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Are we benefiting from globalisation?

22 November 2004, 18:00 PM
OPINION
By Kathita Rahman
22 November 2004, 18:00 PM
Globalisation -- the growing integration of economies and societies around the world -- has been one of the most hotly-debated topics in international economics over the past few years. In its most general sense, globalisation is used to convey a sense of an emerging global culture that is not specific to any particular group or nation. But yet the question arises how far it is beneficial for the developing countries like Bangladesh for expanding its trade and finance. Bangladesh has achieved independence in 1971 and since then it has been trying hard to establish its existence in global atmosphere. The country faces the challenge of achieving accelerated economic growth and alleviating the massive poverty that afflicts nearly two-fifths of its 135 million people. To meet this challenge and more particularly move towards an open economic regime and integrate with the global economy, or in other words to reduce poverty level and merge with the world we have had welcomed globalisation. Globalisation affects productivity, imports and exports, technology, and growth rates. Some of the trends of globalisation are an increase in international trade, increased use of global telecommunications, an increase in immigration, development of global financial systems, and the development of global business standards. In addition globalisation helps toward free flow of information.

The most powerful force for transmitting the ideas of democracy and human rights across borders is the revolution in information technology in the second half of the 20th century. The telephone, television and the internet have been the key tools. Innovation of satellite television has connected people's emotions across borders and oceans.

Besides these factors, globalisation has contradictory effects on economic development of our country. In case of Bangladesh, the problems of landlessness, impoverishment and consequent rural out-migration are compounded by environmental hazards as well as environmental degradation caused by economic and other development activities. Massive unemployment, low wages and weaker labour movement need to be addressed by a broader coalition of trade unions and civil society groups. Moreover it has such negative consequences for women and children that some commentators argue that globalisation is 'male'.

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Though globalisation has given women a power to end the system that breeds poverty, exploitation and oppression but practically women workers provide the cheap labour from which super-profits are extracted. Since the adoption of market liberalisation policy in the late 1970s, a totally export oriented garment industry has engaged more than 500,000 women workers in Bangladesh. Cheap labour seems to be the driving force and the issue of equity and environmental sustainability are posited as mutually exclusive values. It is not easy for a Least Developed Country (LDC) like Bangladesh to specialise in manufactured exports. Having low wage costs can hardly compensate for its lack of marketing skills and infrastructure and poor overall investment climate.

Another point is that the concept of globalisation emphasises international trade. Though free trade can bring us benefits but each international accord, agreement treaty and understanding limits our freedom of action and may harm our culture. Globalisation, in this case, is viewed as a threat to national sovereignty.

Thus we can find that there are two aspects of globalisation -- positive and negative. Globalization brings opportunities, but it also brings risks. While exploiting the opportunities for higher economic growth and better living standards that more openness brings, policymakers -- international, national and local -- also face the challenge of mitigating the risks for the poor, vulnerable and marginalised, and of increasing equity and inclusion.

Kathita Rahman serves with UNDP-CBGMP Project.