Hidden Dangers of Globalization

Hidden Dangers of Globalization

“Globalization may improve growth rates, increase productivity, enhance technological capability, but it cannot redistribute created wealth and income in favor of the poor. In fact, it does the reverse – it redistributes wealth and income in favor of the not so poor” (debate on “Globalization and Poverty” organized by the World Bank Development Forum in mid-2000). Consequently, this results in an increasing inequality between the poor and the rich; abuse of human rights; and loss of culture identity.

        As countries open their market to globalization, they become a cheaper supermarket of foreign goods, destroying local industries and, thus rendering thousands of employees jobless. Although some may have benefited from liberalized economy, most people continue to languish in poverty. On the one hand, the rich industrial countries have obtained large gains from increased trade and faster growth. On the other hand, most poor countries have been harmed and their economies shrank. As a consequence, the gap between the poorest and the most affluent countries has increased dramatically reaching the point in which many developing countries have been marginalized from the global economy.

        Working conditions and treatment of workers in industries that manufacture labor-intensive products -mainly in poor countries- are cause for concern. Exploitation and abuse of workers have been found to be common in foreign-owned industries. Workers are paid a few dollars a day and may be required to work six days a week, and overtime during peak periods. There exist disciplinary fines for talking, for coming in late, or other reasons; which may eventually take form of corporal punishment. Repressive techniques may be used to prevent workers from leaving their jobs.

        “Globalization is, to a great extent, a process driven by large corporations, which shrinks time and space, mainly through the use of communications technology, homogenizes cultures and cultural identities, reduces the importance of nation-states and instantaneously transfers financial resources and commodities around the world” (John P. Hogan). The richest countries that have already undergone the scientific and industrial revolutions, accept globalization as an inevitable process that is good and serves to the principles of autonomy, nature and progress. The poorest countries see the potential good in globalization, and admit the possibility of economic and political gains, but most of them perceive this process as a new and more fateful form of colonialism. Cultural and local identity is destroyed to create a larger economic culture, in which Capitalism rules.

        While technological progress, advances in communication, increased flow of goods, services and people, and other globalization benefits are easily seen; its prejudices, such as the widening gap between poor and rich, exploitation of human rights, and destruction of cultural roots, are hidden and should be causes for concern.

Sources:

• Globalization and the Developing Countries: Emerging Strategies for Rural Development and Poverty Alleviation, D.Bigman, CABI, 01/01/2002.

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• Cultural Identity, Pluralism, and Globalization, John P. Hogan, CRVP, 01/01/2005

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