THE IMPACT OF GLOBALIZATION ON POVERTY

JULIET PORTILLO Globalization has presented many opportunities for developing countries but has also created many problems. The rich is getting richer and the poor poorer. According to Charles Ross Globalisation is now blamed for many ills and is viewed by some as the new threat to the prosperity and growth of developing countries. Private capital inflows has brought with it an increase in technological expertise, much needed investment and opportunites for training and development. We must realise that as poor, capital-deficient countries, it cannot be in our interest to restrict the inflow of capital into our economies. It would seem that to resist capital would propel us back to the stone age. However by allowing investors to benefit from their investments with hardly any benefit for us has resulted in continued poverty as the state's removal of barrier to trade has allowed for the influx of goods from around the world and has also resulted in the privatisation of state owned companies to the detriment of local employees. As power is taken away from governments due to the process of globalisation a capitalist playground is thereby created with little or no distribution of wealth.