ARTICLE CRITIQUE COULD DEVELOPING COUNTRIES TAKE THE BENEFIT OF GLOBALIZATION?

Rusdy Hartungi International Journal of Social Economics Vol.33 No.11, 2006

This author discuss about the impact and benefit of globalisation on developing nations. The impact of globalisation for developing countries is 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. Globalisation also thrown up new challenges to developing countries like volatility in financial market, abuse of labour and environmental degradations. Based on author findings, the impact and benefit of globalisation are trade and industry, labour and employment, intellectual property right and environment. Firstly, the impact of globalisation on developing nations is trade and industry. Many developing countries have weak economic, legal, and political institutions, making them vulnerable to high levels of corruption, insecurity, and conflict. Trade liberalisation can induce technological innovation, undermine elite privilege, and thus contribute to general economic growth. The second impact is labour and employment. The government of developing countries start to compete each other to deregulate their policy to attract FDI's, MNC's, a competition described by some as a "race to bottom" as government dismantle regulatory structures ensuring that wages and taxes and remain low. The developing countries labours, who were probably already on low wages by any standards, lack of union representative and legal protections and forced to take the jobs that exploit them. Child labour and the gross labour abuses by global companies operating in developing countries are also other issues. Globalisation make the barrier among nations is increasingly becoming irrelevant, highly skilled workers, professionals and capital owners in developing countries are now free to move with their resources where they are most demanded.

ARTICLE CRITIQUE COULD DEVELOPING COUNTRIES TAKE THE BENEFIT OF GLOBALIZATION? Rusdy Hartungi International Journal of Social Economics Vol.33 No.11, 2006

Furthermore, intellectual property right also have an impact of globalisation on developing nations. When developing countries join the global organisation, they are bound with intellectual property right agreement. The agreement related to intellectual properties such as trade-related intellectual property rights (TRIPS). The costs to developing of implementing the TRIPS Agreement are unreasonably high. Finally, the impact of globalisation on developing nations is environment. The environmentalists or greens concern that globalisation is encouraging more economic growth, mass consumption and large-scale economic activities and thus excessive exploitation of renewable and non-renewable resources. The issues discussed on this article about the advantages of globalization to the developing countries, especially in Indonesia. The primary question of this project is could developing countries take the benefit of globalisation, it same as the title of this article. It have four independent variables that used in this article are trade and industry, labour and employment, intellectual property right, and environment. Whereas, the dependent variable is the impacts of globalization on developing nations. The authors use reviewed, analysed and the critiqued to find out the solution of his study. If there are any differences in categories, it were discussed and resolved. Thus, this method exposes the researcher with a few factors that could affect the internal validity of the study. Without empirical data to back up the result of the study, it is hard to relate how significant each analysis with the study. How does each measurement correlate with the impact of globalisation on developing nations? It is also not mention here, how they study the report intensively. What method that they are using to evaluate the answer from the analysis. Without these, it is impossible to evaluate the potential meaningfulness of this study.

ARTICLE CRITIQUE COULD DEVELOPING COUNTRIES TAKE THE BENEFIT OF GLOBALIZATION? Rusdy Hartungi International Journal of Social Economics Vol.33 No.11, 2006 While the study has merit, the methods need to be re-evaluated. The power of the study needs to be increase by obtaining a larger sample size, not only for Indonesia. By adding more number of countries in the study, the result conclude will be more accurate. The author concludes her study pointing out the impacts and benefits of globalization on developing countries .Throughout the time he observed in the Indonesia, the government of developing countries should still seek limited protectionism. The government of developing countries themselves need to find ways to grow more rapidly, adapt new

technologies,improve their human capital base, and create stronger institutions.

Reference : Rusdy Hartungi. (2006) Could Developing countries Take the Benefit of Globalisation?. International Journal of Social Economics, Vol.33 No.11 pp 728 - 743.