Economic globalization is important for economic development across the world. Economic globalization, which indicates cross-border flows of goods and services, capital, people, data and ideas, has been immensely helping not only developed and developing countries but also less developed countries to improve economic conditions for several decades. It increases the scale of cross-border economic activities across the world and helps economic development through a variety of means including increasing trading opportunities between countries, allowing business organizations in developed countries to invest in developing countries and providing opportunities for making trade agreements. But the adverse impacts of economic globalization, which also raise output and productivity, create more jobs and bring many other economic, social and other benefits, lead to concerns.
Definitely, there are economic, social and other adverse impacts of economic globalization. Globalization creates uneven development among countries. It provides more opportunities to developed countries because of favorable trade rules and the better capacity of developed countries in technological and other aspects leading to an imbalance in the trade that benefits developed countries more. It leads to the exploitation of underdeveloped countries to benefit core countries. The underdeveloped state of Latin America is rendered a direct result of the exploitation of capitalist development — the driving force of economic globalization — especially during the colonial period. The exploitation of resources in less developed or underdeveloped countries leads to a poor path dependency of such countries on developed countries affecting developing and underdeveloped countries from desirably developing.
 Moreover, job insecurity, currency fluctuation and price instability are some of the important negative impacts of economic globalization. Also, it benefits wealthy people and wealthy organizations more. Notably, increased challenges to local small scale businesses are a major adverse impact of economic globalization in many countries, especially less developed countries. Increased corruption and potential global economic recessions because of the interdependence of the global economic systems are some other important negative aspects of economic globalization. Since economic globalization facilitates giant corporations more, economically developed countries having more multinational corporations, along with the advancement in technological products, can be economically benefited more. Among other negative outcomes, environmental degradation and workers’ exploitation are notable.
Definitely, there are many other limitations of economic globalization which has resulted in the expansion of global markets and international trade. Economic globalization increases exposure to risks from localized economic crises. Among others, capital flight, moreover, is a notable negative outcome of economic globalization. In addition to economic outcomes, there are adverse social and cultural outcomes of economic globalization. In this respect, the loss or erosion of local cultures is an important negative outcome. But such an adverse outcome of economic globalization is more in those countries where institutional, policy based and other efforts to protect local cultures in the face of economic globalization are absent or inadequate.
But economic globalization has more positive outcomes than negative ones. It has created more income opportunities, lowered the cost of production and made lives better not only in developed countries but also in developing and less developed countries. It helped to reduce the price of goods and created a range of choices of goods and services for consumers across countries. It resulted in sustained economic growth, increased prosperity and reduced poverty in many countries including less developed countries. Extreme poverty has declined significantly (around thirty five percent since 1990) in the world. The per capita income and living standards have increased across the world because of economic globalization. Moreover, it helped spread technology and innovation across the world.
Moreover, the negative outcomes of economic globalization do not depend on the loopholes of economic globalization alone. They depend on local policies based, institutional capacity, economic management and many other steps taken by countries. The economic benefits of it notably depend on the level of income of a country. A lack of policy support to face economic challenges put forth by economic globalization, a lack of institutional capacity and a lack of resources are some of the important causes of facing the negative outcomes of economic globalization. Definitely, institutional capacity helps face the challenges of economic globalization successfully. Among others, economic mismanagement and corruption also lead to the negative outcomes of economic globalization. Economic mismanagement is a concern in many countries.
Since economic globalization cannot be disregarded at all and has many positive outcomes across the world, its adverse impacts need to be mitigated and flaws and challenges need to be well-addressed to secure its better outcomes globally. Definitely, effective policies and plans are imperative to face the adverse impacts and deal with the challenges of economic globalization across the world. But less developed countries need to improve their capacity including institutional to face the economic challenges of economic globalization including potential global economic recessions and the threats to small scale organizations. Also, less developed countries need to get some advantages from more resourceful countries to get access to global markets and secure the beneficial outcomes of economic globalization.
Definitely, some other measures including increased international cooperation are imperative to reduce the adverse outcomes of economic globalization and face the economic and economic globalization-oriented other challenges across the world. The development of leadership is also important for securing the economic and other beneficial outcomes of economic globalization. This is more important for less resourceful countries where corruption, economic mismanagement and other challenges are more. Countries also need to develop the capacity to protect good local cultures from the threats of economic globalization and promote them. But effective plans are important.
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