Globalization & the World's Poor Essay Example | Topics and Well Written Essays - 1500 words

Globalization & the World's Poor - Essay Example Developments in technology and policies over the past few decades have acted to be the catalyst in cross border trade and investment. The current wave of globalization opened up the domestic economies internationally. In the periods after the Second World War the governments of most countries adopted the free economic systems to be the driver of the economy. The free economic regime increased the potential of the states and created new opportunities for trade and investment. With the aim to promote trade and development the government negotiated in reducing the barriers of trade while the new corporations exploited the new opportunities in foreign market by moving into agreements. The economic life was transformed with advances in the field of technology. The definition of globalization has remained controversial. The proponents of globalization argue that the process will enable the poor countries to improve the standards of living while the critics argue that globalization only ben efitted the large corporations and eliminated local enterprises out of the market scenario. The resistance of globalization has been from all levels and the government are now engaging themselves in regulating the flow of capital and goods that constitute the wave of globalization. ... It was thought globalization will bring about an overall welfare for the society. So the society as a whole was supposed to reap the benefits. But after the years of implementation it was founds that the benefits are getting directed towards the developed countries and the less developed countries are remaining under the shadows of darkness. Some argues that multinational corporations enjoy the power over the economies of the world. But it can be argued that it is not the companies that take the advantages. It is the well developed nations that exploit the poorer counterparts through international networking communities. On a cyclical note it can be said that globalization deters protectionism by opening up the borders which facilitate easy flow of ideas and products. Globalization increases the opportunity for self interests and in this fashion pursues the interests of the first world countries with the expense of the third world countries. Therefore globalization acts to cheat the world’s poor. The financial press and the influential officials of the international authorities assert that the global markets expand the dimensions of the poor while the critics hold the opposite position with equal intensity. In the period between 1980 to 2000 the percentage in trade in goods as well as services in China increased from 23% to 46% of GDP. In the case of India, The percentage ranged from 19 to 30% over the same period. The development of the nations created some opportunities for the nations to utilize. But some nations lacked the capability to utilize the situation as there did not have the required political and domestic situation. The idea of free trade rests on the notion that nations should involve themselves in exporting those products in