Globalization

All countries worldwide in one way or another are a part of globalization whether voluntarily or not. Globalization has its merits and demerits; however, I believe that the merits outdo the demerits. According to Bardhan (2006), globalization results to numerous hardships for the poor nations, however, it additionally opens opportunities that those nations could utilize. The difference between poor and rich countries is based on the difference in the ability to take up and utilize available opportunities to their economic advantage, for instance, globalization. Free trade economists suppose that benefits from the heightening tide of global specialization and investment holds the prospective of lifting all nations including the poor nations. Bardhan (2006) states that the lack of capacity of lots of poor persons to adjust and relocate with the evolving market conditions should be cautioned by enactment of policies such that the winners of the open economy share their benefits with the losers. For instance, the multinational Corporations, which have greatly benefited from globalization requires to share their gains with the local countries rather than impoverishing and exploiting their citizens. There is a proposition by economists that in the short run since domestic monetary institutions standards in the poor nations are weak there must be some specific control regarding capital flows to avoid a domestic financial crisis (Mislan, 2012)..

I second Bardhan (2006) in the argument that, for instance, poverty levels in sub-Saharan Africa rose from forty-two percent to forty-sin percent due between 1981 and 2001 due to factors such as civil conflicts, failed political regimes and corruption. In actuality, this has nothing to do with globalization. In fact, globalization has been seen to increase the wage levels in those countries and providing jobs to the citizens of the same nations. Nevertheless, rich countries  usually engage in globalization with vested interest, thus, after the resources are depleted they forego the so called globalization and shift elsewhere to hunt for more resources. The rich countries additionally should encourage and reduce restrictions they have imposed on poor countries exports in their countries.

References

Bardhan, P. (2006, April).  Does Globalization Help or Hurt the World’s Poor?  Scientific American, 294(2), 84 – 91.  Retrieved from
     EBSCOhost in Ashford Online Library.

Mislan, D. (2012).  Cross Cultural Perspectives.  San Diego, CA: Bridgepoint Education, Inc.