Pacific Globalization Benefits

Globalization has contributed in important ways to the worldwide growth of economy, politics, technology, social and culture of various countries. Globalization is a relative new term used to describe a very old process. Therefore, globalization is the simply the integration and development of the globe. This short literature consist of three parts; the benefits of globalization, the effects of globalization on government and the people of the pacific and finally the ways in which the adverse effects can be mitigated or solved.

I. Benefits of globalization in the Pacific

Free Trade: Free trade brings real economic challenges for small pacific island countries. As defined in the Encyclopedia Britannica (2009), ‘free trade’ is the lowering or

The establishment of foreign companies can increase a greater opportunity for local people to be employed within their own countries. This also can refer to foreign labor coming to the pacific countries for job. Therefore, in every pacific country, there are always foreigners at least in a particular job of a different kind.

II. Adverse effects of globalization process on the Government and people of the Pacific

Free Trade: Tariff and Import duties provide large amount of government revenue. Therefore the removal or lowering of basic tariff, import duties and other related taxes has a significant impact on government revenue. However, this forces the government to raise revenue in ways that do not disrupt trade, but to the introduction of new tax regime that is unfavorable to consumers. A good example of this is the proposed introduction of Value Added Tax (VAT) that increases the prices of goods and services as define in the Encyclopedia Britannica, (2009). VAT indiscriminately increases the price of goods, causing the people to be more dependent on cash incomes. As a result, there is an increase in the drift of people to the cities, and associated problems occur such as unemployment and squatting. These issues are more evidential in the Pacific island

As stated by Firth (2000), the increase in global inequality makes people in developing countries desperate for jobs in developed countries. Therefore, people tend to migrate to other countries for better living standard, jobs, heath care and security rather than settling in their home countries living in poverty. Free trade policies make labor mobility much more possible. For instance, the people of New Zealand can migrate to Australia without a passport but for Papua New Guineans, they are not allowed to go without a passport and visa, for temporary migration. As more skilled labor migrates to other countries, this leaves the country in a state of chaos and poverty in terms of economic development. The country remains in poverty for there is no skilled labor to develop