MEERA MERCHANT

GLOBALISATION AND IT’S EFFECTS ON DEVELOPING COUNTRIES.

Today, a person can buy a dress made in the UK, while living in a completely different continent, it’s
all thanks to globalization. Globalization is not just exchange of goods and services, but exchange of
ideas, ideologies, cultures, promoting international integration. One of the core ideas behind
globalization, from an economical perspective, is to increase the rate of growth and development of
the economies of developed countries.

It is a simple yet a very effective strategy if this phenomenon has its intended effects. The consumers
of developing countries like India, Turkey, Iran, Iraq etc. can enjoy the benefits of globalization such
as being offered an eclectic pool of products to choose from, having an upper-hand in the bargaining
for a fair deal, being able to compare the qualities and prices of products, and staying up-to-date
with the latest technologies, trends and fashion from all over the world. The countries too benefit
immensely from the inflow of foreign capital.

However, the take of businessmen and producers of these countries on globalization and its benefits
give a fresh and a rather dull perspective. While the big businesses and manufacturers rightly take
maximum advantage of globalization by partnering with huge MNC’s and expanding their reach , the
small and medium businessmen and producers find it increasingly difficult to make their place in the
market. The international products with their high quality and affordable prices prove the
marketplace to be one of cut-throat competition. In order to reduce the prices of their products,
manufacturers then try to cut their costs which leads to exploitation of laborers and craftsmen. They
are forced to work longer hours with extremely low wages and have zero job security. Some
traditional enterprises are even forced to stop their activities completely, result of low sales and lack
of funds.

This wasn’t supposed to happen, some shopkeepers think to themselves as they go to bed, defeated
by globalization. Yes, it’s true it wasn’t. But we forget that globalization is not a one-stop-solution or
a develop-faster-and –quicker scheme, it’s a process that brings the world a step closer to
international peace and world-wide access, it does not address the economic problems like class
disparity, unequal access to resources etc. It is not supposed to. The developing countries have been
given a helping hand, it is up to them to see to it that this hand spreads over the entire country –
equally, justly and with full vigor.

The governments of developing countries plays a major role in ensuring this. They can encourage
MNC’s to collaborate with small and medium enterprises as well, this way even these enterprises
can thrive. The governments can make it compulsory for manufacturers hiring unskilled laborers to
sign a contract with every laborer stating the minimum wage they will be paying, the number of sick
leaves they will be getting and the employment period is of minimum 3 years – this will ensure
accountability from the side of the factory owners and will edify the condition of the workers.

Globalization is like the wind as described by Subrahmania Bharti – making the strong stronger, and
making the weak disappear.