A Study on the Impact of Globalization in Developing Countries: Focus on Africa from a Liberal Perspective

Abstract

The period between 1945-1989 was marked by Cold war system and three worlds emerged, namely; first world (US and allies like Western Europe, Canada, Australia, New Zealand and later Japan), second world composed of communist states of Eastern Europe and the Soviet and then the third world which are still occupied with the process of development (O’Briens and Williams 2004, p. 115). However after 1989 to present there are noticeable changes and developments taking place and most scholars have named the 1990s as a decade of globalization. O’Briens and Williams (ibid) argue that, economically new parts of the world have opened to capitalist activities. The spread of capitalist activities has been part of globalization process which ties up well with the liberals believe in the possibility of progress (Baylis, J., et al. (2008, p. 110). The authors provide four components in liberalism theory, namely, juridical, equality, democracy and the free market (p. 116). These are the same values embraced by globalization process to a larger extend.

Based on such argument therefore, this paper examined the impact of globalization in developing countries in general, but mostly Africa providing specific examples where appropriate. The paper pegs its argument on the common issues that seem crosscutting in such countries leaning its arguments on the liberalism theory. The paper explored the globalization concept, how developing countries view globalization, benefits and challenges of globalization and then a few lessons learned from the study. The data and information that was used in the study was gathered from the existing literature, books, journals, news papers and internet search.

The paper is aimed at establishing how close to the truth was its study hypothesis, that; ‘Globalization has contributed immensely in the development process of the developing countries, but there are costs and benefits alongside it’. In this regard, the paper highlighted some important issues. It was noticed that there has been rise in Foreign Direct Investment (FDI) through international business and that the use of internet and other related ICT tools have been on the rise. The advancement in technology has facilitated cross border trade to run easily and swiftly. However globalization on the other hand is uneven process and not all places enjoy equally the benefits that come along with it. There are some burdens that have been experienced such as increased cross-border crime, terrorist acts, environmental degradation, climatic change, spread of diseases, and erosion of cultural identity which are all related with globalization process. All the same most countries have embraced the changes that have been associated with globalization and to some extend some policies have been put in place to enhance integration process.

Keywords: Globalization, Impact, Developing countries, Foreign Direct Investment, Trade