Benefitsof Globalization in Developing Countries
Globalbusiness has been of critical importance for many developingcountries. The fact that most of the countries have experienced slowgrowth makes globalization the primary factor that can providefar-reaching solutions. Globalization has been at the center stage inrevolutionizing the economies of many developing countries across theworld. Globalization involves the expansion of trade to create moreopportunities that instigate and propel the economies to higherpedestals. Countries that are concerned about economic growth havebeen on the frontline in creating an environment that favorsglobalization to take place. Many sectors of the economy, especiallyin developing countries, can only be salvaged if they realize theneed to take full advantage of globalization. The opportunities thatglobalization has brought forth for the developing countries areimmense, making people lie a better life. The lives of the peopleliving in the developing countries have experienced totaltransformation as a result of globalization. Therefore, it iscritical for governments of developing nations to create policies andmechanisms that favor globalization, in order to realize the benefitsthat come with it.
Someadvantages of globalization in developing nations are:
Increasedincome levels:The enhancement of globalization has been a major factornecessitating an increase in the level of incomes for the people indeveloping countries. The growth of the business as a result ofglobalization between the countries has made it easier to create jobopportunities in developing nations, thereby alleviating povertylevels. The economic status of the people has been determined by thelevel at which they can take up existing opportunities in business.Due to increased levels of income to in developing nations as aresult of globalization, they have become self-reliant. The capitalbase of the countries has also continued to expand since as a resultof massive investments taking place. For instance, Indonesia is acountry that has continued to witness a high number of foreigninvestments. Apparently, the country witnessed a high number offoreign investments in the manufacturing sector from 1991 to 1996which rose from 708 to 1318, leading to an increase in the level ofincome (Tomohara & Takii, 2011). Furthermore, the foreign directinvestments in Indonesia increased from $ 0.6 billion to $ 6.2billion between 1996 and 1998. An influx of foreign organizationsfocusing on establishing businesses in the developing nations hasplayed a fundamental role in liberating the people from unprecedentedpoverty, as asserted by Lee & Vivarelli (2006). As such, thestandards of living have also improved from time to time, making thenations to cut down the rate of borrowing. More Countries have alsomoved from low to middle-income levels due to an increase in GDP.
Growthin healthcare and education systems: Globalization has been the most profound aspect that creates jobopportunities where proper skills are required. Therefore,globalization has made it possible for the people to get access toquality education to minimize the levels of illiteracy and make thecountries to become more informed. It is evident that the number ofeducated people has continued to soar high as a response toglobalization. This has raised the living standards, as more peopleget employed in organizations which are in need dire need of skilledlabor. Similarly, globalization has been the catalyst for improvedhealthcare for organizations in the sense that it has brought forthtechnological development that enhances the healthcare provision.Provision of affordable medicine and proper sanitations has been as aresult of globalization in most developing countries as stated byWelander, Lyttkens & Nilsson (2015). As such, various diseasessuch as diarrhea and typhoid have certainly been combated. Becausethe poor majority have also been able to get access to resources,their health has improved as a result of resounding health policies.Globalization is one of the reasons for decreasing mortality rates inmany developing nations. One of the countries that have benefited inthe heath sector as a result of globalization is Cote d`Ivoire whereinfant mortality rate reduced by over 7.3 % between 2000 and 2009(Lee & Vivarelli, 2006).
Economicgrowth:According to Ha (2012), firms within the developing nations are in aposition to access larger markets globally to expedite economicgrowth and development due to globalization. Due to increased flow ofresources from developed countries, the developing countries canenhance operations and ensure that the businesses grow at atremendous rate to stabilize the economy. The fact that directinvestments are being made in the developing countries by the alreadydeveloped nations, it has possible to create economic fortunes.Through market integration, developing countries, especially inAfrica, have been in a position to diversify in trade. Globalizationhas enabled stronger relationships between developing countries anddeveloped nations, and it is through such close collaboration thateconomic growth is achieved. China and India are good examples ofcountries whose economies have experienced massive growth as a resultof globalization. Due to economic growth occasioned by globalizationin China, the rate of poverty reduced to 15.9% from 85% between 1981and 2005. Despite the fact that developing countries are deemed torely too much on developed countries, the trend has proved to havepositive impacts.
Accessto new global markets:Through globalization, developing nations have had the privilege totrade freely at international level, as a result of the removal oftrade barriers. They are in a position to get access to technologicalequipment which would have been impossible if they did not take partin the global trade. Nations especially those considered to be in thethird world category have suddenly become part of international tradethrough participating in supply chains and production networks. Suchtrade has necessitated expansion opportunities, and the countrieshave mutually benefited. Access to global markets implies thatdeveloping nations can get goods and services that would not havebeen possible if they did not participate in trade at theinternational level. They are also able to diversify and produce newproducts that befit international standards.
Opponentsof globalization have often been categorical that the trade resultsto widening the disparity in incomes of the poor people in developingcountries. Primarily, it is claimed that as the trade betweendeveloped and developing countries intensify, the level ofunemployment increases. According to Tomohara & Takii, (2011),there is a wide wage gap between the poor and the rich in the thirdworld countries. Furthermore, there is a high level of incomedisparity between the educated and the less educated individuals.Many people tend to believe that as technological growth a notchhigher, businesses tend to be automated, resulting in high level ofunemployment. However, in dispelling such claims, globalization tendsto increase the level at which employment opportunities are createdsince more industries are opened as a result. To a larger extent,income disparity may be reported, despite not being a commonoccurrence since more lucrative job opportunities are createdconsistently. Also, people tend to gain skills necessary ininternational trade, thereby minimizing income disparities as theyare employed in large numbers. However, income inequality ispropagated by poor and inconsiderate government ideologies aboutglobalization, as opposed to the system of global trade itself.
Itis also claimed that globalization leads to alarming levels ofunemployment. Those people who are less skilled are not able to seizejob opportunities since global economy requires qualifiedprofessionals. Below par employment levels might continue to bedetrimental to the affected people if they do not acquire necessaryskills needed. The issue has been brought about by the fact that theimplementation of technology in various sectors of the economy hasincreased the demand for skilled labor only. However, in contrary tothe argument that many people have put across, business growth as aresult of international trade has been paramount in the creation ofjobs for both skilled and unskilled labor. Various aspects ofbusiness require people with various qualifications be employed, andtherefore, it is unusual to claim that it is only those with epicqualifications who can be employed.
Anintegration of the world economies is a move that should be supportedby all means possible to maintain growth and development of thedeveloping nations. Countries should foster exceptionalcollaboration in making sure that they serve not only their interestsbut also the interests of other countries. Open trade should becarried out across all boundaries to create global opportunities forall organizations. It is also necessary for the developing nations totrain their workers to keep up with the global economy standards. Itis only through globalization that nations can fully discover theireconomic potential and take up the existing opportunities in themarket. In spite of globalization being relatively detrimental,developing countries have gained more benefits from it.
Ha,E. (2012). Globalization, government ideology, and income inequalityin developing countries. TheJournal of Politics,74(2),541-557.
Lee,E., & Vivarelli, M. (2006). The social impact of globalization inthe developing countries. InternationalLabour Review,145(3),167-184.
Tomohara,A., & Takii, S. (2011). Does globalization benefit developingcountries? Effects of FDI on local wages. Journalof Policy Modeling,33(3),511-521.
Welander,A., Lyttkens, C. H., & Nilsson, T. (2015). Globalization,democracy, and child health in developing countries. SocialScience & Medicine,136,52-63.