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GLOBALIZATION AND ITS EFFECTS ON THIRD WORLD COUNTRIES Introduction Globalization is the hottest and the most discussed topics of the last decennium. Globalization is a relatively new term used to describe a very old process, it begin with our human ancestors, moving out of Africa to spread all over the globe, in the millennia that has followed, distance has been largely overcome, trade and human barriers have been lowered or removed, and this has in a way facilitated, exchange of goods and ideas. Propelled by the desire to improve one’s life and helped along by technology, both inter-connectedness and interdependence have grown. Although throughout history adventurers, generals, merchants and financers, have constructed an even more global economy, yet today’s unprecedented changes in communications, transport and computer technology, have given a new impetus to the process of globalization. According to one popular view, globalization is the inexorable integration of markets, nation states and technologies, to a degree never witnessed before in a way, which is enabling individuals, corporations and nation states to reach the world, further, faster, deeper and cheaper than ever before. To quote “Bilton et al”: Globalization is the process, whereby political, social, economic and cultural relations, increasingly assume a global scale, which has profound consequences for individuals as well as their local experiences in everyday life . Globalization is often used in a positive sense to denote a global village of free trade, hi-tech marvels, and all kinds of possibilities that transcend class historical experiences&ideologies. .
2 TYPES OF GLOBALIZATION/ GLOBALIZATION: VARIOUS DIMENSIONS OF
Globalization is a process to create a more open world, in many areas, some of which cover politics, economics, law and media. Vast corporate empires, compliant governments and a globalized, consumer monoculture; coupled with a universal ideological commitment to corporate libertarianism, are the driving force, accelerating the era of globalization. Globalization can be looked at from 5 different aspects viz, Economically, Technologically,Politically,CulturallyandEnvironmentally. Globalization&Politics: Political globalization means that the countries worlds wide are supposed to act multilaterally, and share and carry out the similar values and principles of, peace and human rights. Globalization and Its Effects on Economy: In Economics, globalization largely comes down to free trade and an open market, between all countries world wide. Under globalization (all countries) are supportive to open their borders to foreign products and not to protect their own markets, Primary goal of globalization is to afford everyone get a better deal which would ultimately come out to be quite beneficial to the third world countries. Who might somewhat tend to benefit from it. Economically globalization has been greatly encouraged since World-War II.GATT ,and certain other regional trade agreements ,have been developed ,and this has in a way ushered an era of free trade agreements ,leading to a surge in single market systems .
3 ROLE OF TECHNOLOGY AND TECHNOLOGICAL GLOBALIZATION: The information technology revolution has thorough faxes, e mails, and the internet. Resulted in, massive improvements in systems of communications This I.T revolution has been instrumental in making the world become a smaller place, thanks to immense innovation in IT, now world interaction is both quick and easy. B.P.O (Business process outsourcing), and L.P.O (Legal process outsourcing) are the most important trade innovations, that have been introduced by globalization.
Cultural Globalization Culturally globalization has been spread through, the media of films, television and music. For e.g. : Following second world war, U.S.A, Fearing the rise of communism, actively encouraged and subsidized, the world wide distribution of films, effectively advertising the (a) benefits of capitalism( b) and the American dream ,as a consequence to the dilution of culture .
Impact of Globalization on Environment Environmental problems are increasingly becoming global problems; therefore countries are no longer able to look at the environmental issues in isolation. This concept has been dramatically illustrated by instances such as: the nuclear disaster at Chernobyl, and instances of depletion of ozone layer and acid rain over Scandinavian countries. It has now made several countries, to realize that, they now need to act collectively, as collective efforts are in fact the only chance for (a) reversing or (b) slowing the damage being caused to environment.
4 ILLUSTRATION: In light of the above discussion, relevance of globalization in the modern era can be explained by means of an interesting illustration of the world converting into a global village. It is this very phenomena of globalization which makes it possible(a)for a gargantuan ship(b)built in Netherlands and registered in panama (c)to bring Saudi oil to(d)Texas refineries, that provide gasoline(e)for cars assembled in Japan and Korea (f)Wherein German drivers, wearing clothes sewn in Singapore, from Australian cotton(g)might be listening to an Argentine tenor, singing Italian arias,(h) recorded on a magnetic cassette made in Mexico (I) being played on a tape deck, assembled in China (j) in another car ,the driver might be using a Finnish cell phone ,to tell a broker in New York, to buy stocks in a Canadian company, that does business in Brazil ,this is exactly how the world has been converted in to global village .
WHAT ARE THIRD WORLD COUNTRIES Historical Background: The cold war in its course, spawned, many third world rebellions, and thereby, affected many small world countries. Cold War: After the II world war, there began an era of a cold war, between the U.S.A and Soviet Union, the two super powers of the world. Their differential views on government and politically correct society were, the main reasons for the conflict .This confrontation of ideologies, divided the world into two main power blocks, leading to the categorization of the countries in to first, second and third world countries. First world countries: Countries which, associated with U.S.A and other of its non–communist allies, came to be known as the first world countries. Second world countries: While on the other hand the countries supporting communism, and allied with U.S.S.R, came to be referred ass second world countries.
5 Third world countries: Third world countries ,comprised of those countries, which did not have any association, with either first world or second world countries , In fact these were the countries ,which remained neutral, and were neither inclined towards the first or the second world countries . Composition of the third world countries The third world countries comprise of the whole of Africa ,Asia ( apart from Soviet Union ,China ,Japan ,Latin America and Oceanic islands of: Australia and NewZealand, consist of third world countries. CHARACTERISTICS OF THIRD WORLD COUNTRIES: Lack of money in the third world countries, means that, people of Latin America, Africa and Middle East and Asia, live very differently to those living in countries such as England and U.S.A... Lack of money in third world countries, restricts development in various areas and causes great increase in diseases ,it also stops people, from getting nutrition, that they so desperately require .Thus in a way ,advanced western countries are capable of influencing and do influence tremendous ,economic ,social and political pressures on third world countries . Characteristics of Third World Countries Developing Countries: Most of the third world countries are generally, developing countries. • • Densely Populated: Majority of the third world countries are over –populated, this is also amply evident from the fact that these third world countries comprise of the, Two – Thirds of the world’s total population . Our very own country India as a matter of fact supports 14% of the world’s population on an area as less as only 2 % of the world’s total land area. Majority of Third World Countries are Poor: A majority of the third world countries are extremely poor, and are engulfed by a multitude of socio-economic problems; people of these countries are extremely poor. Hunger and disease are quite common, to most of these areas.
6 • Poor infrastructure and lack of basic amenities are basic problems which plague these countries .Lack of basic amenities and poor sanitation further aggravates their problems.
HOW HAS GLOBALIZATION HELPED THIRD WORLD COUNTRIES
POSITIVE EFFECTS OF GLOBALIZATION: Globalization has often been used in positive sense. It has been used to denote a global village of free trade and hi –tech marvels, it in a way signifies all kinds of possibilities which transcend, class, historical experience and ideology. Different people view globalization in different ways; some view it as a process which is inevitable and beneficial to future world economic development. Globalization has been instrumental in increasing free trade, it has also been useful an international exchange of labor and information technology, in short it represents a beneficial process of economic development. Even though, extreme opponents charge it with impoverishing the world’s poor, enriching the rich and hold it responsible for, devastating the environment, yet despite all these opposition, fervent supporters still see globalization as a high speed elevator, to universal peace and prosperity. The technological development that characterizes the past two decades, has been instrumental in triggering a communication enhancement around the globe, and has made the inter-connectedness between the global populations far greater. Globalization effects, just about everything and every one locally, globalization has impacted technology, and has in a way helped our communities, become more updated, by encouraging active internet usage and communication. Benefits of Globalization, which have been ushered on the Third World Countries are as follows: • • • Globalization tends to inter-connect the whole continent into culture and values. It allows labor opportunities and enables labor standard up gradations for third world countries. Globalization encourages an international open entrepreneurship, which shall be instrumental in providing more substantial product diversity, from immense to modest local consumers.
7 • Business outsourcing :out sourcing of businesses ,has been another achievement for globalization , So as to remain competitive B.P.O’s (business process outsourcing )and L.P.O’s(legal process outsourcing),have begun to outsource jobs, this in turn has facilitated the creation of a vast pool of jobs ,and has led to subsequent employment, for e.g.:B.P.O tide encompassing the Indian jobs markets, has in a way increased employment in such third world countries. Globalization encourages better competition and competitive prices: local businesses due to globalization see an increased availability of products to, purchase from, all over the world, this in turn increases the opportunity of finding variety of goods at a better and far more competitive price.
Note Globalization over the past 20 years has become a key issue in many countries. The industrialization of the second and the third world countries , by western civilization, creates many opportunities for the inhabitants ,not only does it expand trading markets, but also promotes productivity and efficiency, thereby improving the country, and integrating it into the industrial world . This process not only benefits third world countries, but also industrialized nations, who on being by allowed to export goods to developing world, are able to increase their profit margins. East Asia and Latin America, seem to have benefited from globalization, globalization has also helped third world countries in maintaining stability and production output.
HOW DOES GLOBALIZATION HARM THIRD WORLD COUNTRIES INTRODUCTION: Globalization is a confusing concept for some it conjures up images of: electronic communications, an e-mail, global media and popularization of mobile phones, while for others, it is about trade or the ability, to buy coca cola in rural villages in Africa. For yet others, it is about misappropriation and greed ,while on other hand, the suicide by Indian peasant farmers ,ruined by agro-business and genetically modified seeds , is yet another fact of the misdoings of globalization .Negative effects of globalization, are manifested, most visibly, in wide spread poverty, throughout the developing world, and have become one of the major threats, to both, human progress and human security.
8 It is very disheartening to know, that over the last decades, the disparity in socioeconomic conditions, have widened, and islands of prosperity, have continued to flourish in an ocean of unspeakable poverty. Even if the world co-operates and act as one country, the richer always gets its say, in “What Happens” For e.g.: U.S.A is the richest country in the world, such rich countries influence globalization to their own advantage ,and thereby ,end up harming the economical and cultural issues , of the rest of the world .
GLOBALIZATION AND ITS NEGATIVE EFFECTS ON THE THIRD WORLD COUNTRIES:
Globalization may lead to chances of illegal trade: Opening of trade paths (between countries), does not solely guarantee legitimate products, globalization can none the less be used in the form of a criminal process, for pumping drugs, terrorism and spread of weapons alike
Globalization may lead to financial crisis and unemployment in third world countries: Instead of spreading wealth around, globalization and its current macroeconomic policies have brought Asian countries, a strong negative impact, which has often taken the form of financial crisis and unemployment.
Globalization is a very uneven process: Globalization is a very uneven process ,with an unequal distribution of benefits and loses , this imbalance leads to polarization or separation between ,few rich countries or individuals, that gain benefits and the many other countries that loose out or are marginalized . Globalization, polarization, wealth concentration and marginalization are linked, through the same process, in this process investment, resources; growth and modern technology are focused on a few countries mainly, (America, Europe, Japan, and East Asian countries)
9 MULTINATIONAL CORPORATIONS AND THEIR INFLUENCE ON THIRD WORLD COUNTRIES: Moral challenges for businesses in U.S.A are difficult enough, considering “balancing profit interests, against the need of consumers, employees, government, and special interest groups. This has in turn, led multinational corporations, based in Western Europe, North America and Japan, to operate their manufacturing and other business facilities in underdeveloped countries. These large global companies exert enormous economic, technological, political, environmental and cultural power, around the world (more particularly in third world countries, for e.g.: General Motors is one such multinational .It is interesting to note that General motors were the manufacturing company with the largest asset in 1994, i.e. They had 198.5 billion in total assets, the figure being much larger than the G.D.P, of all but a dozen or so third world countries. However the actual problems with regard to these third world countries begin ,when these corporations, begin to take advantages of the lax moral expectations ,of these lesser developed countries .
According ,to popular view globalization, is the inexorable integration of markets, nation states and technologies to a degree never witnessed before ,and in a way ,that is enabling, individuals, corporations and nation states, to reach the world, farther, faster , deeper and cheaper than ever before. Globalization is a process where by political, social, economic and cultural relations increasingly take on, a global scale, which in turn has profound consequences, for individuals and their experiences in everyday life. Vast corporate empires, compliant governments, a globalized consumer monoculture, universal ideology and a commitment to corporate libertarianism, are the driving force, accelerating the era of globalization. The advent of IT revolution has enabled a quick and easy world wide interaction, and has resulted in the world becoming, a smaller place, concept of B.P.O’s and L.P.O’S signify the importance of a globalized world. Globalization is a multi dimensional concept, which has enabled the world to open up in areas of politics, economics, technology and environment. Globalization has had its impact on the entire world; however its impact has been more prominent on third world countries.
10 The third world countries comprise of the whole of Africa, Latin America, and Asia, apart from (Soviet Union, China, Japan and oceanic islands of Australia and Newzeland. The third world countries were those, which were, neither inclined, towards first world nor second world, In fact third world countries were those, which remained neutral, through out the war.
Aniket Datta 5th Year Student, of: (The Army Institute of Law, Mohali)
Such Third world countries, are developing countries, majority of which are poor, they are densely populated and lack basic Amenities of life. Lack of money in third world countries, means that, people of Latin America, Africa and Middle East Asia, live very differently to, people living in countries, such as England and U.S.A. The advanced western countries are capable of influencing and do influence, tremendous (Economic, Social and political pressures on third world countries).
Like two sides of the same coin, Globalization too has had both positive as well as negative influence on the third world countries. While on the one hand, it has resulted in benefits such as, those of inter- connecting the whole continent in to culture and values, improving labor standard up gradation, ushering an era of more substantial product diversity, and providing of better products at competitive prices, On the other hand it has also resulted in chances of illegal trade, financial crisis and unemployment, environmental degradation, unequal distribution of benefits and losses and the resultant unemployment, and unequal distribution of benefits and losses to the (third world countries). However ,though globalization ,is often used in a positive sense ,to denote a global village, of free trade, hi-tech marvels and all kinds of possibilities ,that transcend class ,historical experience and ideology, extreme opponents ,charge it with impoverishing the world’s poor, enriching the rich and devastating the environment ,still fervent supporters, see globalization ,as a high speed elevator to universal peace and prosperity . Thus in the end it would be rational to state that globalization, though a positive phenomena, does have some negative effects, which too can be minimized by, providing development initiatives and technological guidance to the third world countries .