Globalization Developing Countries Essay

Globalization Developing Countries Essay

… expense of developing countries. The already meager share of the global income of the poorest people in the world has dropped from 2.3% to 1.4% in the last decade. Ideally, poorer countries should benefit from globalization because local companies can produce goods and sell them to other companies thus creating jobs and capital for the country. However, this is not necessarily the case. For example, …

… In the two regions with the most structural adjustment experience, per capita income has stagnated (Latin America) or plummeted (Africa). Structural adjustment has also contributed to rising income and wealth inequality in the developing world.” One aspect of these structural adjustment programs is the privatization of government owned agencies and enterprises. This sort of privatization sells these enterprises to investors, the majority of the time the assets …

… their local counterparts.. The new owners in turn, restructure the enterprise resulting in massive lay offs and/or pay cuts for local workers. Trade liberalization is another structural change that worries opponents of globalization as trade liberalization deals with the elimination of tariff protections for industries in developing countries. Many fear that such liberalization does nothing but to leave locals without jobs. For example, the IMF and …

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