The Effects of Globalization on the Global South

When studying the Global South and the effects of globalization, we must first dismiss the argument that a more protectionist approach to development would be better suited to meet the needs of these poorer nations. Globalizations prescription of outward-oriented trade policies and transparent government regulations combined with investment friendly taxation and social/political reform have proven time and again to be the cure for a country's economic woes (Panagariya, 2004). Critics charge that opening a country to foreign trade and investment has oftentimes stifled a nation's drive towards economic prosperity and growth. What is very important to remember, however, is that opening up borders and dropping import tariffs is simply not enough. Full scale reform is necessary on all fronts as foreign investors are keen to stifling government regulation or political unrest turning a likely gain into a probable loss. As evidence continues to fall on the side of capitalism and free markets, we see more nations opening their borders to trade and pushing for the reform necessary to make the benefits of globalization a reality in their own countries. Globalization is responsible for lifting more of the world's poor out of poverty than any other force in history (Cooper, 2004).

That said, the problems posed by globalization in the Global South are very real and very distressing. The neo-imperialist construct gives us real insight into how state governments are charged with providing for their people while foreign investment soaks up large revenue streams and sends them abroad. Colonial rulers have been replaced by corporate CEOs with strong emphasis on the bottom line. In theory, countries have their independence; in practice, we see poorer nations subject to very harsh consequences when they step outside the accepted boundaries of government intervention in markets and the globalized system. These nations are then reduced to subjects of a distant land, again dependent on the benevolence of the markets to be able to provide for their citizens. This in turn fosters either rebellion or severe resentment and hinders further reform. Those already playing by the rules benefit greatly, while those just learning the game are subject to harsh penalties and high costs to entry. Creating more wealth is the best remedy to poverty, but these poor countries are unable to reach that level of sustained economic growth without first experiencing the pains of conversion to the free market system (Nevisky, 2004). Oftentimes countries bail when the going gets tough and return to the protectionism that will only further their slide into economic disrepair.

What the wealthy countries need to understand is that globalization is going to alleviate mass poverty on an unprecedented scale. Unfortunately, only countries which embrace this economic reality will benefit. In countries where protectionism has taken hold and tariffs are raised and taxes are imposed on imports, the number of those living on less than one dollar a day has drastically increased (Collier, 2001). Understanding this, it's critical to study the problems imposed on these countries by entrance into the free market system and work closely with state governments to enact programs and safety nets to limit the negative effects inherent in this transition so as to encourage as much participation as possible. The reality of globalization is that the poor are now more aware of how much better off those of us fortunate enough to be living in the Global North really are, magnifying their resentment and creating a violent backlash to globalization while ignoring the benefits it can provide.

Neo-imperialism is not wholly a negative, however. This investment in the Global South is the beginnings of better governance, albeit very pro-Western, than is usually equated with either sub-Saharan states or remote South American nations (Sorman, 2008). Looking into either India or China provides the best example of what acceptance of global economic standards is able to do for a nation. To gain access to the huge amounts of aid or investment available from the North, substantial economic, political, and social reform is required. This has corrected many of the problems inherent in these poorly governed states, and offers the best hope for improvement in the coming years. The problems presented by free markets need to mitigated by these neo-imperialist states, for both the sake of the nations receiving and providing aid/investment. Stable, democratic governance combined with sound guidance from developed states will ultimately be the recipe for alleviating poverty and bringing more wealth into the hands of those who need it most.

Works Cited

Collier, Paul. "Globalization, Growth, and Poverty: Building An Inclusive World Economy." heritage.org. 05 Dec 2001. The Heritage Foundation. 24 Aug 2008 http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20035371~menuPK:34476~pagePK:34370~piPK:34424~theSitePK:4607,00.html.

Cooper, Richard N.. "A False Alarm: Overcoming Globalization's Discontents." yaleglobal.yale.edu. 29 Jan 2004. YaleGlobal Online. 24 Aug 2008 http://yaleglobal.yale.edu/display.article?id=3216.

Nevisky, Matt. "Globalization and Poverty." nber.org. 2004. National Bureau of Economic Research. 24 Aug 2008 http://www.nber.org/digest/mar07/w12347.html.

Panagariya, Arvind. "The Miracles of Globalization." foreignaffairs.org. 2004. The Council on Foreign Affairs. 24 Aug 2008 http://www.foreignaffairs.org/20040901fareviewessay83513/arvind-panagariya/the-miracles-of-globalization.html.

Sorman, Guy. "Globalization is Making the World a Better Place." heritage.org. 2008. The Heritage Foundation. 24 Aug 2008 http://www.heritage.org/Index/chapters/pdf/Index2008_Chap3.pdf.