Cando processes of globalization help alleviate poverty Essay

Cando processes of globalization help alleviate poverty - Essay Example (Aart, 2005) There are also sources that use "modernization" as a synonym for globalization, and it is sometimes subsumed under "liberalization," "Neoliberalism," and "post-modernism." Globalization may be seen as a structure, a process, an ideology, or a combination of these. Proponents of globalization see it as, "A force which is beneficial to all, individuals and states, in all parts of the world" (George& Wilding, 2002). Opponents of globalization see it "as of benefit to the upper groups in society, to the multinational companies and the affluent world; and as detrimental to the satisfaction of public needs," and as a "force for the perpetuation and accentuation of inequalities within and between groups of countries for the benefit of multinationals and the upper classes. Its constant emphasis on increased competitiveness involves a race to the bottom". A number of factors have led to the process called "globalization." As large corporations began diversifying their products and services by buying up smaller enterprises-usually for stock market, income tax or other financial benefits-they became conglomerates. By then merging with similar-often-overseas-conglomerates, they became huge international entities known as MNCs (Multinational Corporations). The economic breakdown of the Soviet Union gave further impetus to globalization as many foreign firms hurried to establish units in so-called economies in transition. Free trade agreements of various kinds further supported this process. MNCs now account for between a quarter and a third of the world's output, 70 percent of world trade and 80 percent of direct international investment. Perhaps more importantly, international financial institutions, including aid agencies, put conditions on their aid or loans. The World Bank, for example, plays its part by demanding open trade channels as a condition for financial help. Even the partial integration of Europe and the introduction of the Euro made business across former boundaries easier, and consequently, "MNCs are increasingly organizing production and service provisions on an international basis" (Held & McGrew, 2003). The International Monetary Fund strongly advocates less or no government intervention in the economy, but its preconditions for loans have grown from about a dozen to over eighty, thus dictating the economic policies of countries vulnerable to its restrictions. The activities of international banks and aid programs like the IMF, the World Trade Organization and World Bank are not without immediate consequences for working people, and particularly for the poor. The role and activities of some of these organizations are worth quoting: The World Trade Organization was designed as a meeting place where willing nations could sit in equality and negotiate rules of trade for their mutual advantage, in the service of sustainable international development.