Globalization and Its Effects on World Economy (Essay)


Globalization is one of the most discussed issues in the modern world. This process had its roots in privatization of market, resources and labor in Europe and later the rest of world through colonial conquest and deals with local elites. Asia, Africa and Americas were drafted into the “globalization” project of capitalism hundreds of years ago. The current globalization is not a new phenomenon, born at the close of the 20th century. It is a process that began hundreds of years ago.In previous eras it was called imperialism, containment of communism, Westernization, modernization, etc.Dozen of horrific wars and democratic subversion of the last century were fought around the globe to keep local markets from the control of competing communist powers or local people. Even the so called “cold war” was in fact world war three.

Globalization and Its Effects on World Economy (Essay)

Globalization and Its Effects on World Economy (Essay)



Globalization is the process of making economy, culture, education and politics universal and standardized the world over. This Western order is carefully formulated and designed to be slipped into non -Western communities as the only suitable product to be consumed in the 21th century. The purpose behind the current rhetoric of “globalization” is to change and control the life styles, customs and cultures so that they may become the Western clones. It is expressed by the use of communication through commercialization of some terms such as ” World Society”,”:New World Order”,”Global Village” and so on.




The new world order domination the world today is represented wholly by the globalization process. The West based globalization has tremendous impact on all world societies, including third world countries. In fact there are some positive consequences resulting from the application of globalization, but they are merely material benefits, that can help”advance” third world countries in the long run. Foreign direct investment(FDI) projects have helped to reduce absolute poverty in some third world countries such as Turkey and Bangladesh. The expansion of trade and foreign investments has resulted in the acceleration of social mobility in strengthening of the middle class in third world countries. The new communication and information technologies have enabled educated people to access ideas and information sources, with low cost through easy ways.
On the other side, due to globalization process the maximum wealth of the world is now accumulated in a few hands. Less than one billion people now possess about 80% of the total wealth and 11% people control about 63% of the income of world.USA(4.6%population) is getting about 26% of the world income.



Globalization has popularized a consumer culture world wide. Several brands of T.shirts, jeans, fast food like KFC, McDonalds, Pizza Hut and so on.Which are associated with Western culture have caught the imaginations of the Eastern youth. Globalization is also guilty of propagating a superficial American pop culture, which titillates the senses but deadens the spirits.The new paradigm of international relations, as manifested by the relentless American moves to usurp the natural resources of the world is the part of globalization agenda. Multinational companies of USA and first world have captured the market and economy of third world countries. Local industry and agriculture of these countries is suffering badly. WTO, World bank and IMF have become the tool of industrialized nations to exploit third world countries.



As result of globalization, disease, crimes and drug trafficking are being internationalized. People of third world countries become used to these kinds of social problems ,hence, they stated modelling the heroes who are being shown everyday. West is also realizing that globalization does not benefit most people, even necessarily those in rich countries. So the public opinion against globalization is building up rapidly. Human rights activists are leading anti globalization movement in the whole world.



Economically speaking, globalization is a game. It will care only to add to resources of the West to expand the sway for multinational companies, while underdeveloped societies including third world countries, will continue facing new problems of poverty, scarcity and stress. US and G8 countries should correct this imbalance before it is too late, otherwise it will lead to increase in people’s suffering and fresh.



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Author: ADMIN

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