World Bank and the International Monetary Fund - Essay Example

The website oceanatlas.org (2006) described globalization as “Globalization", a term used abundantly since the beginning of the 1990s that has progressively developed since World War Two. It is recognized through several trends such as growing economic integration and liberalization; trade deregulation; convergence of macroeconomic policies; modification of the role and concept of the nation-state; proliferation of supranational agreements and regulatory bodies; and globalization of information systems 1.” Upon looking into the given premise, one might have the idea that the said practice has its positive and negative effects. In this case, if some countries oppose this kind of practice anticipate its negative effects. So, what are these negative effects that they seem to oppose this kind of practice?

Vandana Shiva (2006) 2, an Indian ecofeminist and scholar, once stated that “globalization along with the support of organizations such as the World Bank and the International Monetary Fund, has created a term more often known as “slave wages”. These kinds of wages are not necessarily the result of “unjust” societies, but of the fact that global trade devalues the worth of people’s lives and work. While globalization has brought jobs to rural, developing areas such as India where there was previously no employment, these jobs seem to be wolves in sheep’s clothing. The work available to women is almost always poorly paid, mentally and physically unhealthy, demeaning, or insecure.”

This premise means that globalization would only benefit those people/countries who are the mass producers while depriving the people who have the same kind of products in the country where the product is delivered in the sense that since mass production has been made, it is much cheaper than locally produced products. There are a lot of countries that are attesting to this kind of malady and these kinds are noted since the conception of this kind of economic practice. The UNIFEM (2006) describes and pointed out negative effects such as “An increase in hidden unemployment, a lack of new job openings, and a deterioration of real wage rates are the consequences of globalization in most developing economies, which were unable to adapt the new technologies” and “Most trade liberalization benefits will be received by the manufacturing-producing countries, while the smallest share will be going to the agricultural-producing countries (developing countries). Read More