Will globalisation lead to the end of the third world - Essay Example

Will globalisation lead to the end of the third world? affiliation Will globalisation lead to the end of the third world? Crush (1995) claims that globalisation is responsible for the evolution of many countries from being third world states to more advanced nations. Globalisation has been termed as the key to end poverty and gaining of financial stability in the countries all over the world. Globalisation can be simply termed as the increasing of relationships between culture, people and economic activities. Globalisation is characterised by more cheaper trading fees like exports and imports. In many instances globalisation is referred to as economic globalisation. Economic globalisation is the global distribution of produced goods and services. With globalisation, freedom to trade and to business has become a norm in the globe (Bhagwati, 2004). Countries are given the opportunity to trade with all other countries across the globe. It is further facilitated by the reduced fees of levies, taxes and import quotas. Prior to globalisation, the global economy was controlled by specific groups. In those days, the freedom to trade was not a norm. Business people had to pay heavy fees to governing bodies just to operate a small business. In the days of cold war, global trade was very expensive and biased. It is due to this that the global economy was growing at a very slow rate (Blomsrom & Hettne, 1984). The prices of exporting and importing products were high enough to hinder an ordinary merchant to conduct the business. This left militaries and governments as the only bodies with a comfortable run in the global market. It is during this period that many counties failed to grow economically and remained in bad economic positions up to today. However, with globalisation the economic trend of these third world countries is changing significantly. With economic and trading freedom, third world countries are striving to get an economic advantage in the global economy. Is this trend purely caused by globalisation? This paper will focus on the impacts that globalisation has brought to the third world countries. It will also look at the future of the third world countries under globalisation, and if globalisation will lead to the end of the third world. It was predicted that there would be a rapid development in Asia, Africa and Latin America. The growth would be enough to bridge the gap between the developing and developed states. According to Chew & Denemark (1996) the gap will be reduced until to the level that it would be insignificant and meaningless. This will provide a level ground of trading among all nations. These developments are said to be most beneficial to the poorest nations. In Africa, Asia and Latin America the desperation of success is growing each and every day among individuals. With the success trail made easier by globalisation, everyone in the developing nations see a future of success in them (De Beer & Swanapoel, 2000). This leads to innovation and entrepreneurship among them. If the trend of striving for success continues in the third world countries, third world countries will be no more. However, some critics argue that the development of third world countries in not due to globalisation but the need to get better lives. As much as the argument holds some truth, the developing global economy also has a crucial role in the success of developing countries. Globalisation has opened many opportunities for a global development. However, these opportunities are not evenly distributed because some states are being incorporated in the global economy more rapidly than the others (Burnell, 2008). This is mainly caused by the difference in governance of financial positions of the nations. With proper policies third countries have a probability of having the greater piece of the cake in the global economy. For instance, in the 1970s and 1980s Africa and Latin America implemented economic policies which focussed more on internal financial development. What followed was deteriorating economies in the continents. This showed that, policy governance is important in the success in the globalised economy (Brewer, 1989). With good policies which focused on the global market, Asia has developed from one of the poorest continents in the world to superior nations both politically and economically. It is due to globalisation that Asia was given the freedom to trade in the global market which was different after the World War II. At the moment, the global economy cannot operate minus the Asian companies. The developed countries need the Asian market and goods to survive financially. This is evidence that third world countries are becoming as more important as developed contrived in the global economy. With globalisation, many states mostly in Africa have become needy for economic and political stability. Chang (2003) argues that after colonisation political stability was the main missing ingredient in the success of third world countries. In today’s century political stability has become the least of concerns in Africa. Globalisation ha sensitized people on the need of a political cushion in the success of a nation. The same is experienced in Latin America and Asia where politics is incorporated in the economic success of states. In the era of colonisation, colonisers had both the political and economic stability in their hands. This is what created the gap between the colonies and the colonisers. In modern day century, they are referred to as the third world countries and the developed countries. It is the political stability that created political and economic super powers (Cho, 1995). Globalisation seeks and is changing this trend. With realisation of political stability, third world countries are shifting in building their economy. With financial giants experiencing crisis and third world states coming into the market, it will not be long for equality in the global economy is achieved. If this predictable happens, the third world nations would be no more. Third world countries are normally characterised with poor infrastructure, poor resources development and poor internet connections. These three factors are important to any aspiring investor. The difference in the three factors in the developed and developing countries is what makes the difference in the terms of investors and growing market. With the realisation of globalisation, investors seek to venture in third world countries due to the rapid economic growth. With Europe and the United States prone to crisis and economic risks investors are now turning to Asia and Africa. This is one of the factors that is responsible for the economic evolution in third world countries. With investors and a striving population third world countries are to impact the global economy in a big way. According to Feildhouse (1999), third world countries will be a crucial part of the global economy and they will need no aid to sustain their population. However, globalisation has not done enough to ensure a stable growth in the growth of the economy in the third world. In the modern day century, third world states especially in Africa are struggling with social economic issues. They include poverty, food security, vast growth in population and illiteracy. These issues hinder third world countries in reaching the level and achieving the goals achieved by the developed countries (Harris, 1990). A developed country cannot fail to provide education, food and shelter to its population. This makes it very difficult for developing countries to have a stable economy. Poverty levels are also increasing in the third world countries. This leads to the question whether the gap between developed and developing nation is widening or reducing. Considering the internal socio-economic crisis, it is a clear indication that most third world countries are far from realising economic independence and stability. Third world countries have grown and achieved a lot since they attained independence and conclusion of the world wars. The political and economic positions of these nations have increased and reached admirable heights. According to Bauer (1982) globalisation has been the main key to these developments. With globalisation achieving more efficient rules and regulations of operation, third world countries are to reach even higher heights in terms of political and economical positions. With Asia being the best example a success story in third world countries, its impact on the global market shows the success and achievement third world nations may offer to the global economy. However, the internal crisis in this nation may make it difficult for the third world nations to reach the standards of developed countries. But the future is bright since individuals are craving for success and redemption from poverty (Crush, 1995). This realisation may boost their economy to much greater lengths. With some nations already realised and attained the standards of the developed nations, third world nations are not giving up in the attaining of this dream. With rapid growth rates and the lessening gap between developing and developed nations, it would be correct and almost accurate to argue that globalisation will lead to the end of the third world. References Bauer, P., 1982. Equality, the third world and economic delusion. London: Routledge. Bhagwati, J., 2004. In defence of globalisation. Oxford: Oxford University Press. Blomsrom, A., & Hettne, B., 1984. Development theory in transition. London: Zed Books. Brewer, A., 1989. Marxist theories of imperialism. London: Routledge. Burnell, P., 2008. Politics in the developing world. Oxford: Oxford University Press. Chang, H., 2003. Rethinking development economics. London: Anthem Press. Chew, S., & Denemark, A., 1996. The underdevelopment of development. New York: Sage publications. Cho, G., 1995. Trade, Aid and Global Interdependence. London: Routledge. Crush, J. 1995. Power of development. London: Routledge. De Beer, F., & Swanapoel, H., 2000. Introduction to development studies. Oxford: Oxford University Press. Feildhouse, D., 1999. The west and the third world. Boston: Blackwell Publishing. Harris, N., 1990. The end of the third world. London: Penguin books. Read More