GUP-AY, HEMSLEY B.

3:00-4:30 TTh
BA POLIT SC 4 March 09, 2017
GLOBALIZATION: A THREAT TO THE MASSES AND LEAST DEVELOPED COUNTRIES
CHOSEN READING: “Monopoly Capital and the New Globalization” (Foster)
I.) STATEMENT OF FACTS FROM THE READING
In the reading, it has been posited that capitalism has become virtually synonymous with globalization. Capitalism has become
synonymous to globalization in a sense that capitalism and globalization adheres to the concept of free trade and self-regulating market.
As far as International Political Economy is concern, globalization and capitalism are complementary with each other in a sense that they
need each other in order to spread their objective which is focused on free trade and self-regulating market. To wit, capitalism is seen in
a national or domestic level which is reflected by a policy of free-enterprise or free-market system that permits people to possess private
property, with minimal interference from the government. While globalization in the other hand, is essentially capitalism on a global level,
rather than a national or domestic level. Therefore, in a globalized economy; economic activity is unrestricted by national boundaries.
In the reading, it was also stated that capitalism and globalization eliminates all need for a sovereign power in the economic
realm because it is the invisible hand which is the market forces to control and dictate the market outcome. In addition based on the
reading, monopoly capitalism is the main reason why competition in a capitalist state is seen as a competition of few large corporations
who dominated the market. The concept of monopoly capitalism (which refers to the stage of capitalism dominated by large corporations)
is different to the idea of classical political economists which states that those who are in competitions are not the few large corporations
but rather it is the small and mainly family-run firms.

II.) ISSUE: “IS GLOBALIZATION A THREAT TO THE MASSES AND LEAST DEVELOPED COUNTRIES?”
In this paper, I am going to prove that globalization is a threat to both masses and least developed countries by discussing
how globalization acts as a threat to the masses and as well as to the least developed countries. The issue arises from the reading
especially on the negative effects that had been brought about by globalization in the least developed states and that is the abuses Multi-
National Corporations of rich or developed countries which is manifested by monopoly capitalism which is only few large corporations
dominates the market thus abuses can be made by these large firms since they have the complete control on the market.

III.) DISCUSSION
a.) Globalization as a Threat to the Masses
Globalization becomes a threat to the masses in a sense that it increases unemployment. We all know that globalization is driven
by reliance to technology thus it encourages the use of technology. As far as the market is concern, the reason why globalization
emphasizes on technology is in order to have a high production of finished products in a lesser amount of time. Because of the reliance
to technology, Multi-National Corporations employ machines to reduce the number of employees in order to have a higher amount of
output or finished products in a lesser amount of time. Therefore this has led to huge unemployment. Without job, the masses will not
able to support their daily expenses.
Another factor on how globalization becomes a threat to the masses is that globalization promotes unequal distribution of
wealth. Globalization widens the gap between the rich and the poor because of trade liberalization. Trade liberalization allows the rich to
become richer in a sense that they have the means to do business within or outside their country. Globalization brings benefits to the rich
who are small in number and keeps the vast majority of people in poverty and misery. To conclude, because of the wide gap between the
rich and the poor, the rich can do everything they want to maintain their wealth by exploiting the masses.
b.) Globalization as a Threat to the Least Developed Countries
Globalization becomes a threat to the least developed countries in a sense that Multi-national Corporations who are based in
developed countries purchase the raw materials at lower prices from least developed countries. These Multi-national Corporations then
process the raw materials in their own countries and sell the manufactured goods in high prices in the least developed countries.
Globalization on this aspect becomes a threat to the least developed countries in way that it limits them to go beyond exporting raw
materials. Globalization as reflected in the least developed countries does not promote development but rather backwardness since the
least developed countries rely to finished products of other developed countries instead of them producing the said finished products.
Another factor on how globalization becomes a threat to the least developed countries is that it competes to the local industries
of these least developed countries. Because globalization promotes trade liberalization, local industries face much greater competition
from the other countries. This can put smaller industries at a disadvantage as they do not have resources to compete at global scale.
Because of the inability of this local industries to compete with outside industries, they faced bankruptcy. To conclude, because of
globalization which promotes trade liberalization, local industries of the least developed countries were subjected to severe repressive
conditions when there was growth of smuggling and massive importation of consumer goods.
To conclude, globalization is a threat to the masses and to the least developed countries as was seen in the discussion above.
Globalization is seen as a threat because it is as a tool or machinery of the developed or rich countries in their struggle for economic and
political power in the international system. Because of globalization, these developed or rich countries were able to exploit the least
developed countries for their own selfish interest by means of gaining advantage from the least developed countries since they are weak.
Because of globalization, masses around the world were affected because of exclusive economic growth in which the rich becomes richer
and the poor becomes poorer and because of exclusive economic growth, the rich were able to exploit the masses for their own interest.