Globalization can deteriorate and universalize the uniqueness of a local society. Construction of the highways and rail systems, as well as the surfacing of the internet, is the major facet of globalization, which results in interdependence of monetary and cultural activities. This article suggests a study that would evaluate the effects of globalization on the economies and political affairs of developing countries, particularly those in Africa and Latin America. The study would argue that globalization has affected political and economic activities of third world countries in a number of ways. References Bain, W. (2003). The Political Theory of Trusteeship and the Twilight of International Equality. International Relations, 17(1), 59-77. Brett, E.A. (2011). From Corporatism to Liberalization in Zimbabwe: Economic Policy Regimes and Political Crisis, 1980-1997. International Political Science Review, 2(6), 43-58. Dollar, D. (1992). Outward-Oriented Developin g Countries Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-85. Economic Development and Cultural Change, 40(4), 523-544. Dollar, D., Kraay, A. (2001). Growth Is Good for the Poor. Policy Research Working Paper, 1(2), 89-98. Islam, A. (1999). Globalization and Development Revisited in the Light of Asian Experience. Asia Specific Development Journal, 6(2), 1-21.