Effects Globalization on Third World Countries
Globalization is a common denominator that brings together countries from all over the world to share a common goal. For example, because of this linkage among nations, there is increased industrial and financial globalization, which is behind increased opportunities for 1st and 3rd world nations. While these countries experience the impact, developing counties seem to be reaping the benefits more than their developed counterparts are. The former are attracting investors from all over the world because of improved business environment. While this is the case, these countries continue to experience a mixture of positive and negative effects.
Importantly, globalization is essential in improving people’s living standards of the people. How does this happen? Economic globalization creates a forum for developing countries to get foreign aid. With exceptions of when such funds are swindled, they could be used to improve a country’s infrastructure, leading to improved living standards. It is however important to use the money to improve the welfare of everyone in the society and not a section of the country. This may undermine the sole objective of international funding, as it ends into individual pockets.
Additionally, third world countries benefit from globalization through access to new markets. With international linkages, there are no trade barriers and developing countries can freely trade with any country around the world. Economic experts believe that this is the leading benefit of globalization in developing countries. Homegrown companies have an extended market base as they can reach clients in other countries without restrictions. Because of this growth, countries are able to expand and develop new products and technology.
Another impact of globalization on third world countries is the widening differences in incomes. Even though an increase in foreign investors and capital cuts down on unemployment, it may lead to a huge gap between the educated and those who are not. It is worth noting that education levels of developing countries will only rise after a long time even with improved economies. During this period, some of the poor citizens in these people will endure more poverty. This is because, not everyone in the country will be part of the process of improving living standards.
Nonetheless, third world countries experience low employment because of globalization. When there is an influx of foreign investors in third world countries, people secure jobs, especially those with specialized qualifications. However, with massive usage of technology in companies, even domestic firms also embrace these trends. For example, automations reduce the need of having unskilled in manufacturing and industrial sectors leading to massive loss of jobs. In extreme cases, the government might find it hard to take care of jobless dependants, especially when there are no infrastructures to augment development.
Globalization may also create tensions between the people who have skills and those who do not in fighting for limited opportunities in companies. For example, developed countries were already reaping the benefits of the internet when poorer countries were struggling to acquire computers and pay for the access of the internet. Since developed countries control the internet and leading multinationals, third world countries pay for rights when establishing e-companies.
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