GLOBALISTAION AND THE DEVELOPING COUNTRIES

GLOBALISTAION AND THE DEVELOPING COUNTRIES

Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. But the question comes is it equally good for all as it is portrayed? Globalization has enslaved the developing countries social, political, economical, and financial power to the developed countries through trade, media and financial institutions. People around the globe are more connected to each other than ever before. Goods and services produced in one part of the world are increasingly available everywhere. In other words, globalization promotes free trade. Free trade results in increased financial flows and consumers are benefited from a choice of wide range of products. Multinational companies are investing in the developing countries, which are creating more employment opportunities. But is this the real scenario? The exposure of local businesses of the developing countries to international competition has resulted in many local companies being driven out of the market. In Jamaica, 22 garment manufacturers went out of business in 1988 due to the 'free zone', which once employed 27,000 people. The concept of technology transfer is in reality a myth. Multinationals don't invest on capital or technological intensive industries in developing countries. They come to these countries to reap the benefit of their cheap labor. The shirt which costs $15 to make in the USA costs $1 in Bangladesh. And all the revenues of the multinationals are sent back to their home country. So how do they treat these cheap labors? Since there are no labor laws in developing countries, they exploit these impoverished labors. The working condition raises questions of labor rights and underpayment.

Globalization is widening the gap between rich and poor countries because these poor countries are in constant debt. The high rate of interest on the loan and the structural reforms that the lending organizations (IMF and the World Bank) ask the borrowing nations to embark upon worsens the economic situation of the developing countries and aggravates poverty. The number of poor countries in Africa increased from 27 to 34 in just five years. Globalization is promoting the concept of one-world. Mass media ties the world together and reduces cultural barriers. Increased flow of communication allows vital information to be shared between individuals and corporations around the world. But there is a greater chance of reactions for globalization being violent in an attempt to preserve cultural heritage. Bangladeshi people are moving from their traditional food rice and fish to western foods. Our traditional music is now remixed with western music. This cultural diversity is endangering the local traditions of the developing countries. Brain-drain is becoming more evident, resulting in high-profile, talented individuals of these countries going to developed countries for better opportunities. Most people claim that globalization has brought rapid prosperity to developing countries but it serves the needs of the developed nations at the expense of the developing countries. A globalization that does not include the entire world is not globalization but "Westernization". It is a modern method of slaveholding and colonization of developing countries.