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Globalization and its impact on Third World Countries

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Globalization and impact on third world countries

Abstract

Globalization is the new buzz word that has

come to dominate the world at the later part of the last

century with the end of cold war period and the

disintegration of the former Soviet union and global

trends towards the rolling ball. The increase on the

markets economy and faith in private capital, structural

adjustment and influences of the World Bank and

International Organizations in many third world countries.

Globalization brought in new opportunities as well as

challenges to third world . With the analysis of the

concept, present research examine the history, types of

globalization and composition of third world. The

study focuses on the positive and negative impacts on third

world countries brought by globalization. To conduct the

research, researcher utilize the descriptive and analytical

method of research.
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Globalization and impact on third world countries

1. Introduction

Globalization is an irretrievable and overwhelming

phenomenon. It is very famous over the world. There are notable

changes and development taking place after 1989 and most scholar

termed 1990’s as a decade of globalization. Globalization is

transforming the world. Because of this fast change it has

attracted the attentions of intellectual all over the world.

Every serious scholar of social science has to think about it

and has to comment on it. So this topic has become hot issue of

the day. There are two different strands about globalization, of

them one held it constructive while others consider it as

destructive and one other group consider this process as

marginal. Globally it created opportunities as well as troubles

for different peoples .globalization due to this double edge

quality some people are scared of it others not.

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Globalization and impact on third world countries

Globalization has contributed a lot in the

development process of developing world but there are costs and

benefits accompanied it .so the focus of research in this paper

will be the consequences of globalization on third world

countries in social ,political economic sphere whether positive

or negative. The rise in foreign direct investment (FDI) was

observed, increase in cross border trade was witnessed due to

the technological progression. But the whole process is not even

and everyone enjoying its fruits. Cross border crimes, terrorist

acts, climate change, environmental degradation, spread of

diseases are the somehow or the other are the outcome of

globalization process .

Research statement

Globalization is a recent phenomenon. It has been

praised for being opportunity for the third world countries to

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Globalization and impact on third world countries

make in 21st century, it has also been criticized for anti-third

world posture.it fluctuates in time and space. The double edge

nature shows that people cultural and social space can be

analyzed only in their current economic, social and political

practice.so the focus of the research will remain on

globalization’s implication for third world in

social, political, strategic and economic directions in both

ways

whether positive or negative.

Objectives

 To specify the areas and issues in which third world

countries are being exploited by the developed world.

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Globalization and impact on third world countries

 To specify the prospects of globalization’s on third world

being a part of global village.

Questions

 The recent globalization is considered as a source of

problems because it promote cooperation as opposed to

competition in economic,political,social and strategic

arena and has created web of mutual interest.in this

situation, is third world beneficiary or looser?

 What are the areas affected by globalization?

Strength and Weakness

 The strength of this research work is that the

globalization now a day is the hot topic in the domain of

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Globalization and impact on third world countries

international politics and entire world is being affected

by its growth regardless positively or negatively. The

huge amount of material in the form of books, research

papers, articles features and web sites available.

 On the other hand the weakness of this study that it is

hard to measure the exact ratio of globalization’s impact

on the different dimension of the state affairs especially

in the case of third world countries.

Methodology

Qualitative descriptive, analytical method is used for the

research. The data is gathered from primary and secondary

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Globalization and impact on third world countries

sources i.e. books, articles, internet etc.

1. The Concept of Globalization

The word “Globalization” was first used in 1930, to

denotes the holistic view of human experience in education. And

then latter an American minister Taze Russell coined the term

‘corporate giants’ in 1897.The concept of globalization has

numerous definition and interpretation .Globalization is a

through the global network of trade, communication and

transportation integrated the regional societies, economies and

culture. Globalization is usually referred as economic

globalization that integrates the national economy into

international economy through the means of trade, capital flows,

migration, foreign investment and spread of technology. Simply

we can say that it is a combination of economic, socio-political

and cultural factors.

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Globalization and impact on third world countries

“Globalization is the process, which has profound

consequences for individual as well as their local experience

in everyday life” (Bilton et al) “All those processes through

which peoples of the world are incorporated into a single world

society” (Martin AL brow and Elizabeth)

Some scholars associate it to the geographical

borders make distinction between national, international and

global. The transaction which take place within one country it

is called national and those which takes place between different

countries are termed as international transactions. Global

combines the both international and multinational as a highest

level of integration between countries. Global activity does not

recognizes borders that is why country becomes irrelevant when

it becomes the part of global activity.

2. History of globalization
Recently ‘globalization’ has become popular

phenomenon but its presence can be felt at the of middle ages

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Globalization and impact on third world countries

in Europe. The 19th century was marked as first era of

globalization sees the rapid growth of international

trade between United States and Europe. After world war

II, Globalization got momentous due to major advances in

technology. Globalization is not a new phenomenon it existed

during the Roman, Parthian Empire and the Han Dynasty. The

Islamic Golden Age established the early global economy

across the old world resulting in a globalization of crops

, trade and knowledge.it continues later in the 16th and 17th

centuries and with the establishment duch East India company

as a first multinational corporation makes it a business

phenomenon.

3. Types/Various Dimensions of Globalization

Globalization involves many areas some of

which cover politics, economics, law and media. Globalization

and its impact at least be looked at least from five

different aspects.
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Globalization and impact on third world countries

i.Economic

ii.Education

iii.politic

Iv.On Poverty and migration

v.Enviornment

Before investigating the impacts of globalization

throughout the world especially in the third world countries

which is the focal point of this discussion; whether they are

positive or negative, we need to at first get acquainted to the

third world countries and their major problems.

4. What are the Third World Countries?

The “third World” and “developing nations”—as well

as their counterparts “First World” and “developed nations”— do

not appear on a map. Third World nations are situated in

Africa, Asia, and Latin America, the distinction between North’s

and south are primarily political and economic rather than

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Globalization and impact on third world countries

geographic. Industrialization, freedom of expression and

association, governments elected through democratic process,

protection of human rights, and low rates of population growth

are the prominent features of developed nations. On the

contrary, governments in the developing part of the world

governments are often toppled by military coups or led by the

dictators. Extremism and ethnic conflicts are the predominant

factors. Malnutrition, unemployment, high fertility and

mortality rate, lesser educational facilities, high population

growth rate, unpurified water, sexual practices without

safety precaution, and insufficient health facilities vastly

increase the incidence of serious health problems such as AIDS,

malaria, and tuberculosis. Third world countries did not have

any relationship with both the first world and second world

countries, In fact these were the countries ,which adopted

nonaligned policy towards the first as well as the second

World countries.
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Globalization and impact on third world countries

5. Composition of Third World Countries

The third world countries comprise of the whole

of Africa, Asia (apart from Soviet Union, China ,Japan ,and

Oceanic islands of: Australia and New-Zealand) Latin

America, consist of third world countries.

6. Characteristics of Third World Countries

1. The third world countries lack development in various areas

due to insufficient resources and in turn causes great

increase in diseases .Thus in a way ,advanced western

countries are capable of influencing and do influence

tremendous ,economic ,social and political pressures on

third world countries .

2. Problem of Population Growth. The Third world have

large population and less resources to feed .The population

creating number of problems for developing countries such

as running environment and pollution. The limited food

stocks are incapable to meet the needs of large population

and resulted in food shortage. The extra 2 billion or so

people expected on this planet in the coming 40 years will

be in the poor half of the world.

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Globalization and impact on third world countries

3. A United Nations organization Habitat reports at least 600

million urban dwellers and more than 1 billion rural dwellers in

Africa, Asia, and Latin America “live in housing so overcrowded

and of such poor quality. Consumption, not population, is the

main problem confronting human society today.

4. Poor infrastructure and lack of basic amenities are basic

problems which plague these countries. Lack of basic amenities

and poor sanitation further aggravates their problems. In

addition, the health of a country’s population depends crucially

on an infrastructure network supporting the essentials of life.

The problem is particularly severe in developing countries.

5. Many developing countries around the world lack even the

most basic necessities. The Infrastructure is required, not only

for the supply of basic needs, or for the economy, but also Make

possible for the poorest communities in the world to gain access

to a wide array of social services, healthcare and greater

possibilities for livelihood. Across the world more than 1

billion people lack access to roads, 1.2 billion do not have

safe drinking water and about 2.3 billion have no access to

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Globalization and impact on third world countries

energy, 2.4 billion lack sanitation facilities and 4 billion are

without modern communication services. In India, the treatment

of waterborne diseases resulting from the insufficient access to

water infrastructure is estimated to cost the government $15

billion-$20 billion.

6. Insufficient access to electricity can also prove

devastating to public health. The medicine of HIV/AIDS needs to

be refrigerated properly but due to the insufficient supply of

electricity in rural areas impedes the delivery of basic health

care services to the poor.

7. Poorly maintained or nonexistent roads also inhibit access

to health care and medicines in the developing world. In South

Asia, there is not proper infrastructure and transportation

system. Inadequate transportation infrastructure is also a major

factor behind road traffic deaths.

8. Impact of Globalization on Third World Countries

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Globalization and impact on third world countries

Lot of debate have been conducted by the both

policy makers and scholars about the impact of globalization on

third world. While it has been praised for being an opportunity

for the third world posture. Here we examine the negative and

positive impacts of globalization in details;

Negative impact
The Globalization generates fear of

marginalization. It is important in the light of the above to

clearly state that there is increasing fear of marginalization

within the third world.

8.1.1. Impact on Economy

Globalization, economically speaking, entails the

integration of world economy and flow of trade without barriers

and access to markets; but the that developing countries are not

really catching up with the pace of advanced economies, the

offshoot of globalization on the Third World Countries, still

far from what it was expected. In the arena of world trade, the

developing are largely involved in the export of raw material to

developed world and import manufactured goods from them which

are costly. The development assistance or aid from the developed

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Globalization and impact on third world countries

to the third world countries have dwindled significantly till

1980s. The large number of people from the developing world

migrated to the developed world in search of jobs which can

improve their living standards and many in the Third World would

blame the globalization for their poor home economic conditions.

Globalization is not carried out equally and

trickled down its benefits for all otherwise it can easily prove

to be destructive for the already handicap economy of third

world. And no wonder we have witnessed in the course of history

that the lending policies of the World Bank and IMF as well as

the modus operandi of many multinationals have often dropped the

Third World Countries into deeper economic crises than ever

before. It is suitable to work for and not for corporate greed:

there is an ever growing need to globalize liberation from cruel

structural Adjustment Programs and also to make sure that both

the World Bank and the IMF desist from giving any conditionality

in their lending schemes which can further increase the problems

of poor peoples.

In this regard, strong voices have been raised

recently, asking for debt relief or even the total cancellation

of the debts of the poorest of the third world. As a

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Globalization and impact on third world countries

consequences of Such strong demands the IMF and the world bank

have jointly agreed to write off some debts, circa $ USD 27

billion owed them by the poorest countries . However, even after

the revocation of the debts owned the IMF and World Bank, Among

the Third world Countries some (like Mali and some others in the

sub-Saharan region) would still have to grapple with some other

massive bilateral debts from low- interest loans that have been

given them as foreign aid by Japan, France etc.

Therefore, the annulment of foreign debts alone would not be the

panacea to counteract the financial maladies of the developing

world. It would involve something more, especially in the

sensitive area of evolving truly and just economic policies on

the part of the IMF and the World Bank such as those can helped

to build and consolidate the vibrant economies for the common

good.

8.1.2. Impacts on Poverty

Globalization, while requisite to the success of

the global market, has a darker, less visible side. On the one

hand it causes the economies of many countries and smaller

companies to collapse on the other side it helped in raising the

standard of living for many people across the worldwide. However

peoples are driven by globalization into poverty as well. Small

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Globalization and impact on third world countries

industries and third world countries are not capable of updating

their technology as often as their larger, wealthier

counterparts. Due to the incompetency compete with multinational

companies and developed nations, small industries and third

world countries are forced to do business locally, not growing

according to their full potential.

Today, the developing countries are not able or

cannot afford to pay such a high price for the advanced

technology, and with the passage of time they can afford to pay,

newer, more advanced technology exists. The wealthier nations

gets benefits from the process of democratization of

technology .In The global market The wealthy, “winning”

companies and countries are able to sell their goods and

services to a global market, while the “losing”, poorer

countries and businesses are limited to their local markets. .

Increasing the number of “haves” in the world has also

dramatically increased the number of “have-nots”. It has also

driven the poor further into poverty making it more and more

unlikely that they will ever recover.

Globalization creates apprehensions, especially

within nations and companies, between those who have the skills
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Globalization and impact on third world countries

and resources to compete in the global market and those who do

not. When the Internet was introduced it was the wealthier

countries in the world those were able to incorporate it into

their economies before the developing countries. The developed

countries had already established a strong hold on the Internet

by the time the poorer countries were able to buy computers and

pay for Internet .there is prediction, “by 2001, two hundred

sixty-eight million computers will be connected to one another”.

Its drawback it is that it creates high unemployment rates,

putting people further and further into poverty.

Computing power doubles after every two years. This means that

only countries that can afford to pay millions every year and a

half will have the newest technology. By the time they get

access to newest technology is sometime outdated by years,

driving their economies further into slum of poverty because

they are unable to compete with wealthy countries. Free trade,

customs unions, open markets are necessary for the spread of

globalization; however, they obscure the growth of third world

countries.

8.1.3 Social impact of Globalization

8.1.3.1. Migration
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Globalization and impact on third world countries

Globalization also has transformed existing

characteristics of migration by creating new phenomena that are

associated with it. Economic-voluntarily migration is one of the

examples of how ongoing globalization enables people freely move

from one place to another “without changing their native

homeland”.

Globalization has accelerated during the last decades

and seeing an unprecedented rise of international migration. One

of the reasons behind the increase of migration is the

“globalization of world economy and its labor market” (Salt,

1992) that has evolved a system that makes economically

disadvantaged people move from their home countries to places

where human capital is treated as another profitable resource.

According to The World bank report there are around 200 million

people living outside their home countries temporary or on

permanent basis. Even The region of former Soviet Union is not

an exception. To know the positive or negative effect of labor

migration can be beneficial in many ways. Beneficial in a way

that it can be useful tools for shaping public policies for the

regulation of migration and stop the uncontrolled movement of

people. Secondly, it can help to develop policies that will

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Globalization and impact on third world countries

prevent or minimize a negative impact of labor migration on

socio-economic development.

8.1.4. Impact on Education

Education has been recognized as one of the

critical pathways to promote social and economic development.

Education especially for females has been cited as the crucial

investment that a developing country can make and through

education can create better living standards for their citizens.

At the international level, world community has acknowledge it

by making commitments to universal primary education and free

education for all (EFA), particularly for the girls For example

at the 2000 Dakar Word Education Forum, one of the objective was

to eliminate gender disparities in primary and secondary

education and to achieve gender equality in education by 2015.

However, realization of these objectives appears to be

indefinable, predominantly in the Third World. There are several

constraints like socio-economic, cultural conditions in the way

to achieve these objectives. One of the major constraints

affecting education is the high school fees including tuition

fees which the citizens of third world countries are not able to

pay.
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Globalization and impact on third world countries

8.1.5. Political Impact of Globalization

The political globalization is a modern

philosophy, based on neo –liberal ideology, the colonialization

of life and mass consumption (Rana ejaz, p.25). It advocates the

democratic ideals and democracy as a governing system is the

crunch of political globalization. It is the system which has

diminished the traditional division between first, second and

third world. Politics is an important aspect of globalization,

it refers to the accumulation of power in a single international

government. Like in the history families combined into tribes

and tribes into nation so nations are combining into regional

bloc and thence perhaps to a single world (Buckley, 1998, p.51).

Many international organizations have evolved in

the 20th century and United Nations is important from all. The

united is dominating and the United Nations main objective to

maintain peace between nations and the developmental goals

especially in a third world countries. The united states have

members from 185 countries is a prime example of a diplomatic

global village (Buckley, 1998, P.51). Members Countries accept

the rules and regulations of United Nations and thus there is

chance of lesser conflicts. The developing countries can get

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Globalization and impact on third world countries

benefits from this as they are more vulnerable at the hands of

developed states. Political globalization can be used as a

platform to solve issues of all kind whether education, poverty,

environment, or crime. These are global issues that need to be

addressed although the developing countries are the most

delicate. With the support of other countries and international

organizations whether it is through money or human resources,

the developing countries will have an opportunity towards

alleviating those problems. (Ouk Elita)

According to experts globalization is a process

of interconnectedness and interdependence between countries. The

process of globalization integrated the states in term of trade,

capital flow, international labor division and fluid mobility of

people.

In nation state level, globalization changes of the

way we organize political system to avoid its bad effects and

get its advantages. Nation state as human collectivity with its

objectives and goals has forming structures and mechanism in

social orders and cooperation. Institutionalization is the

process of state structure which has its constitution, legal

system, government and public services. Through politics

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Globalization and impact on third world countries

differences among citizens sorted out and their demand about

resource allocations are taken into account. Political parties

provide the forum to the people and represents the demands of

the citizens.

8.1.6. The Global Assault on Health

In the wake of the freedom struggles against

colonialism and exploitive regimes, for self-determination and

independence, many Third World societies in their efforts to

create autonomous models of development carried out national

policies that can benefit people. In the area of health, many

noteworthy steps were taken. In India, significant achievements

were made in Primary Health Care. India’s research work on TB

had a major impact on TB programs all over the world including

the North .The tobacco companies have not been idle either:

their sustained undermining of WHO was recently uncovered. WHO

has issued a report unveiling the covert activities of the

tobacco industry? The WHO Director General noted that: ‘By 2020

the burden of disease due to tobacco is expected to outweigh

that caused by any single disease’.

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Globalization and impact on third world countries

8.1.7. Other important Negative impacts of

Globalization

[1] Job insecurity. Globalization increases competition

which in turn leads to vulnerability of jobs, peoples are under

constant fear of losing one’s job. Increased job competition has

led to reduction in wages and consequently lower standards of

living.

[2] With the advanced technology ,terrorist find better ways of

communication and have access to weapons of sophisticated

nature becomes more dangerous

[3] Multinational Companies causing damage to environment as

poor countries have no proper law to regulate them.

[4] International fast food chains like McDonalds and KFC are

spreading in the Developing world.

[5] Modernization is upshot of globalization affecting the

local cultures through TV and the Internet.

[6] There is chance of diseases to be spread by international

travelers to the remotest corners of the globe.

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Globalization and impact on third world countries

[7] Multinational companies are taking control of local

industry.

[8] Human trafficking.is the result of Globalization

[9] The role of MNC’s increasing beyond commercial activities.

8.2. Positive impacts of Globalization

Globalization is a phenomenon that does have

positive effects on the different aspect of the third world

countries.

8.2.1. Increased competition

One of the most visible effects is the improved

quality of products due to global competition. Customer service

and the ‘customer is the king’ approaches to production have led

to improved quality of products and services. As the national

companies have to compete with foreign companies, they are

forced to meet international standards and customer satisfaction

levels in order to survive in the market. On the other hand

global brands hit the local market it has to meet the

expectation which it has promulgated. This creates competition

in the market and a ‘survival of the fittest’ situation.

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Globalization and impact on third world countries

8.2.2. Employment
With globalization, companies have forayed into

the developing countries and hence generated jobs opportunity

for them. But it can in both ways i.e. Either good or bad,

depending how you perceive it .For the locals it provides the

chance to make investment to prove their talent. The developing

countries have lack of capital which obscure the growth of

domestic companies and in turn less employment. In such cases,

due to globalization citizens of developing countries have many

opportunities of employment.

8.2.3. Investment and Capital Flows

Net inflows of foreign capital can help accelerate

economic growth in developing countries. FDI inflows in

particular can certainly help accelerate economic growth,

especially when these enable the recipient country to promote

exports of manufactures (Ajit .k.Ghose)

8.2.4. Foreign Trade

While discussing the effects of globalization

one cannot ignore the impact of foreign trade on economy.

Relative advantage has always been a factor even in the old

times. Foreign trade is not a new phenomenon but it was

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Globalization and impact on third world countries

institutionalized due to the process of globalization. For the

purpose to regulate the foreign trade and to address the issues

of concerning state WTO and other organizations have been

established.

8.2.5. Spread of Technical understanding

While it is generally assumed that all the

innovations happen in the West, due to globalization, the know-

how also comes into developing countries due to globalization.

Due to the globalization world is now interconnected and all the

world enjoying the benefits of new technological advancement and

third world is no exception. The countries are getting benefits

from the each other’s knowledge and there is a flow of

information both ways. The research in any field no matter what

who conducted it benefits all.

8.2.6. Spread of Culture

There is not a one culture in the world but there

are many cultures and each one has its own characterstics.With

the advancement in the means of communications peoples are

getting closer to each other ,Globalization also make it

possible for people to work in different countries in that way

they have to accommodate themselves according to local cultures.

As in United States there are citizens of different culture but

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Globalization and impact on third world countries

they adapt themselves according to the laws of US and it is

known as melting pot. Due to globalization people adopted the

good practices of other cultures. The movies, food, languages,

music and other forms of art have spread due to globalization.

8.2.7. Spread of Education

One of the most powerful effects of globalization

both on women and men is the spread of education. Now anyone can

know the best facilities he or she can have while sitting at

home. The students from third world have access to the

international educational institutions due to the internet .The

students get admissions online and successfully passed the

exams.

8.2.8. Legal and Ethical Effects

In the past criminals take refuge in another country

and escaped from prosecution but now International Law has been

observed among states. The criminals cannot take asylum in

another country .the international courts of justice is there to

look into these matters amicably. There are agreements between

states and security agencies to curb global. So, we can say that

globalization make it possible to catch the perpetrators of

crime irrespective of which country they choose to hide in.

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Globalization and impact on third world countries

8.2.9. Organization for Environment and Social Concern

In cognizance of the damage that has been caused to

our world, nations have decided to come together to find a way

to save our world environment which is deteriorating day by day.

Many organizations are working in this direction, monitoring

climate change as well as for the protection of animals and

marine life, are undoubtedly one of the good uses of

globalization for the environment.

9. Conclusion

To Conclude, Globalization may well have the

potential of making Third World Countries prospers in all fields

of life. The third world having the relative advantages of

globalization. But there are also several risks involved in it

therefor third world countries take care of it despite falling

prey to it.Globalization for third world is in its initial

stages because in reality it is regional and so pertains the

imperialistic interest of ‘haves ’alone.

Technology-advanced and richer nations should

promote and implement globalization in way that all states are

satisfied and global marketplace should appropriately controlled

by the forces of society and by the state. .It is indeed an open

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Globalization and impact on third world countries

secret that most often the structural reforms that the lending

organizations (IMF and the World Bank) ask the borrowing nations

to embark upon do actually aggravate their poverty!

To sum up, if globalization put in balance, is a

welcomed development for the contemporary world (a world which

due to improved information and communications technology

facilities is often described as a planetary village), but a lot

still has to be done, especially in the sphere of the IMF and

the World Bank’s lending policies to help rather than hamper

economic prosperity particularly to Third World nations.

10. References

1. Associate, C. M. A. K. P., G. R. P. f. Justice, et al.

"Globalization And Its Impact On Third World International
Relations.".
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Globalization and impact on third world countries

2. Wiseman, S. M. J. Globalization and its Discontent. United

States of America, St.Martins's press, llc.
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3. Ahmed, R. E. Globalization and its Impact on Pakistan, Areas
Publication.

4. Yusuf, S. "Globalization and the

Challenge for Developing Countries." (World Bank
DECRG
June 2001)

5. Raffiq, U. "The impact of globalization on third World

Countries."

6. Damper, D. "Are Third World

Countries the Losers or beneficiaries of Globalization?" (2002).

7. John Glenn “Globalization North-South Perspective”

8. Annan “Globalization curse or cure” (2002).

9. Deepak Nayyer “Developing countries in world economy” (2009).

10. WWW.economics .com

11. WWW.Ydesh.com