Theodore (1983) is usually credited with globalization's first use in an economic context.
The term globalisation has come become popular since the 1980s. Technological advances have made it easier and quicker to complete international transactions both trade of goods and financial flows. In other words globalisation refers to an extension beyond national borders of the same market forces that have operated for centuries at all levels of human economic activity-village markets, urban industries, or financial centers. There by turning the world into a global village. However, the opportunities provided by globalisation in real sense in not the same for all the countries and hence it has created an economic imbalance. This has resulted in the emergence of groups protesting against globalisation. This paper examines if globalisation has really been a curse for poor countries and a blessing for rich countries.
As we examine the recent history it can be found that though globalisation offers wide-ranging opportunities for worldwide development, but it is not systematic in providing it in an evenly manner. It should be noted that some countries are becoming integrated into the global economy or the trends of globalisation more quickly than others. These countries which have been able to integrate are seeing faster growth and reduced poverty.
In fact it can be said that the outward-oriented policies resulted in dynamism and greater success to much of East Asia, changing its status from poor countries to rich and prosperous countries. As the standard of living rose in these regions, it was possible to make advancement on democracy and economic issues. It should be noted that the opportunities of globalization comes with risks. For instance, the risks arising from volatile capital movements, the risks of social, economic, and environmental degradation created by poverty, and many more (IMF Staff, 2000). However, the countries which has prospered using globalisation has also had the similar risks, the only difference is that they took this as an opportunity to fight poverty and the others who did not make it, took globalisation as a reason to balm for poverty.
The wave of globalization has been accompanied by policies changes that have opened economies domestically and internationally. During the past few decades, many governments adopted free-market economic systems, enormously increasing their own productive potential and creating numerous new opportunities for international trade and investment. In order to promote trade in goods, services and investments, many governmentshave established international agreements and changed their policies that dramatically reduced barriers to commerce. These countries in order to take full advantage of new opportunities in foreign markets have allowed the growth of multinational corporations, built foreign factories and established production and marketing arrangements with foreign partners. As a result these countries have benefited immensely.
After the MNCs and the foreign companies, the advancement in technology has been the next most important driver of globalization. Development and advances in information technology, in particular, have significantly transformed the economic status of different countries.