Effects of globalization on developing countries and communities

¶ … Globalization on Developing Countries

Globalization is an increasingly widespread phenomenon in the world today. Indeed, an increasing amount of countries are entering the global arena in order to take advantage of all that is offered. Both developing and developed nations are now working together to create the concept of the "Global Village," in which every country, business and individual has the opportunity to create a livelihood on a global scale.

This is not to say however that globalization does not have its challenges. One of the major problems the world currently faces is the increasing gap between the rich and the poor, as well as obesity and hunger. The rich and powerful countries appear to exploit as much as they can of the environment in terms of both natural and human resources. This perception creates mistrust and resentment among poorer countries.

At the heart of this resentment and mistrust is a lack of adequate information access and resources for poor communities and countries. This lack of information creates a barrier to global entry for individuals who have traditionally relied on their environment for sustenance. Any attempt by those in power to impose policies and standards upon these communities is then met with a basic resentment and mistrust that lies in a perception that control is being taken by outsiders. This resentment can be diminished by means of information.

It is important to provide poor communities and developing countries with the empowering force of access to information. Such access will help these communities to join the global effort towards sustainable practices both for themselves and for future generations. In this way, globalization can have benefits for everybody involved, but it will take considerable effort, particularly from those in power. All countries need to make the effort to create an attitude of openness and receptivity towards each other in order to make the most of their opportunities.

In its current manifestation, globalization has been a controversial issue since the beginning of the 20th century. However, increasing individuals, businesses and countries are not beginning to recognize the reality of globalization, and are concomitantly creating strategies that will help them benefit from the phenomenon.

According to the Egypt State Information Service (2003), the current shape of globalization is the result of a revolution in communication and information. Technology such as the Internet and other electronic forms of instant and cheap communication are creating what has become known as the "global village;" a worldwide community in which individuals and nations merge by means of communication and mutual understanding.

It is also important to recognize that, while the economic sector has perhaps been most strongly affected by globalization, this is not the only sector affected at all (Egypt State Information Service 2003). Indeed, the phenomenon transcends purely economic bodies such as the GATT and the World Trade Organization in terms of knowledge, intellect, culture and communication technology. A mutual understanding among individuals and groups from widely differing cultures is then effected by means of interaction and the free flow of information. A better understanding is then created among the different nations of the world, in effect discarding geographical and other physical borders.

The Egypt State Information Service (2003) refers to this interaction as the "Quiet Dialogue." This is also important in terms of the media, and particularly for the media represented within and by developing countries. Many developing countries now have access to printed and audio-visual media from across the world by means of Internet technology. This access provides these countries with the means to enter into communication and economic interaction within the global arena. On a global scale, the possibilities opened by the Internet are therefore significant in terms of transcending centuries-old limitations imposed by poverty and isolation. Two excellent examples of such empowerment include Egypt and India, which have become important role players on a worldwide economic and cultural scale.

Another important issue to recognize is that globalization has fairly recently become the subject of increased controversy. This is particularly so in terms of developing countries. Some believe that these countries are bound to be even further victimized and exploited by the most powerful forces in the global financial sector. Others in turn believe that these very countries, as mentioned above, can be empowered to use their cultural, political and natural resources in order to empower themselves and uplift their citizens from the trap of their poverty.

Few would however disagree that globalization has not affected lives and cultures across the world. Those who ignore or deny globalization and its possible benefits, do so at their peril. Indeed, attempting to obtain distance from the globalization phenomenon rather than being part of it could have an even more dire effect than those projected for globalization itself. While globalization could set a precedent for abusing the rights of developing countries, a lack of participation creates an even greater platform for perpetuating poverty and isolation from the rest of the world. Indeed, it is undeniable that the globalization phenomenon has created a revolutionary experience throughout the world, with varying degrees of controversy, in terms of the economy, politics, technology and culture (Egypt State Information Service 2003).

In terms of the economy, globalization creates not only the opportunity for abuse and exploitation, but of approached correctly, it also provides for the free movement of commodities, services and capitals. Countries can benefit from each other by creating a balance of wealth in terms of both goods and capital in the spirit of fair trading and respect.

This is also the case in terms of scientific and technological developments. Developing countries have indeed already drawn benefits from these by having access to information through the Internet, and by being able to better care for the poor and ill by means of the latest in medical and food technology. In this way, information and ideas, along with physical commodities and capital, are made more accessible to all nations of the world by means of globalization.

For better or worse, it appears that globalization has become an unstoppable phenomenon. Individuals, businesses and countries may choose to ignore this and distance themselves, or they can choose to accept and study globalization to draw the most benefit for themselves and their citizens from worldwide information, capital, and trade.

II. DEFINITION AND CONCEPTS OF GLOBALIZATION

In addition to its current effects upon developing countries, globalization has also resulted in considerable controversy in terms of its origins. Some place it as far back as ancient Greece, while others believe that the economies of ancient cultures were simply too different from those prevalent today to qualify as globalization as it is currently known.

In this regard, Moore & Lewis (2009) note that Sir Moses Finley's writings during the 1970s began the tradition of ancient economies being entirely irrelevant for the global economy today. Indeed, Finley's opinions were left unchallenged and are even today accepted as true in most learning environments.

The authors note that, while Finley's observations regarding the ancient Greeks were much more acceptable than those he held about the Romans. Indeed, just after the turn of the millennium, British scholars began to challenge these observations to investigate certain features of ancient Roman economies as much closer to those today than had been believed in Finley's day.

According to Moore & Lewis (2009), the ancient world indeed seem to know a kind of globalization and indeed a somewhat familiar world economy, mostly involving Europe, Africa and Asia. According to the authors, a type of "hemispherization" was manifest in the trading economy from Spain to China. The authors believe that ancient history does provide some insight in the global economy of today's globalized world.

Long-distance trade for example was at the order of the day as early as during the Stone Age. The city Sumer in Southern Iraq provided trading opportunities before 3000 BCE when its temple and royal palace were transformed to become public sector spaces. Both foreign and local trade occurred here. Over the centuries, private merchants developed connections further away, which included the Indus Valley, Egypt and the Aegean in the global trade environment.

Other ancient traders included the Assyrians and Phoenicians; the latter being responsible for the origins of maritime capitalism. The first manifestation of a multinational company as it exists today was the family businesses of the House of Ashur-Imitti, operating from northern Iraq as their headquarters. Later, the majority of the world trade system moved to the Mediterranean, with Cadiz, Spain and Nineveh, Assyria being major participants.

Egypt and India were already world trading partners in the ancient worlds. This is interesting in the light of the fact that they are considered as developing countries in today's globalized environment. The development of trade across Europe and Asia further manifested itself in terms of mixing cultures. The unification of Assyria and Babylonia by the Persians for example had the effect of a cross-cultural mixture governed by a single rulership. This resulted in the first manifestation of cross-cultural management, and furthermore the link between Europe and Asia was established in this way.

India was also part of this globalized trading world. The cities within the Indus Valley

were well planned and included a trading system that was managed much in the same way as that in the Middle East. Indian socialism, combined with an economy of private managers played a significant role in the success of their trading endeavors. Moore & Lewis note that ancient India could well have been the inventor of supply-side economics. This claim is based upon the Arthashastra, an Indian manual for economic planning and political policy, and how these should integrate to ensure the economic well-being of the country. General Indian thought was however much more focused upon the afterlife than upon successful economic and trade policies in the physical world.

According to Moore & Lewis, China was far ahead in terms of technology and management theory. Chinese thought was much more practical than that of India. With the collapse of the Shou dynasty during 600 BCE, the thinkers of the time were forced to carefully construct a system for social management. The centuries that followed saw both kind leaders such as Confucius, and cruel, controlling philosophies such as that formulated by Han Fei. After the death of the Dragon Emperor, Shihuangdi, subsequent leaders made an effort to integrate China in the rest of the world's trading system once more.

These developments set the stage for the current system of globalization. Although many developing countries and advocates against globalization have offered considerable resistance as a result of fearing exploitation and abuse. However, countries such as India and Egypt are realizing the importance of participating in rather than resisting the global arena.

At the heart of such participation is the current drive towards the spread of information, the elimination of national borders, and a focus on increasing similarity rather than differences among communities throughout the world (Egypt State Information Service 2003). Others however still hold the opinion that globalization is no more than the result of individual nations to control their own economic affairs. Opponents also view globalization as an attempt at dominating the world market by a few powerful companies, while all other social and national elements are repressed by economic considerations. It has however been established that globalization, whether for good or evil, is a persistent phenomenon, particularly in the light of new communication technologies. Hence it makes little sense to demonize it or distance oneself from it.

Several international entities, agencies and concepts have arisen as a result of globalization. The most prominent of these is the World Trade Organization (WTO), established during 1995 to replace GATT. The WTO is supported by international institutions, and is established according to the Briton Woods Agreement (1944).

Multinational companies have internationalized the economy to the extent that, according to 1998 figures, 30,000 companies were responsible for more than half of the world's production. Value assets for these companies exceeded $92 trillion. Multinational companies are the most common phenomenon associated with globalization.

Proponents of globalization note that it is beneficial not only on the scale of collective businesses, but also for individuals. Individuals are able to enter the global arena and gain international recognition for their products and work. On the international scale, both individuals and businesses have the opportunity to vastly increase their wealth, and also to help in the process of eliminating poverty.

Both developed and developing countries can then draw great potential benefits from globalization. However, it must be recognized that the possibility of exploitation and abuse of human rights remain. Regulations and safeguards should therefore be in place in order to limit the potential of such problems.

III. THE IMPACT OF GLOBALIZATION ON THE ECONOMIES OF DEVELOPING COUNTRIES

A major obstacle to taking advantage of the benefits of globalization is the lack of access to sufficient information. This is particularly a risk factor for developing countries without the means to gain access to information via the Internet and other media. According to Pari Baumann (2002: 4), the rural poor face new risks because of this. Particularly, this sector of society have experienced risks from ecological and seasonal variations that they could generally anticipate to some extent. To mitigate these risks, rural poor communities have developed a complex integration of livelihood strategies.

The problem is however that globalization is increasingly affecting the environments of these people in ways that they can no longer anticipate, because they do not have the information to do so. This increases their risk of poverty and environmentally unsustainable livelihoods, as factors that they do not understand and have no knowledge of are now added to the equation. Hence these communities have no control and therefore no strategizing options to mitigate the new risks.

Baumann notes that several factors are now affecting the ability of the rural poor to mitigate their risks. These include international trade agreements on markets and natural resources. Such agreements affect the availability of products and services to the rural poor. In addition, factors such as biotechnology and natural resource extraction have rapidly increased environmental risks and social upheaval in ways that the rural poor have no way to anticipate. Structural economic reform and environmental resource management also influence and shape the lives of these communities in ways that they cannot control. It is on this basis that opponents to globalization have demonized the phenomenon for its potentially harmful and abusive effects, particularly upon the poor and upon developing countries.

Baumann also makes note of an interesting attempt to include local communities in the global effort to mitigate environmental risks. This effort is based upon the general trend of redistributing power to local communities in the form of funds and responsibilities. This means that natural resource management arrangements are being redirected towards communities, who are expected to build upon traditional practices and knowledge in order to provide a sustainable livelihood for each community. Significantly, the effect of this is an increased sense of uncertainty among the rural poor. New structures and power relations in order to effect what Baumann refers to as the "devolution" of resource management are being introduced in addition to the ones that already exist. Mostly, these new structures are unknown to the communities involved, which increases uncertainty regarding the status of their own power relationship and management arrangements.

This uncertainty is easily perceived as an abusive attempt at imposing an unknown power structure and management arrangement upon local communities. Hence it is important to ensure that these communities have communication structures in place and that arrangements are communicated effectively. In-depth knowledge and concomitant reasons for new developments will mitigate much of the uncertainty experienced within these communities.

V. DEVELOPING COUNTRIES VS. INDUSTRIALIZED NATIONS

Developing countries can learn much from Egypt and India's strategies to maintain both their local integrity and viably enter the global arena. Egypt has for example worked specifically to find a balance between maximizing the advantages the country can draw from globalization and minimizing the concomitant disadvantages.

In terms of globalization, the country therefore works to promote its relationship with the outside world while at the same time maintaining its national security in terms of not only politics, but also of social and cultural aspects within the country. While maintaining this, Egypt's vision for globalization also includes modernizing its culture to more clearly adhere to the requirements of the global arena (Egypt State Information Service 2003).

Rather than therefore demonizing globalization as a phenomenon, it would serve developing nations better to attempt to find a balance between their own social and political integrity, and accepting the economic realities of globalization. Egypt's vision for example views globalization as an "age of wonders," and accepts it as such in order to further its own economic purposes.

In order to accomplish their current position, both Egypt and India have accepted the communication necessities of the globalized world. Significantly, this was possible by means of knowledge and education. As noted above, the main problem relating to globalization and the controversy surrounding it is the fact that those trapped in poverty have no means of accessing the necessary information to take advantage of globalization.

Poverty is a global phenomenon, even in powerful nations such as the United States.

This is even more so in developing nations. It is therefore important to understand that globalization can serve as a vehicle towards the empowerment of these sectors of society. As mentioned above, developing nations such as Egypt and India have recognized that globalization is not a phenomenon that will diminish. With the current manifestations of information and communication technology, both developing and developed nations would do best to empower their poor communities to handle the demands of globalization.

The problem of poverty and lack of access to information can also manifest itself on a countrywide scale, particularly in the case of poverty-stricken third-world countries. In such cases, developing countries that have empowered themselves, such as Egypt and India, can play an educating and empowering role. Although the associated problems are neither simple nor easy to resolve, an attitude that is open to development an collaboration would facilitate the process considerably.

In this, both developing and developed countries face considerable challenges, which do not relate only to barriers to information flow. Other issues, such as social and political restrictions, may play a role in the lack of information and barriers to global entry. Some leaders may for example display the attitude mentioned earlier, focusing upon the individual autonomy of countries, and that globalization would detract from such autonomy. This is however not a solution to handling the globalization issue. Developing countries need to understand that globalization can serve an important role in the reduction of poverty without necessarily detracting from cultural autonomy.

Egypt and India have however proven that developing countries can enter the global arena successfully. Barriers such as those noted above can be overcome with the correct attitude and if an educational role is assumed by trusted partners. Egypt's role in the Arab countries can serve as an example. Developing countries such as Egypt and India have cultures that are similar to countries where poverty and a lack of information flow still prevails. This lack of information creates the problem of mistrust. In addition to influential leaders who distance themselves from globalization, a sense of basic mistrust of the unknown may prevail among developing and poor nations. In addition, the perception can be that developed nations are exploitative and operate from a paradigm of greed. These perceptions will need to change if globalization is to become a beneficial reality for all nations.

The solution is neither simple nor easy, but it is possible. It lies within the attitude of both developing and developed nations, in first empowering their own impoverished communities, and widening the perspective to also provide empowerment for larger developed nations.

VI. THE CHANGING CONCEPT OF GLOBALIZATION

Clearly, globalization is no longer the concept it was in ancient times. On a concrete level, the most obvious reason for this is the fact that the world is much larger than it was in ancient times. There are many more nations, with many widely differing cultures. Globalization means that all these cultures and nations are interacting in order to gain economic advantage, as well as to collaborate for other purposes, such as social integration and effective communication in terms of world politics.

In ancient times, globalization manifested itself on a smaller scale, and with the main purpose of trading goods that were not readily available within the local environment. In ancient times, communication also occurred on a much smaller and slower scale than is currently the case.

Today, technology has made globalization possible on a truly global scale. Nations have developed and changed over the centuries to dominantly operate within a capitalist environment. Empowerment and the reduction of poverty should then be planned in terms of these new concepts. Basically, all the challenges currently faced by nations who are adverse towards globalization revolve around issues of communication and misunderstanding. All nations, businesses and individuals should have full access to the information necessary to empower participation within the global arena.

With the development of technology and new economic concepts, particularly also in terms of the exchange rate, globalization has become a much more complicated and integrated issue than the case was in ancient times. This does not however mean that all nations do not have the potential to benefit form global trading and interaction.

VII. MAKING GLOBALIZATION A REALITY FOR ALL

A large-scale change in attitude is needed if globalization is to truly become a reality for all nations. Firstly, there needs to be a change in attitude among rich and powerful nations, as well as in powerful developing nations such as Egypt and India. The latter are already displaying an open and collaborative attitude in terms of powerful allies among both developed and developing countries. This is an important example, and also an important first step.

As mentioned above, a further step is providing empowerment to the poor sectors within rich and powerful countries. All individuals and businesses should have access to communication technology, as well as the opportunity to participate powerfully in globalization. The poor sectors of society should be educated thoroughly regarding the policies and changes that affect their lives and their livelihood. A relationship of trust and equality should be built within these nations, on an "intra-national" scale, as it were.

From this basis, an international sense of trust can then be built among nations in close proximity either in terms of geographical location or in terms of cultural similarity. The Arab nations with whom Egypt is collaborating can for example serve both an educational and empowering purpose for poverty-stricken nations in their vicinity. The same is true for powerful nations with different cultures such as India, China, and powerful African nations.

Furthermore, official globalization entities such as the WTO and COMESA can serve an instrumental role in empowering impoverished nations and communities. On the official level, rules and regulations can be implemented not only to discourage corruption within the global arena, but also to encourage an attitude of open collaboration, education, and national autonomy even within the process of globalization.

In today's world, it is vital to provide power to all nations and individuals to make the most of their potential at all levels of life. Globalization is simply one of the means by which this can occur. In summary, the remedy for the poverty and development issues on a worldwide scale begins within powerful nations themselves. These nations should firstly provide their poor communities with access to information, which can then empower them to participate in the global arena. The communication paradigm can then be widened to also empower developing nations.

For this to occur, both powerful nations and official globalization entities should collaborate for the benefit of all. Indeed, a specific official entity that is concerned with helping developing nations to collaborate on the global scale can be created in order to serve this empowering function. Today, globalization means the open collaboration of all nations for the benefit of all. It is no longer either acceptable or ethical to accept exploitative practices such as the widely publicized workforce exploitations by large companies. Instead, it is expected that the power to create wealth should be accessible to all on an equal scale.

VIII. CONCLUSION

Globalization is an undeniable reality. As citizens of the global community, it is time to begin realizing this, with both the developing and developed world working together to create a balance among the various inconsistencies seen in the world today. There is for example a growing gap between the rich and the poor, the obese and the emaciated, as well as the developing world and the developed world.

The first step towards creating sustainable wealth for all the world's citizens is to ensure adequate access to information. A sense of mistrust is created when information is not shared on an equal scale. Globalization is a controversial issue precisely because of this lack of information. Poor communities who have traditionally relied on the environment to sustain them are now victims of forces that extend beyond their world, but that nonetheless influence their environment and their livelihood. These communities need to be educated to and empowered to use these forces to their advantage.

Developing nations such as India and Egypt, who have made a success of entering the global arena, can act as mentors and educators to empower countries that do not have the means or the knowledge to do this themselves.

The examples of India and Egypt are encouraging in terms of creating a truly "Global Village," in which all nations work together for the good of all. The policies and regulations within these countries have ensured the sustainability of their globalization efforts, as well as in terms of their individual cultures. These countries serve as examples of the fact that globalization does not necessarily mean the homogeneity of nations. The beauty of culture can still be celebrated while taking optimal advantage of globalization. Globalization cannot be ignored, and those who do so are disadvantaging only themselves and their country.

Sources

Baumann, Pari. 2002. Improving access to natural resources for the rural poor. Food and Agriculture Organization of the United Nations. July. ftp://ftp.fao.org/docrep/fao/006/ad683e/ad683e00.pdf

Egypt State Information Service. 2008. Address of President Mohammed Hosni Mubarak before Egyptian-Indian businessmen forum. Nov. 16-19. http://www.sis.gov.eg/VR/egyptindia/english/add01.htm

Egypt State Information Service. 2003. Egypt and Globalization Horizons. Egypt Magazine, Summer. http://www.sis.gov.eg/En/Pub/magazin/summer2003/110227000000000001.htm

Gills, Barry K. & Thompson, William R. 2006. Globalization and global history. New York: Routledge.

Moore, Karl & Lewis, David. 2009. The Origins of Globalization: A Canadian Perspective. Ivey Business Journal, May/June. http://www.iveybusinessjournal.com/article.asp?intArticle_ID=832