GLOBALIZATION: Making the rich richer and the poor poorer?!?

March 14, 2007 : Wednesday

GLOBALIZATION: Making the rich richer and the poor poorer?!?

Jacinta Enerio 

Globalization….?  Ano nga ba ang globalization?

Different people mean different things by the same word, just like in a widely used term, globalization. The wideness of meanings attached to it seems to be increasing rather than narrowing over time, taking on cultural, political, economic aspect etch. Some interpret globalization as the integration of networks of communication, technology, economics, culture and other concepts of human life; Webster dictionary defined globalization as a process that renders various activities and aspirations worldwide in scope or application. Others interpret it as an ideology where there is one world, one government, wherein we will be having one worldwide group of leaders, one government and one system of laws that apply to all the citizens of the earth (parang Star Trek movie daw ang drama! hehe).

            Globalization brings opportunities but it also brings risks.

One of the opportunities globalization brings is the free trade. Free trade means that there should be no controls on trade or capital investments. Barriers on free trade such as tariffs, quotas, and other non-tariff barriers are eliminated. But what are the benefits of free trade? Aside from encouraging foreign investments, other benefits would include production gains and consumption gains. (Base on economics book of Dr.tereso tullao). Production gains refer to the increase in the amount of commodities made available to the world as a result of production specialization. On the other hand, Consumption gains are reaped by allowing a country to consume more commodities beyond its production possibilities through trade.

But looks like globalization turned out to be a one-way street. It is not what we see is happening today. What is happening is that, the 1st world is dumping their excess goods into the markets of the 3rd world so that instead of being developed, we are being conditioned to accept our dependency for what we eat, what we wear, and what we need upon the developed or 1st world countries. The reason why more goods are traded globally than those that come from the developing world is that, the developed world, being more industrialized, has a greater capacity to manufacture goods for export to the developing/3rd world than what the developing/3rd world can produce for export to the developed/1st word countries.

It is true that under globalization, the developing world is supposed to have the same right to produce and export their goods to the developed world. The reality, however, is that we simply cannot and does not have the capacity to manufacture and export goods in the same volume and at the same price as the goods that the developed world produces and exports to us. Thus, the developing world of which our country is a part would continue to be a favorite dumping ground of the products of the developed world under the globalization.

Aside from being a dumping ground, globalization DESTROYS JOBS. Global competition has led to new patterns of employment that has caused the displacement of millions of workers. Corporations now adopt production methods where only the fittest survive. Indeed, globalization has created a worldwide unemployment problem. Globalization increases the gap between the rich and the poor; GLOBALIZATION MAKES THE RICH RICHER, AND THE POOR POORER!!!! In many countries cheap labor made a comparative advantage. As a result, majority of workers lived in poverty line. According to the information I’ve read in the internet, the richest 1% of the world’s people receive as much income as the poorest 57%; in the East Asia and the Pacific there are 280 million people living on less than $1 per day.

Oops! Di lang yan, ayon sa nabasa ko, meron pang ibang negative effects ang globalization. Globalization DESTROYS economies, democracies, indigenous cultures and environment. Globalization destroys economies in a manner that economic policies are customized to fit needs of other countries. National industries are directed toward international competitiveness and not toward national stability and prosperity. It destroys democracy in a way that multi-lateral institution such as WTO and IMF are overpowering governments. These institutions are rendering governments and national sovereignty useless particularly where economic policies are concerned. Moreover, these institutions are not elected by the citizens. They are selected only by the corporate elite or the leaders of the developed or 1st world countries. In effect, a few unknown individuals are running the world’s economy. Globalization destroys indigenous cultures in a way that masyado na tayong naapektuhan ng impluwansyang banyaga, ang ating pananamit pati na ang ating pamumuhay ay nasakop na rin ng banyagang impluwensya.  And last but not the least, globalization destroys environment, corporations worry more about production costs than global warming which they cause because most of them emit carbon dioxide that has negative effects on the world’s climate.

1 Comment »

  1. katigbak,karla elaine Said:

    before I’m confused what globalization is? But thanks to you now I know, my side after reading your article is that I’m anti globalization because as what you have said and as shown in your advantages and disaadvantages it is more to pro rich countries. Nice work jasmine..

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