ABSTRACT
Globalization is a
world-wide movement from local to a universal socio-economic system aimed at
unifying the world market into a global village accessible to all, which no
nation cannot stop but can only study its features and effects and key into
enjoying the dividends of globalization. Theoretically, this paper X-rays the contributions
of the Third World Countries (TWCs) to the process of globalizationwith a
thrust overview of its features, positive and negative effects to these countries
economy with the hope of proffering ways for sustainable development in the
face of globalization. The paper concludes that TWCshas not benefited enough
from the globalization owing to the undue position it stand in the global
economy as the producer of raw materials, low manufacturing exports and the
underdevelopment of the domestic financial markets. Globalization is a tool for
development and knowledge but knowledge is power and knowledge is dynamic. For
TWCsto command power in the global arena they must keep abreast with changes in
knowledge. The main problem is that without the necessary facilities and
knowledge, globalization will be a mirage in the TWCs economy.
INTRODUCTION
As
globalization engulfs all corners of the world and third world countries in
particular, what are the claims of the exponents of globalization towards the
economic development of thesecountries? Has globalization as an international
economic force really improved the economy of TWCs?In this regard some of the
principal challenges of TWCs development in globalizing world are related to
the development of global village as facilitated by international communication
structures and processes, unification of global economy through global market
and institutions within the international financial system; continuing
subordination of TWCs in international political economic relation, arising
from unequal exchange and development, high rate of urbanization in TWCsand social
particularism arising from class, ethnicity, gender, racism and religious
segregation.
CONCEPTUAL
CLARIFICATION
Conceptually,
globalization could be seen as internationalization, which means the intensification
of cross – border links between nations, liberalization (a process by which government
imposed restrictions and barriers are removed to create an open international economy).
Adejo (2003) defines globalization as “the integration of economies worldwide
through trade, finance flows and widespread adoption of information technologies
and internetworking. Globalisation is an increasing interconnected and inter
dependent world in international trade management, administration, communication,
investment and finance (Wolfensohn 2001).It can also be refers to a number of
elements as the broadening and depending linkages of national economies into a
worldwide market for goods and services and especially, capital due to
developments in media technology and communication. Globalization brings with
it a growing tendency towards the universal homogenization of ideas, cultures, values
and even lifestyles. Globalization connotes the liking of the world to become a
single entity through the development of strategies/systems to turn the whole
world into one global village. It indicates the modernization of the world
through trade, banking, communication and transport etc. The North and South
see globalization as the process where by commercial enterprises increase their
activities across national boundaries, utilizing the opportunities for the
international trade and simultaneously spreading their cultural and societal
values.
THEORETICAL
FRAMEWORK
The
dependency theory seems to provide the best framework for this study.
Thistheory best illustrates the exploitative natures of the developed countries
to the less developed country (LDC) which led to dependency. In this study,
some scholars in Latin America and Africa have their views concerning this
theory. They include: Dos Santos, Andre Gunder etc. According to Dos Santos
(1979) “Dependency relates to a situation which the economy of certain
countries is conditioned by the development and expansion of the other to which
the former is subjected.
There
basic assumption is that there is a dialectical relationship between
development and underdevelopment, in other words according to Andre Frank
(1975) “Development and under development are two different sides of a
universal historical process.” To him what causes under development in third
world is as a result of what brought about development in Europe and America.
When looking at this theoretical framework we talk about the centre of the
centre which refers to develop countries of the world, while the periphery
refers to the developing countries of Africa, Asia and the Latin America. This
relationship where the developed countries dictate the terms of their
co-existence economically, socially and politically, lead to uneven balance in
the global system. The peripheries are primarily producers of cash crop (raw
materials) which are cheaply sold to feed the industries of the centre. While
the centre are producers of industrial goods, sold at high price to the
periphery.
HISTORICAL DEVELOPMENT
OF GLOBALIZATION
The
globalisation phenomenon is said to have a history dated to the 15th century
and in particular, from the 17th century. Between 1642 and 1914, there was a
break up of empires in Europe, which gave birth to the emergence of nation
states with separate sovereignties. The relationships between these states were
unsatisfactory and led to the two world wars. The end of the second war saw the
emergence of two superpowers, the United State of America and the Soviet Union
with each of the powers creating spheres of influence with their capitalist and
communist ideologies respectively. The cold war that existed between these
superpowers divided nation states, groups and individuals into capitalist and
communists. Nation states particularly in Africa exploited the cold war situation
by playing off the United States and the Soviet Union against one another. The cold
war continued until the early 1990s when the Soviet collapsed leading to the
revision of communist economic ideology. Thus it was the collapsed of the
Soviet Union that p rovides background for the New World Order and the current
globalisation agenda.
New
World Order and indeed globalisation as it has been observed earlier is not
only economic and political, but socio-cultural in the sense that the pursuit
of its goals is a comprehensive endeavour. The manifestation of the present
globalisation agenda started with the Gulf War of 1991as there was no Soviet
union to counter the spread of western values and beliefs as spearheaded by the
United States of America. Other countries that joined the United States of
America to form the industrial capitalist race include Russia, Japan, Belgium,
Italy, France and Germany. For the third world countries, Adejoh (2003) has
charged that western capitalist penetration was not designed to benefit the
third World countries but to disrupt the indigenous order and to guarantee
external Prim-mover to take charge of the entire society, although the action
began with a popular slogan ‘‘developing the underdeveloped countries’’.
CONTRIBUTIONS OF THE
THIRD WORLD COUNTRIES (TWCs) TO THE PROCESS OF GLOBALIZATION
Benefit of
Globalization to TWCs Economy
The
third world countries or developing nations have suffer cost and also benefit from
the wind of globalization both in cultural, economic, and political
integration. Globalisation increased specialisation and efficiency, better
quality products at reduced price, economies of scale in production, competitiveness
and increased output, technological improvement and increased managerial capabilities.
Trade and investment can aid efforts at restructuring an economy to make it
more competitive and better able to contribute to the globalisation process.
Communication and mass media have the traditional function of multiplying
mobility and facilitating exchange of information about goods and services.
Exhibition, trade fair and media advertising, for example, help in the marketing
of goods and services and provide a multiplicity of choices to consumers even
if they also trigger unhealthy commercialization.
According
to Noah Samara, founder of world space-Africa satellite broadcasting system, “If
you look behind wealth of nations, you find information and if you look behind
poverty of nations, you find lack of information’’. For sustainable development
civil society and intellectual production information is truly the need for
every need. Integrating global economic and communication systems are shrinking
space and time and making the global village a global shopping mall. Apart from
general improvements in global communication through radio and satellite
television, innovative telephone through satellite and cell phones, access to
the internet in many cases, is enhancing what is generally referred to as
e-commerce or e-trade. The world has become a true market place of commodities
and ideas. The modern banking system through electronic banking (e-banking) and
automated teller machines facilitates fast and easy movement of cash (24/7) and
even cashless operations.
The development of communication gadgets
for instance, cell phones, and notes pad etc.had made communication easier and
effective over long distances within a short period of time. Swiftly e-mail,
text messages, and other social networks have replaced posting of letters which
has reduced travelling and its attendant costs and risks. Manpower training
anddevelopment can be more easily done by a variety of information technology
tools using live or video trainers, from any place in the world. Globalization
calls for innovative,dynamic and committed management.
Cost of Globalization
to TWCs Economy
Globalization
has imperialistic tendencies where by the developing countries at the mercy of
super powers in terms of military and economic manipulations. Thisimplies that
the Western world developed the concept of globalization to tie the aprons of the
developing countries to themselves. This is true as the globalisation discredit
indigenous cultures, values, knowledge and experience. It undermines national
economic and political independence and creates worse international
disparities. A major barrier to the progress of the poorer developing countries
remain the trade regime in advanced economies which generally discriminate
against the goods that countries of the south produce such as food, textile and
clothing. Africa underdevelopment and century impoverishment is the direct
precipitate of European colonization, global capitalist exploitation and
ruthless extraction of resources especially in the name of debt servicing by
international finance institution of IMF and World Bank.
The
policies of deregulation, privatization and commercialization, which have been
packaged by the International Monetary Fund, the World Bank and the World Trade
Organization, do not take into account the socioeconomic peculiarities of TWCs,
and therefore cannot lead to industrialization. The process of privatization,
for example, was marred by corruption, insincerity and politicking by the
political class. Foreign participation cannot lead to industrialization. Rodney
(1972) suggested that all forms of development must start within a country and
not from outside Globalization does not seem to be giving us much even in terms
of technological transfer, industrialization and economic development in
general. The mass importation of electronic communication and military gadgets
without commensurate exportation of goods as compensation has left unfavourable
balance in terms of trade and deficit balance ofpayment making TWCs debtor
nations (Dumping of goods as part of economic liberalization).
CONCLUSION/RECOMMENDATIONS
In
conclusion, this work has been able to examine the concept as well as impact of
globalization on the International relations of third world countries. It is
revealing to note the impact of globalization is not one sided. It has both
positive and negative impact on third world countries. It is true that the
choice to make it in this twenty first era of globalization lies principally on
how the third world wants to accept the challenges of globalization, as well as
make choices. It is time to reflect more now on how these choices could either
develop or under develop the third world.
REFERENCE
Andre Gunder Frank, and Dale
Johnson, eds (1972). Dependence and Underdevelopment. Garden City, New York: Anchor Books
Dos Santos, Theotonio,
(1971). The Structure of dependence. Pp 225-236 in K. T Kan and
Donald Hodges (ed) Readings in the
U.S imperialism. Boston: Extending Horizon
Naburere,
E (ed.) (2000) “Globalization, The Post Colonial African State. Harare, AAPS Books.
Philips,
E. S (1985) “Political Economy” New York Norton and Company Inc.
Toyo,
E (2000) “Background to Globalisation”. Ibadan, ASUU.
Uroh,
C (ed.) (1998) “Africa and the challenges of Development”. Essays by Samir
Amin. Ibadan: Hope
publications.
Wallestine,
E (1990) “The Capitalist World Economy”. Cambridge University Press.
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