The negative effects of the globalization process on the least developed countries

Résumé du document

The globalization process began thirty years ago with the borders opening promoted by the General Agreement on Tariffs and Trade (now called World Trade Organization). In spite of the fact that 32 of the 50 LDC are members of the WTO, their influence is not as important as the United-State's and the European Union's. This phenomenon can be described as the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade. Globalization allowed a lot of countries to develop their economy and to increase their incomes. However, we can notice that several countries don't always take advantage of this process: the Least Developed Countries (LDCs).

The LDCs refers to a category of countries created in 1971 by the United Nations Organization (UNO), grouping the socioeconomically least developed countries of the world together. They have the lowest Human development index (HDI). The current globalization process causes economic issues to the Least Developed Countries, but it can also being viewed as a problem at a social, political, cultural and environmental level. The aim of this coursework is to show in what extend globalisation has negative effects, in particular from the Least Developed Countries' point of view.

Agriculture is very important in the development of Least Developed Countries. For the majority of Least Developed Countries, agriculture generates 30 to 60 per cent of its growth domestically product, it represents 40 to 90 per cent of the working people and it is an important devise source (IMF.com, 2009). In consequence, we can see agriculture is the economy main point for Least Developed Countries. And yet, the developed countries introduced a large grant system in order to allow to selling its overproduction. European and American products became very attractive on international market. For example, a European cow farmer win 2 Euros per cow per day in order to help him to bear his costs (http://ec.europa.eu, 2009).

Let's see the tragic effect of this system on the economy of Senegal and Kenya. Senegal is one of Least Developed Countries. Between 1995 and 2003, a lot people lived off the onion culture. However, European countries exported their onion product to Senegal and with the PACS which is a European grant in agriculture. This allows to European onions being cheaper than local onion. As a consequence, Senegalese producer of onion made bankrupt because of globalization and this unfair competition and unemployment rate increased.

Extraits

[...] Indeed in many countries of the Asia-Pacific, child labor is allowed. Therefore, many firms use this way of labor, preferring to employ these person, because they are well qualified and cheaper. In 2006, International Labor Organization estimated that 246 million children work in the world and Asia is the first country where the most important number of children are working (127 million). For instance, maquiladoras. These industrial factories represent one of the most impressive forms of exploitation of the border by American interests. [...]

[...] Baumol et W.E. [...]

[...] The factory receives the best account of labor cheap in the neighboring country. These regions remain one of the most obvious examples of the use of low skilled, or approximately 3.5 million children work, including 70% receive no salary. Conclusion TO CONCLUDE, WE CAN SAY THAT THE CURRENT GLOBALIZATION PROCESS HAS SEVERAL NEGATIVE EFFECTS IN THE LEAST DEVELOPED COUNTRIES' POINT OF VIEW, FIRST IN AN ECONOMIC PERSPECTIVE, BUT AT A SOCIAL, POLITICAL, CULTURAL AND ENVIRONMENTAL LEVEL AS WELL. HOWEVER, THIS STATEMENT HAS TO BE MODERATED. [...]

[...] In Ghana the mining investments forced local population to settle far from their home lands. (Amnesty International: http://www.amnesty.org/ , 2009) Dependence in terms of investment in least developed countries THEN, ANOTHER PHENOMENON CAUSED SEVERAL SERIOUS CONSEQUENCES IN REGARDS TO LDS' ECONOMIES. INDEED, DEVELOPED COUNTRIES INVEST IN THESE COUNTRIES THROUGH THE OPENING OF BORDERS AND THE LIBERALIZATION OF ECONOMY, WHICH IS SYNONYMOUS WITH GROWTH IN THE SHORT TERM. HOWEVER, DUE TO THE INSTABILITY OF THE LEAST DEVELOPED COUNTRIES (DICTATORSHIP, WAR, OR EVEN DEPLETION OF RESOURCES), FOREIGN INVESTORS WITHDRAW THEIR MONEY. [...]

[...] IN A GLOBAL ECONOMY MARKET, THESES COUNTRIES ARE EXCLUDED FROM THE CURRENT DEVELOPMENT OF NEW TECHNOLOGIES, INDEED, DESPITE THE ACTUAL EXISTENCE OF TECHNOLOGY, THE MAIN PROBLEM IS THAT THE OVERWHELMING MAJORITY OF LOCAL WORKERS ARE NOT SKILLED ENOUGH TO USE IT IN AN EFFICIENT WAY, AND TO COMPETE AT A MACROECONOMIC LEVEL (HTTP://WWW.STWR.ORG/, 2007). THIS ISSUE ACCENTUATE THE GAP BETWEEN WESTERN COUNTRIES AND LEAST DEVELOPED COUNTRIES. Paradoxically, globalization did not benefit to all the Least Developed Countries. While some became more integrated and thriving, some became more marginalized and isolated. [...]