• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Is Globalization bad for the third world?

Extracts from this document...

Introduction

Introduction to International Relations Is Globalization bad for the third world? 04069458 Word Count: 1493 Globalization is defined as the increasing interdependence, integration and interaction between people and corporations in different locations around the globe. In political terms it can be defined as the spread of political sphere of interests to regions and countries outside the area of the political actors. (Wikipedia 2006) The term 'Third world' is a lot more vague, it comes from the cold war when the third world was taken to be the area outside either of the two opposing camps. Now, however, the meaning of the term has changed and has come to represent the Less Economically Developed Countries (LEDC's) of the world, but even this is not a fully accurate term. There is a huge difference between a Sub-Saharan state (for example Ethiopia) and a South East Asian state (for example Thailand) yet they would both be classed as LEDC's, therefore it is very hard to determine if globalization is good or bad for the third world in general. To form a fair critic of globalization it is important to look at the positive as well as the negative affects, and globalization has had many major benefits for the third world. ...read more.

Middle

(Przeworski 2000) In principle there are no major problems with situation, it is when something goes wrong however that the problems occur. One of the main reasons why globalization has not affected the third world in nearly such a positive way as many economic speculators predicted is due to the way that the IMF lends them money. When investing the IMF adds clauses that state that if the something goes wrong for the western investors they can bail out and are even sometimes given compensation money for the losses that occurred. Although on the surface this may sound positive as it encourages more investors to take on what more risky ventures in less economically stable third world countries it in-fact negative as it leads to speculation and means investors often pull out of a country at the first sign of weakness. (Przeworski 2000) This in terrible for the county that has been invested in because, as they have got rid of all protectionist measures and trade barriers there is nothing to stabilize the economy and so it collapses. The end result of this supposed 'help' then end up being a situation where the economy can never recover as the loan repayments to the IMF are to large and so living conditions remain very poor. ...read more.

Conclusion

(Miguel Lacabana 2003) Now some South American nations, notably Venezuela have moved towards a more socialist democracy and have stopped embracing American aid and investment, instead moving towards a more self-sufficient economic model. Although rising oil prices may caused it, this policy has really worked in Venezuela where standards of living have increased dramatically since the liberal president Hugo Chaves came into power in 1998. It is interesting to note that none of the large nations that are now promoting globalization became powerful through free trade and open markets. In-fact the US, Britain and the other European states became the economic powers they are today through policies of high tariffs, low imports and large exports, not the free trade model they are now promoting. Overall, I personally believe that globalization is inevitable, necessary, and has the potential to be really good for the third world, and increase prosperity globally. The way it is being delivered at the moment however leaves a lot to be desired. Until the powerful organization such as the WTO and the IMF totally reform the methods they use to try and help the third world, globalization is going to be more a hinderence than a blessing. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Marked by a teacher

    Is Increased globalization a good thing?

    5 star(s)

    Uganda and Vietnam are prime examples. Many have the attitude that globalisation directly means Westernisation, or even Americanisation. However, if we consider the world at the beginning of the last millennium, this is clearly not the case. The high technology in the world of 1000 A.D.

  2. The positive and negative effects of Globalization

    This does not necessarily lead to beneficial development of areas where these companies choose to 'set up'. The United Nations state the level of benefit that globalization brings depends upon the strength and effectiveness of the government and the stability of domestic institutions.

  1. Why has GDP growth been so slow in Somalia?

    to accommodate it. If two rural communities merge, or migrate to a more urban area, fewer schools and hospitals would need to be built. It could be argued that fixed costs spread over a larger number of people would lower the per capita costs of public services.

  2. Are recessions inevitable?

    As the banks raised their interest rates after the introductory period ended, the mortgages were too expensive to be paid back. This lowered homeowners' disposable incomes and caused many to default on their mortgage payments. * Credit Crunch i.e. shortage of finance.

  1. Given the fact that Third World countries are underdeveloped (or developing); the causes that ...

    their nations' recession.4 Being dependant on international corporations and institutions, such as multinational corporations (MNCs) and the International Monetary Fund ( IMF) ; and receiving profits from such structures; serves the interests of wealthy countries that have such international structures tied to them by " allegiance funding".5 Thus the elites

  2. Globalization describes the ongoing global trend toward the freer flow of trade and investment ...

    First, trade is truly free only if both partners are "free not to trade." Participants in "free trade" must have an "interdependent" relationship. Interdependence implies that people depend on each other "by choice," not by necessity. If one trading partner is dependent on another, the dependent partner may have no

  1. CRITICALLY EVALUATE THE THEORIES OF ABSOLUTE ADVANTAGE (ADAM SMITH MODEL) AND COMPARATIVE ADVANTAGE (DAVID ...

    countries will cause our country to lose its comparative advantage in everything. As will be shown, this is essentially impossible. To define absolute advantage, it is useful to define labour productivity first. To define comparative advantage it is useful to first define opportunity cost.

  2. Samuel Greg chose this site because

    The amount of money increased by growth of international trade. As well as this, In 1790 Greg started a lease under the Earl of Stamford concerning land in the village of Styal. The lease was very inexpensive; it cost 50 shillings and then 2.85 shillings a year to rent his land.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work