GLOBALIZATION

Globalization

Globalization

Introduction

The term "globalization" has acquired a strong emotional charge. Some believe that globalization is a beneficial process - a key to future economic development in the world - while inevitable and irreversible. Others regard it with hostility, even fear, because they believe it raises greater inequality within countries and between countries, threatens employment and living conditions and hinders social progress (Hickman & Olney, 2011). This paper discusses generally some aspects of globalization and seeks to identify how countries can take advantage of this process, evaluating the same time from a realistically the opportunities and risks it poses.

Discussion

Globalization offers extensive opportunities for truly worldwide development but it is not progressing evenly. Some countries are integrating into the global economy more quickly than others. In countries that have successfully integrated the fastest economic growth and reduced poverty (Eijaz & Ahmad, 2011). As a result of policies of openness, most of the countries of East Asia, who were among the poorest in the world 40 years ago, have become dynamic and prosperous countries. Also, as improved living conditions it was possible to advance the democratic process and, in economic terms, to achieve progress on issues such as environment and working conditions. In the seventies and eighties, many countries in Latin America and Africa, unlike Asia, pursued policies geared towards the domestic sector and the economy stagnated or declined, poverty increased and high inflation became the norm. In many cases, particularly in Africa, the problems were compounded by adverse external factors (Pourhassan, 2011). However, policy changes in these regions, income began to increase. There is now a major transformation. Encouraging this transformation - and not turn back - is the best way to foster economic growth, development and combating poverty.

The crises in emerging markets in the nineties have clearly shown that the opportunities offered by globalization are counterbalanced by the risk of volatile capital flows and the risk of deterioration of the social, economic and environmental as consequence of poverty (Nayak, 2011). For all stakeholders - in developing countries and advanced countries and, of course, for investors - this is not a reason to turn back but to support reforms that strengthen the economies and the global financial system so to achieve faster growth and ensure poverty reduction.

Globalization involves increasing integration of world trade and financial markets. But to what extent developing countries involved in this integration? The efforts of these ...