The Impact Of Globalization In The Developing Countries

Regardless the financial performance of Walt Disney, try to imagine what would be the revenues and operating income of Disney if it has never globalise. Globalisation helps Disney to gain its revenues from all over the world instead of only from its host countries, United States. In this regard, it is important to remember that the ancient silk road was the most prosperous platform from the 7th to the 9th centuries under its bipolar hegemony, with the Tang Dynasty to the east and the Sassanian Persian empire to the west. Surrounding kingdoms encompassing the six different cultures of Central Asia, East Asia, Southeast Asia, South Asia, the Middle East, and Europe flourished. From a broad perspective, the world in the 7th to 9th centuries may resemble the world of today.

The amount of imports should be reduced in order to prosper national production, and therefore create more working opportunities. All of the mentioned concepts are to attract national business and production in order to create jobs; once foreign products have higher costs, national produced merchandise compete better in the market and therefore the industry grows to create and protect jobs. Secondly, subsidies which sponsor businesses will sponsor some of the businesses in order for them to sell their produce for lower prices than the foreign products so that their produce also competes better in the market. Protectionism also needs higher taxes in order to function properly, and is therefore disliked by many people. More positively, some feminist philosophers contend that globalization has enabled women to claim their human rights by creating “new spaces, institutions and rhetoric where the notion of universal human rights is a powerful justificatory principle” .

globalisation problems

Perhaps unsurprisingly, Pyongyang, North Korea places first on the list when it comes to civil and political rights violations. Under the current North Korean regime, some significant civil rights violations include arbitrary arrests and detentions, the holding of political prisoners and detainees, and a lack of judicial independence. While a third of the top FDI cities are at high or extreme social risk, this figure is even higher when looking at all 575 cities included in the Social Index. It’s easy to focus on the negative triggers for the impending name change, but there is some substance behind the change as well.

A report by the World Bank said that poverty in India and Indonesia was cut in half because of globalization. The report also said that people in poorer nations are living longer and better because they were making more money. Others, like Thomas Friedman, believe that globalization can bring people together and make everyone richer without getting rid of local cultures. People who support globalization also believe that it makes war less likely because it is bad for business. Francis Fukuyama also argued that globalization would eventually lead to a system of world governance which would cause wars to end.

The government in a developing country should examine this issue in depth and try to overcome its institutional ‘gaps and constraints’ to growth and globalisation. Most technology of the past, now being transferred to developing countries, under the process of globalisation problems and FDI, are tantamount to more destruction of the environment. Many developing countries are under enormous international eco-political pressure to accept globalisation in haste, which is likely to put excessive strain and overexploitation of their resources disregarding the environmental ecological balance. Every country has a specific capacity to pile up people and cater to their basic needs. Densely populated areas are lacking behind the race to obtain and maintain social order. Food, Housing provisions, and other benefits are far from their reach as the government is unable to provide such a huge number of people.

Local social, political, and economic considerations were largely ignored. Privatization without land reform or strong competitive policies resulted in crony capitalism, large businesses run by organized crime, and neo-feudalism without a middle class. The consequence will be escalated levels of debt, weakened policy credibility and a lot more difficult task of adjustment in the future. Stiglitz argues that IMF policies contributed to bringing about the 1997 Asian financial crisis, as well as the Argentine economic crisis. Also noted was the failure of Russia’s conversion to a market economy and low levels of development in Sub-Saharan Africa. Specific policies criticised by Stiglitz include fiscal austerity, high interest rates, trade liberalization, and the liberalization of capital markets and insistence on the privatization of state assets.

Even narrowing the focus further, New York County, with only 2.6% of the US population, accounted for the 13.1% of US infections. In Europe, Lombardy, with only 16.6% of the Italian population, accounted for 37.6% of total infections in Italy. This striking geographical concentration of infections in the most prosperous metropolises in the world was a prominent feature of the COVID-19 pandemic during the first half of 2020. We examine the initial phase of the COVID-19 pandemic until mid-May from a spatial economics perspective.

The problem with lowering taxes is that either tax needs to be increased in another area, such as income tax, or state services, such as schools and hospitals will be decreased in quality. Also as wages lower the economic welfare drops because, because the budget of the average person sinks and stops them from accessing goods and services which are too expensive for them. Thus, the free market is a constant vicissitude, meaning it always changes, therefore when the economy depresses the price of production decreases so much that western corporations cannot compensate and go in bankruptcy.

  • But it is only one factor among many accounting for the economic advances of the past 25 years.
  • The IMF has already recognized that some regulation is needed depending on the stage of capital market development and has moved a considerable distance in supporting capital controls of certain types and under certain conditions.
  • Before globalization it would not have been possible to know about other countries and their cultures.
  • In their view, Nussbaum and Okin do not pay sufficient attention to the ways that justice and injustice are mediated by local conditions in their attempts to identify universal moral ideals.
  • “We need to work with our supply chains and customers to solve these issues.

Fraser further suggests that globalization has created new transnational public spheres in which public opinion can be created and marshaled to hold political leaders democratically accountable. Traditional public sphere theory, such as that developed by Habermas, defines the public sphere as an area of social life in which individuals come together to reach a common public opinion about social issues. Insofar as the process of deliberation is fair and inclusive, the resulting public opinion is normatively legitimate; because it expresses the considered will of civil society, it can be mobilized as a political force to hold public power democratically accountable. The IMF also foisted premature capital market liberalization without institutional regulation of the financial sector. This destabilized entire developing economies by causing massive inflows of ‘hot’ short-term investment capital; then when inflation rose, the IMF’s loan conditions imposed fiscal austerity and dramatically rising interest rates.

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