Globalization: New Form of Colonization

2170 Words Nov 25th, 2009 9 Pages
Globalization: A New Form of Colonization After the Second World War, a decolonization process took place - for previously slaved and colonized nations - supposedly ending almost four centuries of slavery and exploitation. It was followed by the end of the cold war and the beginning of a new era: Globalization. Although there is no exact definition of the word globalization, some experts believe that “the process of globalization not only includes opening up of world trade, development of advanced means of communication, internationalization of financial markets, growing importance of MNC’s, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution” …show more content…
She explains that, following the decolonization era, many developing countries – now independent – found themselves into enormous budget deficits. With no capital to finance their own economies, nor the technology to exploit their natural resources, they turned to private banks, for financing. However, their demands were overturned due to unreliability. With no choice left, they had to seek assistance from the International Monetary Fund, “an organization…working to…secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world” (IMF, 1). As the IMF explains it on its website, “an IMF loan is usually provided under an ‘arrangement’, which stipulates the specific policies and measures a country has agreed to implement to resolve its balance of payments problem”(IMF, Lending). These “arrangements” include policies referred as Structural Adjustments Policies (SAP) – often criticized for increasing poverty – or the steps toward globalization as some people refer to them. Shah also explains in her article “Structural Adjustment—a Major Cause of Poverty”, that, the SAP consists of agreements with the World Bank, and the…