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GLOBALIZATION AND ITS EFFECTS ON THIRD WORLD COUNTRIES

Introduction

Globalization is the hottest and the most discussed topics of the last decennium.

Globalization is a relatively new term used to describe a very old process, it begin
with our human ancestors, moving out of Africa to spread all over the globe, in the
millennia that has followed, distance has been largely overcome, trade and human
barriers have been lowered or removed, and this has in a way facilitated, exchange
of goods and ideas.

Propelled by the desire to improve one’s life and helped along by technology, both
inter-connectedness and interdependence have grown.

Although throughout history adventurers, generals, merchants and financers, have

constructed an even more global economy, yet today’s unprecedented changes in
communications, transport and computer technology, have given a new impetus to
the process of globalization.

According to one popular view, globalization is the inexorable integration of

markets, nation states and technologies, to a degree never witnessed before in a
way, which is enabling individuals, corporations and nation states to reach the
world, further, faster, deeper and cheaper than ever before.

To quote “Bilton et al”: Globalization is the process, whereby political, social,

economic and cultural relations, increasingly assume a global scale, which has
profound consequences for individuals as well as their local experiences in
everyday life .

Globalization is often used in a positive sense to denote a global village of free

trade, hi-tech marvels, and all kinds of possibilities that transcend class historical
experiences&ideologies. .
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TYPES OF GLOBALIZATION/ VARIOUS DIMENSIONS OF

GLOBALIZATION:

Globalization is a process to create a more open world, in many areas, some of

which cover politics, economics, law and media.

Vast corporate empires, compliant governments and a globalized, consumer

monoculture; coupled with a universal ideological commitment to corporate
libertarianism, are the driving force, accelerating the era of globalization.

Globalization can be looked at from 5 different aspects viz, Economically,

Technologically,Politically,CulturallyandEnvironmentally.

Globalization&Politics:

Political globalization means that the countries worlds wide are supposed to act
multilaterally, and share and carry out the similar values and principles of, peace
and human rights.

Globalization and Its Effects on Economy:

In Economics, globalization largely comes down to free trade and an open market,
between all countries world wide.

Under globalization (all countries) are supportive to open their borders to foreign
products and not to protect their own markets, Primary goal of globalization is to
afford everyone get a better deal which would ultimately come out to be quite
beneficial to the third world countries. Who might somewhat tend to benefit from it.

Economically globalization has been greatly encouraged since World-War II.GATT

,and certain other regional trade agreements ,have been developed ,and this has in a
way ushered an era of free trade agreements ,leading to a surge in single market
systems .
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ROLE OF TECHNOLOGY AND TECHNOLOGICAL GLOBALIZATION:

The information technology revolution has thorough faxes, e mails, and the internet.
Resulted in, massive improvements in systems of communications

This I.T revolution has been instrumental in making the world become a smaller
place, thanks to immense innovation in IT, now world interaction is both quick and
easy.

B.P.O (Business process outsourcing), and L.P.O (Legal process outsourcing) are
the most important trade innovations, that have been introduced by globalization.

Cultural Globalization

Culturally globalization has been spread through, the media of films, television and
music.

For e.g. : Following second world war, U.S.A, Fearing the rise of communism,
actively encouraged and subsidized, the world wide distribution of films, effectively
advertising the (a) benefits of capitalism( b) and the American dream ,as a
consequence to the dilution of culture .

Impact of Globalization on Environment

Environmental problems are increasingly becoming global problems; therefore

countries are no longer able to look at the environmental issues in isolation. This
concept has been dramatically illustrated by instances such as: the nuclear disaster
at Chernobyl, and instances of depletion of ozone layer and acid rain over
Scandinavian countries.

It has now made several countries, to realize that, they now need to act collectively,
as collective efforts are in fact the only chance for (a) reversing or (b) slowing the
damage being caused to environment.
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ILLUSTRATION:

In light of the above discussion, relevance of globalization in the modern era can be
explained by means of an interesting illustration of the world converting into a
global village.

It is this very phenomena of globalization which makes it possible(a)for a

gargantuan ship(b)built in Netherlands and registered in panama (c)to bring Saudi
oil to(d)Texas refineries, that provide gasoline(e)for cars assembled in Japan and
Korea (f)Wherein German drivers, wearing clothes sewn in Singapore, from
Australian cotton(g)might be listening to an Argentine tenor, singing Italian
arias,(h) recorded on a magnetic cassette made in Mexico (I) being played on a tape
deck, assembled in China (j) in another car ,the driver might be using a Finnish cell
phone ,to tell a broker in New York, to buy stocks in a Canadian company, that does
business in Brazil ,this is exactly how the world has been converted in to global
village .

WHAT ARE THIRD WORLD COUNTRIES

Historical Background:

The cold war in its course, spawned, many third world rebellions, and thereby,
affected many small world countries.

Cold War:

After the II world war, there began an era of a cold war, between the U.S.A and
Soviet Union, the two super powers of the world.

Their differential views on government and politically correct society were, the
main reasons for the conflict .This confrontation of ideologies, divided the world
into two main power blocks, leading to the categorization of the countries in to first,
second and third world countries.

First world countries:

Countries which, associated with U.S.A and other of its non–communist allies,
came to be known as the first world countries.

Second world countries:

While on the other hand the countries supporting communism, and allied with
U.S.S.R, came to be referred ass second world countries.
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Third world countries:

Third world countries ,comprised of those countries, which did not have any
association, with either first world or second world countries , In fact these were the
countries ,which remained neutral, and were neither inclined towards the first or the
second world countries .

Composition of the third world countries

The third world countries comprise of the whole of Africa ,Asia ( apart from Soviet
Union ,China ,Japan ,Latin America and Oceanic islands of: Australia and New-
Zealand, consist of third world countries.

CHARACTERISTICS OF THIRD WORLD COUNTRIES:

Lack of money in the third world countries, means that, people of Latin America,
Africa and Middle East and Asia, live very differently to those living in countries
such as England and U.S.A...

Lack of money in third world countries, restricts development in various areas and
causes great increase in diseases ,it also stops people, from getting nutrition, that
they so desperately require .Thus in a way ,advanced western countries are capable
of influencing and do influence tremendous ,economic ,social and political
pressures on third world countries .

Characteristics of Third World Countries

Developing Countries:

Most of the third world countries are generally, developing countries.

• Densely Populated:
• Majority of the third world countries are over –populated, this is also amply
evident from the fact that these third world countries comprise of the, Two –
Thirds of the world’s total population . Our very own country India as a
matter of fact supports 14% of the world’s population on an area as less as
only 2 % of the world’s total land area.
• Majority of Third World Countries are Poor:
• A majority of the third world countries are extremely poor, and are engulfed
by a multitude of socio-economic problems; people of these countries are
extremely poor. Hunger and disease are quite common, to most of these
areas.

• Poor Infrastructure:
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• Poor infrastructure and lack of basic amenities are basic problems which
plague these countries .Lack of basic amenities and poor sanitation further
aggravates their problems.

HOW HAS GLOBALIZATION HELPED THIRD WORLD COUNTRIES

POSITIVE EFFECTS OF GLOBALIZATION:

Globalization has often been used in positive sense. It has been used to denote a
global village of free trade and hi –tech marvels, it in a way signifies all kinds of
possibilities which transcend, class, historical experience and ideology.

Different people view globalization in different ways; some view it as a process

which is inevitable and beneficial to future world economic development.

Globalization has been instrumental in increasing free trade, it has also been useful
an international exchange of labor and information technology, in short it represents
a beneficial process of economic development.

Even though, extreme opponents charge it with impoverishing the world’s poor,
enriching the rich and hold it responsible for, devastating the environment, yet
despite all these opposition, fervent supporters still see globalization as a high speed
elevator, to universal peace and prosperity.

The technological development that characterizes the past two decades, has been
instrumental in triggering a communication enhancement around the globe, and has
made the inter-connectedness between the global populations far greater.

Globalization effects, just about everything and every one locally, globalization has
impacted technology, and has in a way helped our communities, become more
updated, by encouraging active internet usage and communication.

Benefits of Globalization, which have been ushered on the Third World

Countries are as follows:

• Globalization tends to inter-connect the whole continent into culture and

values.
• It allows labor opportunities and enables labor standard up gradations for
third world countries.
• Globalization encourages an international open entrepreneurship, which
shall be instrumental in providing more substantial product diversity, from
immense to modest local consumers.
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• Business outsourcing :out sourcing of businesses ,has been another

achievement for globalization , So as to remain competitive B.P.O’s
(business process outsourcing )and L.P.O’s(legal process outsourcing),have
begun to outsource jobs, this in turn has facilitated the creation of a vast
pool of jobs ,and has led to subsequent employment, for e.g.:B.P.O tide
encompassing the Indian jobs markets, has in a way increased employment
in such third world countries.
• Globalization encourages better competition and competitive prices: local
businesses due to globalization see an increased availability of products to,
purchase from, all over the world, this in turn increases the opportunity of
finding variety of goods at a better and far more competitive price.

Note

Globalization over the past 20 years has become a key issue in many
countries. The industrialization of the second and the third world countries ,
by western civilization, creates many opportunities for the inhabitants ,not
only does it expand trading markets, but also promotes productivity and
efficiency, thereby improving the country, and integrating it into the
industrial world . This process not only benefits third world countries, but
also industrialized nations, who on being by allowed to export goods to
developing world, are able to increase their profit margins.

East Asia and Latin America, seem to have benefited from globalization,
globalization has also helped third world countries in maintaining stability
and production output.

HOW DOES GLOBALIZATION HARM THIRD WORLD COUNTRIES

INTRODUCTION:

Globalization is a confusing concept for some it conjures up images of: electronic

communications, an e-mail, global media and popularization of mobile phones,
while for others, it is about trade or the ability, to buy coca cola in rural villages in
Africa.

For yet others, it is about misappropriation and greed ,while on other hand, the
suicide by Indian peasant farmers ,ruined by agro-business and genetically modified
seeds , is yet another fact of the misdoings of globalization .Negative effects of
globalization, are manifested, most visibly, in wide spread poverty, throughout the
developing world, and have become one of the major threats, to both, human
progress and human security.
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It is very disheartening to know, that over the last decades, the disparity in socio-
economic conditions, have widened, and islands of prosperity, have continued to
flourish in an ocean of unspeakable poverty.

Even if the world co-operates and act as one country, the richer always gets its say,
in “What Happens” For e.g.: U.S.A is the richest country in the world, such rich
countries influence globalization to their own advantage ,and thereby ,end up
harming the economical and cultural issues , of the rest of the world .

GLOBALIZATION AND ITS NEGATIVE EFFECTS ON THE THIRD

WORLD COUNTRIES:

• Globalization may lead to chances of illegal trade:

Opening of trade paths (between countries), does not solely guarantee

legitimate products, globalization can none the less be used in the form of a
criminal process, for pumping drugs, terrorism and spread of weapons alike

• Globalization may lead to financial crisis and unemployment in third

world countries:

Instead of spreading wealth around, globalization and its current macro-

economic policies have brought Asian countries, a strong negative impact,
which has often taken the form of financial crisis and unemployment.

• Globalization is a very uneven process:

Globalization is a very uneven process ,with an unequal distribution of

benefits and loses , this imbalance leads to polarization or separation
between ,few rich countries or individuals, that gain benefits and the many
other countries that loose out or are marginalized .

Globalization, polarization, wealth concentration and marginalization are

linked, through the same process, in this process investment, resources;
growth and modern technology are focused on a few countries mainly,

(America, Europe, Japan, and East Asian countries)

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MULTINATIONAL CORPORATIONS AND THEIR INFLUENCE ON

THIRD WORLD COUNTRIES:

Moral challenges for businesses in U.S.A are difficult enough, considering

“balancing profit interests, against the need of consumers, employees, government,
and special interest groups.

This has in turn, led multinational corporations, based in Western Europe, North
America and Japan, to operate their manufacturing and other business facilities in
underdeveloped countries.

These large global companies exert enormous economic, technological, political,

environmental and cultural power, around the world (more particularly in third
world countries, for e.g.: General Motors is one such multinational .It is interesting
to note that General motors were the manufacturing company with the largest asset
in 1994, i.e. They had 198.5 billion in total assets, the figure being much larger
than the G.D.P, of all but a dozen or so third world countries.

However the actual problems with regard to these third world countries begin ,when
these corporations, begin to take advantages of the lax moral expectations ,of these
lesser developed countries .

Conclusion:
According ,to popular view globalization, is the inexorable integration of markets,
nation states and technologies to a degree never witnessed before ,and in a way ,that
is enabling, individuals, corporations and nation states, to reach the world, farther,
faster , deeper and cheaper than ever before.

Globalization is a process where by political, social, economic and cultural relations

increasingly take on, a global scale, which in turn has profound consequences, for
individuals and their experiences in everyday life.

Vast corporate empires, compliant governments, a globalized consumer

monoculture, universal ideology and a commitment to corporate libertarianism, are
the driving force, accelerating the era of globalization.

The advent of IT revolution has enabled a quick and easy world wide interaction,
and has resulted in the world becoming, a smaller place, concept of B.P.O’s and
L.P.O’S signify the importance of a globalized world.

Globalization is a multi dimensional concept, which has enabled the world to open
up in areas of politics, economics, technology and environment.

Globalization has had its impact on the entire world; however its impact has been
more prominent on third world countries.
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The third world countries comprise of the whole of Africa, Latin America, and Asia,
apart from (Soviet Union, China, Japan and oceanic islands of Australia and
Newzeland.

The third world countries were those, which were, neither inclined, towards first
world nor second world, In fact third world countries were those, which remained
neutral, through out the war.

Aniket Datta

5th Year Student, of:

(The Army Institute of Law, Mohali)

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Such Third world countries, are developing countries, majority of which are poor,
they are densely populated and lack basic Amenities of life.

Lack of money in third world countries, means that, people of Latin America,
Africa and Middle East Asia, live very differently to, people living in countries,
such as England and U.S.A.

The advanced western countries are capable of influencing and do influence,

tremendous (Economic, Social and political pressures on third world countries).

Like two sides of the same coin, Globalization too has had both positive as well as
negative influence on the third world countries.

While on the one hand, it has resulted in benefits such as, those of inter- connecting
the whole continent in to culture and values, improving labor standard up gradation,
ushering an era of more substantial product diversity, and providing of better
products at competitive prices,

On the other hand it has also resulted in chances of illegal trade, financial crisis and
unemployment, environmental degradation, unequal distribution of benefits and
losses and the resultant unemployment, and unequal distribution of benefits and
losses to the (third world countries).

However ,though globalization ,is often used in a positive sense ,to denote a global
village, of free trade, hi-tech marvels and all kinds of possibilities ,that transcend
class ,historical experience and ideology, extreme opponents ,charge it with
impoverishing the world’s poor, enriching the rich and devastating the environment
,still fervent supporters, see globalization ,as a high speed elevator to universal
peace and prosperity .

Thus in the end it would be rational to state that globalization, though a positive
phenomena, does have some negative effects, which too can be minimized by,
providing development initiatives and technological guidance to the third world
countries .
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