Wednesday, February 08, 2006

Globalization has been and ongoing trend eversince the New Imperialism in the late 19th Century as a result of the promised wealth and economic propositions it offered to the nations that took part in the Industrial Revolution. Spearheaded by powerful countries like Britain, France, USA and even Germany, globalization has been penetrated into remote regions such as Africa, South East Asia and Japan. With execptions of the former, Japan was threathened to open up its markets to the Europeans considering its policy of isolation thus far up to the 1900s.

Globalization seems to be the answer and the solution to the mounting problems of the developing world, which refers to the part of the world where globalization is taking place gradually and naturally, globalization is an evolutionary process in most parts of the world. Essentially, the Western part of the world, particularly referring to America, Europe and Japan had been labeled as developed nations, in an instance where globalization had reached its peak. However, the trend of globalization had been diffused to many countries including the Southeast Asian region and South America. Yet, in globalization literature, it has been said that many people tend to benefit from the entire globalization process and more globalization is needed to solve the prevailing problems in most countries. This seemed not to stand to scrutiny. By examining the problems in the developing countries, it will essentially show that globalization seemed to be one of the imminent solutions. However, such solution should not be exaggerated or placed much emphasis. There are other solutions in such a complex and paradoxical world that we are living in.

Superficially, the view seemed attractive. Undoubtedly, it tends to portray that globalization is the sole answer to the problems in the developing world. Simultaneously, in most instances, it was aimed to the benefit the people through a whole range of activities.

In this respect, poverty seemed to be a major concern amongst countries with a high rate of its population concentrated in rural areas and most of them are illiterate. Thus, governments in such countries introduced policies intend to allow more of its population to participate in the new economic environment. For one, there is the World Bank which provides loans to poor countries for development projects. Such loans was intend to provide the governments with a sound infrastructural network with the construction of roads, railway networks, telegraph services, bridges and shipping services. It also lends for what it calls adjustments projects, which are to support governments undertaking policy reforms, which are to support governments undertaking policy reforms such as improved public sector management. This was evident in Indonesia with foreign investments reaching US$600 million, thus creating a pool of jobs and employment for the masses. In Thailand, Global Investments Private Limited had recommended tax free offshore investments, offshore trusts investments, medical and school fee planning. The construction of such services linked Thailand to play a more prominent role in the world economic system. This was further enhanced with the Thai’s Prime Minister, Thaksin, had already backed a proposal plan by the energy ministry to revive the latest budget projects, which will connect deep sea ports in the Andaman sea and the Gulf of Thailand with a 230-km long road and railway pipes, drawaing investments nearing $700 million and provide and alternative route for shipping and oil services. Hence, the result was that it increased trade and commerce, and also allowed the locals to gain from the investments. It also gave other locals a chance to invest and to export their products to the other parts of the world, increasing their income and standard of living.

Nor was that all. Globalization promotes peace and democracy in most developing countries. Countries strive to maintain cordial relationship because they do not want to threaten their vested interests. This was evident with the visit of the president of Philippines to the United States to ensure continuous and consistent support from their American counterparts when it comes to dealing with terrorism regionally, but particularly, globally. In the case of Libya, President Ghadaffi had made radical changes to his plans with regards to the construction of mass weapon destruction in order to be accepted by the world, but particularly from the British and American point of view. This was to ensure smooth trade and commercial activities between Libya and the industrialized nations. In this instance, it also triggered a sense of democratic movement by the Libyan government. As a result, globalization will eventually led to most countries come together and promote not only world peace by hunting down terror cells worldwide, but also to promote the economy of a country, but more importantly, to sustain economic growth and stability.

Yet, within a context of a complex world that we are living in, it would be too myopic to recognize that globalization seemed to provide the platform and the path to solve the problems in the developing countries. As a matter of fact, it should be noted that globalization seemed to be the cause of misery amongst most of the rural population, particularly the peasants. The view neglects such dramatic and radical negative effects globalization had on the society and the economy. Thus, the assertion is an over-exaggeration of the implication of globalization.

For one, there was the exploitation of labor in these developing countries. In Southeast Asia, where standard of livings seemed to reach such low standards, the Westerners and multi-national corporation seemed to take place this in their favor by investing in huge amounts, but at the same time repatriate most of these profits to their own boundary. Only a small amount was devoted to the local workers. This was evident when a group of people began the anti-Nike campaign when it view that the firm had repatriate an estimated of US$ 70 million from its overseas investments in Southeast Asia. In El Salvador, a woman who sows a $200 Liz Claiborne jacket is only paid merely 74 cents, which is less than half of 1%. Labor codes regarding matters such as labor recruitment, medical services, wages and working hours are not issued, thus, making working conditions in the developing countries essentially deplorable and deleterious in state. Thus, the workers were neither in the mood nor in a position to work effectively and efficiently and as a result, strikes are often within factories in developing countries, putting their economy in a stagnant and static position. This is evident in Indonesia and other parts of the growing world where the welfare of the people had not been prioritized.

Nor was that all. Globalization had also caused the destruction of native culture, handicrafts and traditions. In most cases, globalization had set a trend of “Americanization” amongst the new generation. The new generation is exposed to such Western cultures and ideas through the infiltration of Western media, either in the form of magazines, internet or even the newspapers more than ever before. Sadly, their local traditions, cultures and handicrafts had been removed and probably had almost reached liquidation point. Of more importance, gradual Westernization significantly affected the foundations, on which natives handicrafts had been hit upon. Lack of efficient, capital and support hindered the progress of craftsmen to promote and play a prominent role in the new economic environment. In the developing countries, many would prefer Western brands rather than local made goods. Thus, it would be blinkered to place such major emphasis on the positive aspects of globalization.

Yet, this does not draw us to the conclusion that we should or hinder the progress of globalization. Essentially, globalization had its advantages and disadvantages. While it undermines the position of the societies and local cultures, it should not be neglected that globalization had created a substantial amount of income and integrated local economies into the world economic system. To note, globalization is aimed to benefit a whole range of people, either the developed or the less developed nations. Globalization, as mentioned earlier, is a slow and gradual process. In fact it took America 100 years to topple Britain as the world leader. Thus, improvements amongst the developing countries should be swift, fast and dramatic. In the final analysis, in terms of time frame and speed, globalization will essentially benefit the whole world in the long term.