Globalisation

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GLOBALISATION:

Introduction
There is no agreed definition of this term. The sociologist Ronald Robertson (1992:8)
understands globalization to be "the compression of the world as and the intensification of
consciousness of the world as whole/ Anthony Giddens (1990:64). Another sociologist speaks of
the world-wide social relations which link distinct localities in such a way that local happenings
are shaped by events occurring many miles away.'

Global space is getting smaller (compressed) in for instance, of the time taken for people, objects
and images to traverse physical distances as a result, social interactions are increasing across
spaces that once were confined economies and cultures.

The concept can further be understood better by spelling out its characteristics. What is
happening in the world today are the people getting closer to each other like it happens in the
village-global village! Other characteristic of globalization include faster movement of capital,
faster growth in international trade than domestic economies; more trade among nations than
within national borders, technological interdependency, declining communication costs as the
result of information technology revolution, internationalization of production and convergence
of state economic policies in favor of neo-liberal market oriented development.

If well planned and implemented, putting interests of the developing countries into account,
globalization would create an integrated world economy. This would mean international
planning of the economy, with all nations putting their heads together, to create an excellent plan
for the globe.

Globalisation would create an economic system, which is based on social justice and collective
property of the means of production like factories, technology and capital. This means that
people could live under better conditions with minimal or no poverty, as it is the case today.
Globalisation would mean elimination of unequal distribution of wealth and creating increased
living standards for all.

However, the process characterizing the nature of international politics today is that of
exploitation, imperialism and underdevelopment. The outcome is essentially continuing
exploitation of the poor by the rich because the international capitalist system's central feature
has been its capacity to maintain patterns of economic dominance.

Plenty for a few on one hand, deprivations for the majority on the other today characterize the
world. “Today there are 7 billion people living on the planet and it would be possible to produce
food for 10 billion. However, hunger, starvation and misery are on the increase (900 million
suffer from malnutrition and 2.4 billion live under the poverty line.
Effects of Globalization on Developing countries

Apart from having access to quality goods of consumption, it makes a small elite class in the
south live a comfortable life like that of the developed countries and some trickle down effects to
the poor people of modern technology like using a mobile phone, globalization is a disaster to
developing countries, as development strategy. In addition it has other social and political
consequences.

Globalizations is a new phase of neo-colonialism, this time by powerful Multi National


Corporations [MNCs] with income more than national income of many developing countries put
together, supported by their mother countries and favored by multilateral institutions like World
Bank (WB), International Monetary Fund (IMF) and World Trade Organization (WTO). Free
trade under globalization enables the profit- hungry Multi-National Corporations to exploit
resources from poor countries without interference.

Historically, there is no country that has ever industrialized under free trade system advocated
for by Globalization. Be it United States, Britain, Germany, Japan or, recently Asian Tigers. In
all instances, the state played a very big role in directing industrialization process. Britain
developed her industrial base under tariffs. Even when still practicing protectionism, she
advocated for free trade outside her borders. Other non-industrialized European countries and
America rejected it. They opted to protect their infant industries first before they could practice
free trade.

Therefore under globalization, with free trade policies, developing countries will be condemned
to producing raw materials for export and import manufactured goods. High quality goods from
developing countries will prevent any embryonic form of industrial development in developing
countries. The system intensifies dependency leading to perpetual hemorrhage of resources from
poor countries to the developed world. No wonder the gap between the rich and poor countries is
widening.

The internationalization of production has and will not help Developing Countries. Without state
regulation, multinational corporations are usually involved in low value industrialization process.
Many developing countries have been reduced to assembling of components of a product, when
actual manufacturing is done in mother countries. (Oxfam. 2002. pg 180).

Multinational Corporations are said to create employment in developing countries. Since they are
usually involved in assembling activities, the number of people employed is small. Moreover
they usually pay low wages, violate their employee's rights and subject them to poor working
conditions. Some are exposed to hazards, which affect their health. (Rob Sewel, 2001)
The modernization of Agriculture also under global warming will lead Africa nowhere. The
Ministry of Agriculture is promoting organic food and teaching farmers how easy it is to grow .
Our indigenous crops, which are more natural, are being replaced by laboratory-manufactured
foods with very low nutrients.

Globalization is encouraging dumping of goods from developed countries. Dumping is the


process whereby goods below the costs of production are exported to another country. These
cheap goods destroy local industries and activities. Developed countries, due to the subsidies
they give to their farmers, usually dump their agricultural goods and cause poverty in poor
countries eventually destroying local food production.

Some of the goods exported to developing countries are injurious to the health of the people.
With advertisements, they are promoted with much vigor and the people adopt consuming habits
that are responsible for poor health. The example of MacDonald fast foods, cigarette
consumption can illustrate the point.

Globalization is destroying livelihoods in poor countries. Multinational corporations have


entered the businesses that were performed by the local people. For instance in Uganda, the
vogue of supermarkets coming up. Shoprite, a multinational corporation is selling retail items
sold in small shops. As a result small shopkeepers are experiencing low sales. The multinational
corporation takes the trickledown effect that would have accrued to the traders. This too reduces
purchasing power of urbanities that buy from poor peasant farmers who produce food. It triggers
off a chain cause and effects of poverty.

Globalization with its free market and privatization policies has taken the assets of developing
countries accumulated by the state over a time. Privatization has made governments get rid of
public assets and have been taken over by multinational corporations. Yet, the money spent on
them in most cases was a foreign loan.

The multinational corporations have the money to bribe elites in developing countries in order to
get trade concessions. Sometimes they promise the political elites shares within the companies
they buy from governments. They have turned political leaders in developing countries into their
puppets. Globalization actually promotes corruption in developing countries. For example today
tullow oil company has many oil contracts across Africa but they are got through dubious deals
with the political elite ignoring the laws and the general population.

Under globalization, most Multinational Corporations are involved in activities that destroy the
environment, deplete stocks and poison source of livelihood. In Uganda, due to requirements of
foreign exchange, multinational are involved in export fish and growing of flowers. Soon or later
the fish stocks will be depleted. The land that is used to grow the flowers could have been put to
food production. Moreover they use pesticides that destroy the environment.

Globalization undermines efforts to promote democracy in developing countries. In developed


countries, a middle class regulates the activities of the political elite. In poor countries due to
reliance of foreign investors, there is an auxiliary of multinational corporations with no backbone
to exercise authority hence democratic development. Moreover the multinational corporations
would prefer an autocratic with whom they cut deals behind the scenes.

Globalization of the market has turned the world into a global battlefield of the survival of the
fittest. The powerful ones prey on the weak. The unfair trade relations between the North
(developed countries) and South (developing countries) and double standards of the North are
the order of the day. The South has been exporting raw materials at very cheap prices back to the
South. Worse still the rich North sets tariffs against the poor South hence rendering the whole
trade relations unbalanced.
Japan and South Korea are continually faced with the problem of how to respond to globalization
of the market and protect their national interests. However, if individual states separately pursue
their own interests, the protection of those very individual states become more problematic. This
is one of the severe realities of the globalization of the market. (Pietersev N 2000. Pg 109)

Globalization is re-colonization. If independence and democracy mean people's ability to


influence policies that affect their lives but under 'globalism' they cannot change neo-liberal
market oriented development, then there is no development countries especially food production
if it is not reserved soon. Without protection from goods and price fluctuations, it will follow the
path of destroyed industrial development within not a short period. With cultural alienation,
people from developing countries will have no measure to judge what is good for their society or
not. The society will produce people incapable of resisting and struggling against injustice. Yet
our leaders cannot stand firm about it, lest they will be overthrown.

The West has been advocating for 'good governance' as opposed to 'bad governance' that
characterized the Third World. However, in many cases the US has branded democratic leaders
as dictators, overthrown them and imposed on the population their cohorts, dictators who only
propel their interests.

However globalization is making people aware of the injustices taking place all over the world.
We have witnessed demonstration against globalization and capitalism. Since the world is like a
village, there will be a global solution. People are now aware of rights.
There is no solution that is insurmountable, and alternative choices always exist. Capitalist
globalization such as being offered at this time is not in itself a way of solving the crisis. Neither
does 'rejection' of globalization constitute an adequate response.

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