Discuss the negative impact of globalisation.

The negative impact of globalisation:

(i) The experiences of globalisation so far, particularly in the Third World countries is not positive. It has given rise to serious risks for these countries because most of them are unable to become internationally competitive. The negative consequences of globalisation are more dominant compared to its positive consequences. Increased trade, new technologies, foreign investment and expending internet connections have no doubt, led to substantial economic growth in the world today but the gains of economic growth are not evenly distributed among different countries. There are many problems emanate from this basic weakness.

(ii) The economic process under globalisation is connected with market expansion. Open competitive markets may guarantee efficiency, but not necessarily ensure equity. Therefore, great reliance on the ‘invisible hand’ of the market is pushing the world towards unsustainable levels of inequality.

(iii) It has rightly been said that “markets are neither the first nor the last word in human development. There are many activities and goods, which are important for human development, but now-a-days they are overlooked in the rush to integrate with the global market. It is evident in areas where market frontier has moved in recent decades such as in Asia and Africa.

(iv) Globalisation has migration to western countries, old couples are feeling increase due to far aware their children. The rural people are moving to big cities, the anomalies in urban life, the collapse of the extended family and the replacment of sentiments by money as the basis of human motivation.

(v) Global capitalism is relatively free from regulations. But it enjoys the full support of powerful capitalist countries. A number of international economic institutions such as the International Monetary Fund (IMF), the World Bank and the World Trade Organisation (WTO) reinforce the ideology of global capitalism. These countries and institutions create the political and legal conditions for the global market. Their effects of structural adjustment policies in Asia, Africa and the South Pacific imposed by the IMF and the World Bank have been no less than disastrous. They have decreased the access to education, health and decreased the access to education, health and nutrition to the underprivileged sections of the population.

Of course, it has extended these facilities mainly to the most privileged groups. Even in Europe, where the welfare state was born, there has been severe reduction in there useful facilities.

(vi) At present, for developing countries, globalisation has created more risks and challenges than the advantages and opportunities. The most direct impact has been on jobs. For example, unemployment rates doubled in Asian countries where the depression of 1997-98 was worst.

(vii) Wages and salaries in the current labour market are generally low. Intense competition for employment means that workers have low capacity to bargain in most countries. The real wages throughout Latin America and Africa have yet to return to levels considered normal twenty years ago.

(viii) Failure to create sufficient employment has undermined the prospects for poverty reduction. The number of people living in poverty fell in mid-1990s but then began to rise again in almost all countries. This is not because the world as a whole has been getting poorer but because the benefits of growth are not evenly spread. In reality, there has been a remarkable increase inequality over the past decades. In the developing countries, the rich can easily adjust to the new environment, but the poor are becoming poorer.

(ix) The globalisation is problematic not only because it complicates economic relationships between nations but also, because it concentrates economic power in the hands of the MNCs such a concentration of economic power leads to convergence of political and social power.

(x) Globalisation curtails social and economic rights of common citizens. It adversely effects social policy and reduces the role of state activities for the benefits and welfare of the common people.

Conculsion – Globalisation’s negative impacts have created dissatisfaction among the masses of developing countries. The people of these countries are concerned about numerous international negotiations which are taking place on agriculture, services and patent protection. The concern is whether the developing countries would get fair deal in these agreements.

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M. Imp.