Discuss, comment, and organize your thoughts on the future of less-developed countries in the age of globalization. Date Globalization Globalization is referred to as the activity of changing the current world that we occupy. The world is shifted from a place that is rather isolated to a place that is characterized by integration. Globalization calls for a better political and economic integration between different countries thus resulting in a continuous process of sharing ideas. The invention of better and sophisticated technology has converted the idea of globalization into a reality. Some of the advantages associated with globalization include the presence of free trade.
In the recent past, countries could not carry out trade activities in a free manner due to the existence of many trade barriers such as regional taxes. The restrictions that affect the process of exportation and importation are reduced through the process of globalization. Globalization also comes with consumer and economic benefits for the less developed countries in the world. At this moment, population making up such countries can reduce the costs they incur when assessing products and services. The countries that are less developed also enjoy a better range of products in their local markets to choose from.
International companies that could not previously access the local markets are at this moment enabled to provide competitive goods and services that in turn cause a positive reduction in consumer exploitation. Also, globalization provides a much-required opportunity for countries that are still not properly developed. As noted in the literature, globalization is a vital tool that enables poor countries to focus more on their strengths other than their shortcomings.
For instance, a nation that has vast oil resources but less agricultural output is empowered to continually supply its indigenous commodity other than pay irrelevant attention to its lack of agricultural products. The lack of worry is managed by the absence of restrictions that are imposed on imports. Globalization enables the movement of labor in a free atmosphere. The citizens of a poor country can move from their country to search for greener pastures in other countries that are more developed. The workers can access proper payment through putting their skills up for the offer.
As a result, only the highest bidder can make use of their skills providing a much-required job opportunity (Cypher, 2014). Negative effects of globalization on less developed countries. Regardless of how globalization may be perceived to be a good move for every country, the process comes along with several disadvantages. To begin with, the small countries that are least developed suffer the most. Some globalization concepts are not beneficial to smaller countries as they do not have the capacity to keep up with the playing ground provided by globalization.
Globalization tends to leave the developing countries behind. A majority of policy makers have stated categorically that the less-developed countries are at a position where the risk of being used as a stepping stone by developed countries is relatively high. Concepts of globalization such as removal of restrictions on imports result in less revenue collection for these countries. As a result, international companies with their roots in more developed countries end up providing unnecessary competition to local firms. The concept of free trade lacks the capability of providing the less-developed countries with the much-needed protection to enhance economic growth (Briceno-Garmendia et al. , 2004).
Globalization also results in straining the job markets for less-developed countries. The process of enhancing a free flow of labor from one country to another also has its downsides. The citizens of such countries who are properly skilled tend to migrate to more developed countries in search of greener pastures. As a result, less-developed countries are left with a strain in the labor resource. Globalization does not encourage recouping of investments for less-developed countries.
Countries that are poor and highly depend on public funding from either internal or external loans to fund their education systems are greatly affected by globalization. This is disastrous in the sense that the government uses loans to educate its citizens who later on run away to developed countries in search of better job opportunities. As a result, the poor country is left with a constricted labor resource to enhance the recoupment of investments (Cypher, 2014). The companies in less developed countries are not protected from international companies that aim to use globalization for their empowerment.
With the current development in technology, companies have learnt the art of self-empowerment from cheap and readily available resources in the poor countries. An example is where a company could exploit the lack of jobs in a country and, therefore, employ workers who work for lengthy hours with a similar wage range. The ability of companies to directly trade with other countries where they are not based in enables such companies to exploit the loopholes in the tax system of these countries. A poor country does not have a say when international companies register in other countries to avoid taxation. Globalization also has a negative impact on the environment.
Experienced observers have come up with a conclusion that the removal of trade restrictions enables the entry of foreign companies. As a result, they engage in the excessive exploitation of resources that leads to the destruction of the environment. In a simpler context, the entry of foreign firms to the poor countries results in a strain of the available resources. In conclusion, globalization results in the loss of cultural identity for the less-developed countries.
I understand that a better cultural hegemony is beneficial to countries but as a result of globalization, less-developed countries suffer from the entry of foreigners who come with their beliefs that might not be beneficial to the cultural identity (Knell, 2006). The role of Developmental state in achieving developmental objectives. The 20th century is famous for major world wars, decolonization, the digital revolution and advancement in technology and communication. The need for development can, therefore, be considered to be driven by a historical force as well as a stage of the capitalism that occurred during that period.
The capitalism came up with concepts such as globalization that require countries to develop key developmental states for economic development. A developmental state has an active role to play when guiding the achievement of developmental objectives. The developmental state utilizes the resources in a country, its influence to deal with poverty and finally expands the economic opportunities (Cypher, 2014). A developmental state results in a balance of the social development and economic growth thus achieving developmental objectives. Every nation including the less-developed countries has to exercise a developmental state to shape the composition and output of their economy.
The developmental state still has an active role to play in the globalized markets but require the addition of a few elements. Nowadays, developmental states have to include a range of policies and instruments to effect the state appropriately. For example, policies have to be built around the regulation of companies in the competitive industry as well as the trade. Policies also need to incorporate a proper distribution of assets and income.
The developmental state policies should also use efficient fiscal and monetary policies. In conclusion, policies should direct the state ownership of important industries in a country (Cypher, 2014). Conclusion Globalization has several benefits to every country, but the negative challenges it poses to less-developed countries leaves a lot to be desired. The degree of developmental state intervention in the times of globalization is dependent on whether a country has made a choice to abandon economic development and redistribution at the mercy of globalization. A good developmental state should create a strong public service in the developing countries to empower an environment that enhances investment.
Therefore, every less-developed country requires a strong developmental state to overcome the effects of globalization. Bibliography C. Briceno-Garmendia, A. Estache & N. Shafik. (2004). Infrastructure Services in Developing Countries: Access Quality, Costs and Policy Reforms, World Bank Policy Research Working Paper 3468. Washington DC. Cypher, J. M. (2014). The Process of Economic Development. Routledge. Knell, M. (2006). "Uneven Technological Accumulation and Growth in the Least Developed Countries”, Background paper to The Least Developed Countries Report 2006.