The Effect of Globalisation on the Development of Underdeveloped1 Economies

7888 WordsFeb 19, 201132 Pages
THE EFFECT OF GLOBALISATION ON THE DEVELOPMENT OF UNDERDEVELOPED1 ECONOMIES By MUSA JEGA IBRAHIM The existing wide disparities between the developed and the underdeveloped economies makes globalisation a tool for stultifying the industrialisation process, and by extension, retarding the growth and development of underdeveloped economies. Trade liberalisation, the cardinal instrument of globalisation ensures that industrialised countries have access to world markets, which enhances further industrialisation of industrialised countries while incapacitating the industrialisation process of the underdeveloped economies. The paper is an attempt to examine issues surrounding the paradox of globalisation and provide a framework for…show more content…
Proper application of ideas is very crucial in the development process, which Romer (1992) incorporated as a factor of production and contrasted alternative development strategies based on using existing ideas and producing ideas. An essential precondition for economic development is economic growth. Kuznets (1971)2 defined economic growth as “a long term rise in capacity to supply increasingly diverse economic goods to its population; this growing capacity is based on advancing technology and the institutional and ideological adjustments that it demands” (Todaro, 1994). Increases in the outputs of major sectors of an economy, such as manufacturing and natural resource, either as a result of increases in the use of inputs or improvement in technology,

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