Impact Of Globalization On Developing Countries

The increasing interdependence of world economies affects the standards of living greatly, but it can affect it positively. The standard of living is a measure of access people have to goods and services across the world. Quality of life is the conditions in peoples lives which is perspective. This paper will explain the importance of globalization in the developing world and how it can lead to open markets, taking millions out of extreme poverty and overall improving the standard of living across the world.

That this was also the decade in which globalization came into full swing is more than a minor inconvenience for its advocates” (Rodrick). If globalization is supposed to present an advantage to developing countries, why have there been so many setbacks? Indeed, both sides will have its winners and losers regardless of which side of the development coin they live on, but for the most part globalization has lifted millions out of poverty, improved the standard of living, and increased life expectancy rates all while keeping developed nations relatively competitive to their developing counterparts. Globalization’s value is that it seeks to create an economic equilibrium in the world, where parties are free from barriers and can benefit from one another through a more efficient allocation of resources. This allows all participating nations to contribute to an integrated economy and where all nations willing to embrace globalization have the potential to benefit. Regardless, the path to successful integration to the global economy has not always been easy. There is contention towards globalization as some argue that it is detrimental to developed nations, while many developing countries that were forced to hastily open up their markets and integrate failed. However, if implemented properly, globalization has proven that it can benefit all parties involved and that the potential gains outweigh the losses.

In theory, globalization should help contribute to the equality of the global economy. Yet this is not the case in reality. Globalization contributes to unsustainable prosperity for a very small percentage of the world’s population. For those in developing countries, it is especially unsustainable. The resources in these areas are consumed at an unstable rate and the environment given very little consideration. The workers are treated as if they are expendable. The smaller economies of these countries are vastly taken advantage of. For these reasons, globalization contributes to sustainable prosperity to a small extent.

Developing countries are adversely affected by globalization, especially in economy area. Globalization is a process which the world interconnection keeps increasing so it is possible to trade or exchange cultures conveniently. In the past, it was anticipated to develop a whole of countries’ economy or technology and solve some environmental issues such as air pollution or global warming. Unfortunately, until these days, the result of globalization does not reach 50% of economists’ expectation. The major reason of the evaluation is in spite of the fact that it provides advantages, globalization increase the gap between rich and poor. One of the biggest victims is developing countries. They suffer a great loss from the drawbacks of globalization. These are excessive outflows of brain and money, excessive competition in the world market, and Increase of economic polarization.

The second topic in the inequality debate is about inequality between nations. This argument discusses whether globalization is responsible for widening the average income gap between rich and poor nations. When inspecting the average incomes of rich and poor nations, the widening income gap does not occur everywhere. Overall, the debate of inequality between nations results show that developing nations working towards globalization and can possibly grow faster than developed nations. Nations that fail to make their way into the global market may become worse off.

Throughout history, globalisation has played a significant role in numerous countries and their development. While, there are countries who have faced negative impacts of Globalisation. These negative aspects are unrestrained in the 3rd World countries, in a forum of sweatshops. Sweatshop is a factory or workshop, particularly in the shoes and clothing industry, where manual workers are employed at very low wages for long hours and under poor conditions. Since the vast implication of sweatshops to the workers as well as their living environment. There are three significant points which highlights the role that Globalisation played to increase sweatshop work in 3rd world countries, these points are firstly, Sweatshop workers are paid very low

The development gap refers to the financial and social disparity between the poorest and wealthiest in society. Where economic indicators are low, social indicators are often also low, whereas the wealthiest countries also enjoy better healthcare and education. This gap has been widening for decades and is at its widest today. The poor are not necessarily getting poorer; in fact nearly everybody has seen an improvement in quality of life over the last 20 years. The reason the gap is widening is because the richest are getting richer and having their quality of life improve at a far quicker rate.

There is good evidence that globalization has resulted in a considerable increase in world trade over the past 20-30 years. Costa (2008) claims that the globalization makes services, goods, people and ideas move throughout the world more easily. He also maintains that cross-border world trade will play a more and more significant role in global GDP. By 2017, it will approximately occupy 15 percent. Nevertheless, Lin Y. (2006) argues that the globalization also has serious drawbacks. He considers that globalization does harm to both developed and developing countries. Through globalization, few people in developing countries gets benefit. Most of them are still as poor as before because the change of there is so tiny. He also claims that although

Here, researchers looked at data in global income inequality over the past 200 years. By looking at the evidence, Oatley comes to the conclusion that globalization has indeed resulted in the increasing inequality gap with increasing wealth for the rich, which in turn has resulted in the increasing poverty for the poor. According to Oatley, globalization has also transformed social inequality from simply being a local problem (state based) to being an international one. This is to say that wealth is globally being accumulated by the wealthy from the poor. Here, the net effect of globalization appears to be bad. This is not only because of the fact that inequality is on the increase, but also because it has significant impacts on different nations in general. This is to say that globalization leaves various third world countries at the mercy of other wealthy nations. For instance, although the global south (developing and third world countries) are dependent on the developed nations, they are also the producers of raw material and even labor. However, raw materials are sold cheaply to the developed nations, where they are processed and refined and then re-sold at high profit margins. While the developing nations and other third world countries will indeed see some benefits here, it is

Despite the march towards globalization, many people in South America and Sub-Saharan Africa are still mired in poverty. According to Thomas L. Friedman, author of The World is Flat, suggests that the world went into a period of globalization in the 1970’s. In this era of globalization, countries such as China, Russia, Mexico, Brazil, and India initiated what Friedman calls “reform wholesale.” This reform wholesale refers to the focus of the emerging countries on “adopting more market-friendly macroeconomic reform.” Along with the five countries above, many countries in Sub-Saharan Africa and South America also attempted reform wholesale. Rather than becoming major world powers, most countries in these continents failed. Countries need to

Globalization is the process in which businesses develop an international market by agreeing to a partnership to trade goods across the globe under circumstances that are beneficial to their profit. It also involves the competition of producers within a “free trade” market, internationally and locally. With their purchase, the consumers have the choice to support a certain market, so businesses need to find producers that appeal to their consumers and themselves. The idea behind this “free trade market” is that it helps develope impoverished nations develop. They find nations with low GDP or HDI, which is usually based on life expectancy, education measured as an adult, and income, and try to transform it into a modernized society through business and trade. It is generally accepted that the terms of employment are reasonable considering it is agreed upon by both parties, however, the businesses or organizations have little or no interest in the producers.

In one article, it is stated that nobody in the "developed world" even comes close to the "poverty level," with a poverty line of $63 a day for a "family of 4 (The Economist, 2013)." Some contributing factors to the extreme levels of poverty can be attributed to not only a lack of education, but health care, clothes, food and shelter (The Economist, 2013). Developed countries tend to take these simple necessities for granted, as well as tending to forget or ignore the needs of developing countries (The Economist, 2013). While the measures the world has gone to in order to reduce poverty is impressive,

Reading Review: Literature on the impacts of globalization has been increasingly growing over the past two decades as analysts determine if globalization negatively or positively affects domestic economies and social welfare. Rodrik (1997) cautions that “globalization does exert downward pressure on the wages of underskilled [sic] workers in industrialized countries, exacerbate economic insecurity, call into question accepted social arrangement, and weaken social safety nets.” He claims increases in global trade proportionately increases demand for social insurances, while simultaneously constraining the financial ability of domestic governments to respond to the need. However, Rodrik concludes globalization is not a net-negative and it ultimately can help grow poor economies. It enhances opportunities for workers who are skilled and able to move to find better labor opportunities. It is important to note that Rodrik’s analysis is purely theoretical; it lacks any significant empirical evidence beyond general summary statistics and direct comparisons of trade to spending and labor productivity to labor costs.

One of the most common claims made against globalization is that it increases world poverty. Often this claim is supported with a statistic showing the high rates of poverty in a given

Globalization is a trend that is taking more and more effective in the construction industry worldwide included in growing economies. This particular trend is leading the industry in major cases, but because the construction industry also covers a leading number of issues this attractive trend negatively impact developing economies in several ways. First issue raised is the one related to the capacity of local institutions to follow the regulation practically imposed by globalization. In fact the projects that are require the socio-economic development seems to be beyond the ability of the industry in developed countries to compete successfully. In most cases the project dimension, new technology involved as well as management skills are yet to be mastered in some regions as a results countries willing to perform on a global level are forced to import some action related to the construction project itself. Raftery et al (1998) identifies three trends in globalization when it comes to construction. The first identified trend was related to the involvement of the private sector of organizations in the industry, the second trend was a vertical procedure integration, which is increasing in large scale infrastructure projects, a growing number of international or foreign participation in project teams. These trends were attributed to “the globalisation and deregulation of markets necessitated by fiscal, technological and managerial constraints” from the same