Consequences Of Globalization In Developing Countries

To make an educated decision about whether or not globalization's consequences have been primarily negative for developing countries, we firstly need to define what globalization is.

Globalization can be described as the interaction and integration among people, companies, and governments of different nations through trade, investment, capital flow, labour migration and technology. It encourages the flow of goods, services and labour (globalization101.org, 2016). Globalization has effects on the environment, culture, political systems, economic development and prosperity, and human physical well-being in societies around the world. James Rosenau, a foremost political scientist, defined globalization as “a label that is presently in vogue

In particular, for developing countries. On one hand it can be said that it allows poor countries and their citizens to develop economically and raise their standards of living. While on the other hand, it can be said that globalization is the creation of an unrestricted international free market. This has led to increased opportunities for multinational corporations in the Western world to benefit for themselves at the expense of local enterprises, local cultures, and exploiting ordinary people. Globalization affects economic and trade processes in developing countries. Wallerstein’s World System Theory deals with the importance of the world as a unit and split the countries into three regions: core countries, semi-periphery countries and periphery countries. This seems to be relative to developed and developing countries. These countries have strong governments and enough taxes to support themselves and are relatively independent of outside control. Examples of this type of country include the United States and the United Kingdom. Periphery countries, or developing in this case, tend to have weak governments. One type of economic activity for example is the extraction of raw materials.(Giddens,

The phrase “the poor get poorer, and the rich get richer” is one that is very often associated with globalization. Nearly half of the world’s population - more than 3 billion people - live on less than $2.50 a day. More than 1.3 billion live in extreme poverty - less than $1.25 a day (dosomething.org, 2015). “The U.N. development programme reports that the richest 20% of the world's population 86% of the world's resources while other 80% consumes just 14%” (Collins, 2015). In the beginning several African economies did benefit from globalization as there was a transient economic growth, however, over the years, they have become heavily dependent on the wealth of well developed nations (Lawal 2006). Dependency theory evolved in Latin America during the 1950’s by a number of different theorists and essentially deals with dominant and dependant countries. The dependant states consist of countries which rely on the export of a single commodity for foreign exchange earnings (Vincent Ferraro, 2008). It essentially attempts to examine patterns of interactions between countries to understand why there is inequality among them. As claimed by Princová (2010), globalization leads to wealth redistribution – ‘global richness and local