GLOBALIZATION: ALTERNATIVE FOCUS FOR DEVELOPING COUNTRIES

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Two or three decades ago the concept of globalization was rarely thought of and hardly in our daily use in contrast to today, where it is used everywhere, evoking strong intellectual and emotional debate and reactions. The concept of globalization has come to mean different things for different people, nations, and continents, and it became a household word during the end of the twentieth century, and the beginning of the new millennium.

          Many have great suspicion on the intent of developed countries' motives for pushing globalization, often impugning the fact that it is being used to access remote markets for further exploitation, which was the order of the day during the early 20^th century and the hey days of colonization.  Globalization may not, after all, be farfetched from neo-colonization if the terms of the agreement are not carefully scrutinized. Many suspect that it will destroy nations not capable to compete, particularly the developing countries.

          With the recent level of international consention in which liberalization, democratization, increasing international trade and investment flow have increased dramatically, globalization has thus sunk-in as an inevitability. Hence, nations not having the capacity must start getting prepared to face it squarely, and or devise alternative strategies to counteract the potential outcome of globalization based on the suspicion that developed countries will leave the developing countries 'high and dry'.

          Towards this end, developing countries must understand that they do not have the socio-economic conditions, governance systems, and infrastructure, which drive and galvanize globalization.  Hence, they will certainly be limited or hindered in their ability to effectively reap the benefits of globalization, particularly in the context where they have to compete with multinational companies from the developed countries who have great access to the best financial markets in the world, the best political environment that creates economic and social stability.

          Consequently, most of the developing countries in sub-Saharan Africa, Asia, and the Caribbean must start looking inward with a view to developing a common market for developing, which will facilitate a level playing field. Unfortunately, most developing countries and transition economies do not have the necessary and sufficient resources, capacities and competencies to manage globalization in order to maximize their potential benefits and minimize their inevitable unintended adverse consequences.

          In order to build and sustain these capacities, these countries need to establish public-private partnerships, both domestically and internationally within its bloc of developing nations, so as to be able to manage the various dimensions of globalization and their interrelationships to mutual advantage. This effort will help developing countries to develop adequate Research and Development perspectives, sustainable technological innovation that will make them less reliant on the developed countries, and advanced medical technology to support the lifespan of its human resources.

          So far, some developing countries, such as India, Malaysia, Indonesia, Thailand, and Brazil have done remarkably well and must be emulated by other developing countries. Based on data for the last few years of the 1990s and up to the end of 2002, it is clear that Asian developing countries mainly traded among themselves and with Japan, and a growing share of their investments also came from within the region. Consequently, developing countries must focus on instituting effective and stable democratic governments that can play significant roles in creating the enabling environment for the effective management of globalization as a first step. Subsequently, the governments of these developing countries must then start discussions on adapting strategic and structural changes in governance, policies, and technology that support the level of globalization among developing countries as first toward the larger globalization with the developed countries.

          Furthermore, the developing countries' governments must lead and reorient the society in general to undertake to equip themselves with the values, institutions and capacities for managing globalization to an advantage. This will help to link whatever necessary public sector reforms that developing countries are undertaking to develop institutional capacities and competencies for globalization.

July 17, 2006

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