It is frequently said that the world has been made smaller by the blessings of ICT, and we are all beneficiaries of globalization.
Usually, globalization means the borderless market and ICT, which has emerged as the premier facilitators of it. Yet, it is not obvious what the proper definition of globalization is, as different schools of thought define it in different ways.
On the one hand, Western countries see globalization as control-free industrialization, privatization of government sectors, and the liberalization of world trade. On the other side, welfare economists see globalization as a tool of exploiting Third World countries by the First World countries.
The concept of globalization was popularized by he US after the fall of the Soviet Union at the end of 20th century. Capitalists grasped this opportunity, and launched the concept of the borderless market. Due to lots of controversies of surrounding globalization, it is now time to re-evaluate the results of globalization, particularly for Third World countries.
Because of globalization, factors of production have been mobile, and that is why a country like Bangladesh has had the privilege of sending nearly one million workers to different parts of the world. They are sending remittance back home, which is boosting the economy tremendously.
Trade is now easier, as we can export our goods easily to the foreign markets. Besides, the domestic tourism sector has been upheld by the blessings of globalization. Due to competitiveness in the market, we can buy desired products at the lowest costs. Sources of entertainment have been widened, and we can get easy access to a world of movies, music, and so on.
As every coin has two sides, globalization has had its share of controversy. It is claimed from the experts, that due to globalization, domestic firms of Bangladesh are losing competitiveness, and most of the time cannot cope with the race.
Foreign brands and multi-national companies are dominating the domestic markets here. Being in the supply side, we are providing the factors of production like land and labour, and getting minimum returns from them.
Foreign companies are helping raise our average income, but that is not enough for the economy. In this case, the Nobel Laureate Joseph Stiglitz’s famous book Globalization and its Discontents can give us some insight. In this book, he shows how Western countries are using global economic institutions like IMF and World Bank to serve their own interests only.
One of main objects of World Trade Organization was to mobilize trade among the nations by removing tariff barriers, reducing subsidies, and abandoning reservation policies. Western countries, particularly, are enjoying the benefits of the WTO.
It is claimed that we are discouraged to subsidize the agricultural sector, whereas the US and many other developed countries are subsiding their own sectors continuously. Thus, only a particular group is feeling the pinch of the rules and regulations of this trade organization.
In 1995, there was a treaty on merit rights in Uruguay, which conveyed the message to reserve the rights of innovation and intelligence. It seemed transparent, but in the long run, it brought negative consequences for the least developed countries.
Due to intellectual property rights, the US and its allies are dominating other countries by restraining their raw materials in drug production. In 2001, when there was an epidemic in Africa due to AIDS, people from the region could not buy medicine because of higher prices.
On the other hand, two global organizations, the IMF and World Bank, have been questioned frequently for their inefficiency in the case of poverty reduction in least developed countries. These two organizations provide loans in tight conditions, such as reducing government expenditure in education and health sectors.
Now, it is not possible to completely cease the activities of the IMF, WB, and WTO, but reforms can bring better results from them. We would like to end by hoping for the best reforms in these global institutions, to bring about the best results.
As singer Jimmy Dean said: “I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.”
Naim Ebna Rahman and Kaniz Fatima are youth activists.