The term ‘gGlobalization’ refers to the mergingers of national economies into a single worldwide system . Globalization has opened the markets , competition and the free flow of goods , services , capital and knowledge . Globalization has brought faster growth, easier access to new technologies, cheaper imports and greater competition. Globalization has shaped the world economy more efficiently and has created millions of jobs, as in the case of China and India. At the same time, gGlobalization has left behind many countries behind, and this it has affected developing countries as well as developed countries.
For instance, because of globalization, China’s real GDP has increased by approximately 400% in real GDP while India has achieved approximately a 100% increase in real GDP. On the contrary, it is argued by critics that gGlobalization denies food to those who are suffering from hunger and arms them with weapons. Globalization has generated wage inequality, high unemployment rates, has weakened educational and health programs in poor and underdeveloped countries. [Suarez-Orozco, M. M., Qin-Hilliard, D. B, 2004].
Globalization has made a yawning gap between rich and poor countries. Due to globalization, the rich areis becoming richer and the poor areis becoming poorer. Under globalizsation, rich countries will tend to control the world economic scenario through the global economic system. It is a pity to note that poor countries are finding it difficult to function even at a bare minimum standard of basic competence in the globalisglobalized economy. [Mittelman, J. H. 2002].
Economic indicators prove show that West Africa hais in fact has attracted a good share of FDI flow and is able to achieve good GDP growth mainly by opening their economies. However, its long- term debt has increased to $4 billion in 2006 as compared to year 2000 and its debt servicing capacity has decreased to 8. 8 in 2006 from that of 11. 4 in the year 2000. This indicates that the West African economy is reeling under the debt trap, and sinceas it is importing heavily to cater its internal needs rather than concentrating on manufacturing or producing the same.
The nNew global economy has pushed Third World countries into a quagmire of uncontrollable debt traps. It is alleged that the World Bank and the IMF have precipitated the crisis by advancing loans of billion of dollars to Third World governments billion of dollars for ill-conceived projects and many countries have been compelled to borrow additional loans from the IMF mainly to service their massive debts . [(Michalopoulos, Constantine, 2001]).
The U. S. , by employing inventive calculations and elucidations of WTO agreements on agriculture, has institutionalized subsidies to U. S. agro- exporters while dissuading developing countries from implementing new fiscal support for their detrimental farmers. [Murphy, Sophia. 2002]. The principal aim of the WTO is to attain a laissez-faire trade system. Hence, it works for towards the lowering of obstacles to trade. Though,While the WTO has been called as a democratic institution but , in reality, it WTO is dictated to by the advanced industrialized nations and by the powerful transnational corporations of these rich countries. Developing countries have little say within the WTO framework.
Cotton- producing West African countries argue that the EU as well as U. S. and Chinese subsidies to the agriculture segment are anti-competitive and are ruining their West African economies. Small and poor countries are not benefited by opening their economiesy and do not have the market access benefit, because their product offers may not look more attractive to other trading partners. It is a pity to note that small and poor countries individually account forof less than 0. 05% of world trade, and collectively for about 1% of international trade .
Hence, these countries are structurally at a disadvantage in terms of negotiating market access. [Aaditya Mattoo & Arvin Subramanian, 2004]. Hence, this research study tries to analyse the iImplications of the WTO for developing economies, with special reference to West African cotton- producing countries, and tries aims to prove that, although globalisglobalization measures have yielded positive results in general in West Africa and other parts of the world, but the WTO in particular it is to being criticised for not being supportive and encouraging to the developing and poor nations.
This research essay also focuses on how globalization has left behind many countries, and how poverty is haunting these countries, and how the international community is going to address this perennial social issue. This research study tries to establish that globalisglobalization has become an unsustainable model .
This research study also examines how West African countries are left behind due to the globalization, and are still struggling to manage to service their foreign debts with their meagre GDP. This research studyis also raises the following ing its concern:s Is whether globalization is really a boon to developing countries, or is it a blood- sucker thereby that is destabilizing the developing countries’ economies?