Mr Daniel Costa
What have been the main effects of globalisation on Less Developed Countries (LDCs)?
Globalisation can be seen as one of the most important force impacting on every economy in the world and is a complex and illusive process that brings about vast definitions and interpretations, making it a subject of intense debate and much controversy (Lambie, 2007) . Since the 1980s, Globalisation denotes the increasing connection and integration of the world economy, bringing new opportunities to Less Developed Countries (LDCs). Greater access to developed country markets through increasing trade, reductions in transportation costs and technology transfer have implied a fast downgrading of the concept of 'distance ' (Lee & Vivarelli, 2006), which intended to improve productivity and higher living standards to help the less skilled in developing countries, who are assumed to be a great majority of the population (Balakrishnan, 2004). Yet this definition of Globalisation is misleading and simplistic for any person and especially for Less Developed Countries to accept, as they are the ones experiencing the negative effects of this process.
Globalisation in LDCs has shown vast evidence of its impact on growing inequality in terms of employment and income distribution across and within nations, inconsistency in financial market and environmental deteriorations, hence why is a concept seen as benefiting the well developed countries at the expense of the less developed part of the world (Seifu, 2007).
The main effects of globalisation on Less Developed Countries whether positive or negative is highly debatable between opponents and supporters of globalisation.
For example, supporters of globalisation point out the link there is between increasing trade and economic growth and they conclude that trade is good for growth and consequently good for the poor in terms of employment and the reduction of poverty levels. On the other hand, opponents argue that globalisation has an
Globalisation can be seen as one of the most important force impacting on every economy in the world and is a complex and illusive process that brings about vast definitions and interpretations, making it a subject of intense debate and much controversy (Lambie, 2007) . Since the 1980s, Globalisation denotes the increasing connection and integration of the world economy, bringing new opportunities to Less Developed Countries (LDCs). Greater access to developed country markets through increasing trade, reductions in transportation costs and technology transfer have implied a fast downgrading of the concept of 'distance ' (Lee & Vivarelli, 2006), which intended to improve productivity and higher living standards to help the less skilled in developing countries, who are assumed to be a great majority of the population (Balakrishnan, 2004). Yet this definition of Globalisation is misleading and simplistic for any person and especially for Less Developed Countries to accept, as they are the ones experiencing the negative effects of this process.
Globalisation in LDCs has shown vast evidence of its impact on growing inequality in terms of employment and income distribution across and within nations, inconsistency in financial market and environmental deteriorations, hence why is a concept seen as benefiting the well developed countries at the expense of the less developed part of the world (Seifu, 2007).
The main effects of globalisation on Less Developed Countries whether positive or negative is highly debatable between opponents and supporters of globalisation.
For example, supporters of globalisation point out the link there is between increasing trade and economic growth and they conclude that trade is good for growth and consequently good for the poor in terms of employment and the reduction of poverty levels. On the other hand, opponents argue that globalisation has an
References: Balakrishnan, C. (2004). Impact of Globalisation on Developing Countries and India. Available: http://economics.about.com/od/globalizationtrade/l/aaglobalization.htm. Last accessed 13/12/2011. Birdsall, N. (1999). Globalization and the Developing Countries: The Inequality Risk. Available: http://www.econ.yale.edu/alumni/reunion99/birdsall.htm. Last accessed 14/12/2011. Lee, E., Vivarelli, M. (2006). The Social Impact of Globalization in the Developing Countries. Available: http://ftp.iza.org/dp1925.pdf. Last accessed 13/12/2011. Mostert, J. (2003). The impact of globalisation on developing countries. Available: http://www.essa.org.za/download/2003Conference/MostertJ_The%20Impact%20Of%20Globalisation%20On%20Developing%20Countries.pdf. Last accessed 13/12/2011. Picker, L. (2011). Distributional Effects of Globalization in Developing Countries. Available: http://www.nber.org/digest/aug07/w12885.html. Last accessed 14/12/2011.