Why Has Economic Globalization Exposed Developing Countries to More Risk

491 Words2 Pages
In today’s world, it seems no need to teach the developing countries’ people about how good the opening will be. Actually, the basic incentive for the developing countries to develop their economy and to reform their institutions is to join the global market and to be an equal partners in the global market. No opening, no catching up. Because no opening you have nothing to catch up. And if you do not participate in the globalization, you will be simply marginalized. Some economists have described globalization as a fast train, which developing countries need to "build a platform" to get on. This platform is about creating a foundation to make sure the country functions well. It includes property rights and rule of law, basic education and health, and reliable infrastructure (such as ports, roads, and customs administration). The real question in today’s world is why so many economies, especially developing countries economy have not benefited much from the globalization but rather suffered continuously the poverty, social instability, financial turmoil and economic crisis? Back to the history, most of former colonial territories, which enjoyed high (maybe highest) degree of freedom of commodity trade, capital inflows and technology transfers, did not prosper and still remain in the category of the most backward countries. Why such a good thing like globalization is always so highly praised by multinationals or governments of developed countries, but rather skeptically or hesitantly taken by the developing world? Fundamentally, there is an “unequal footing” problem in the globalization. The developing countries are constrained by their domestic problems in the international competition and they are more vulnerable to the risks of international market. It should be realized that a country needs more things to prosper, not only the flowing-in capital,

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