Failures of globalization Essay

Globalization has assisted Belize in increasing its literacy rate from fifty percent in the early 1980s to eighty percent in the first part of the twenty first century. The life expectancy of the country has increased to around seventy two. This was only forty percent an estimated four decades ago. The average worker is also benefiting with better wages. Better standard of living, higher wages, advances in science and technology and increase in democracy have been the successes of the globalization experiment in Belize. Globalization has also assisted in the increase of management and professional specialty jobs. Between 1983 and 2000 the total number of such positions has increased to a percentage of forty percent in Belize (Barnett 65, 2000). Many American and European firms have set up operations in Belize which has led to the introduction of advanced technology and business practices. This has also added the benefit of spillover effects into the rest of the economy as demonstrated by the robust and competitive private sector of Belize. Globalization has increased the number of jobs in Belize. It also has increased the efficiency of producing goods and providing services at lower costs and higher profits. The incentive to produce has also increased which has benefited the business sector of Belize. The standard of living has increased with technology making efficient transportation possible (Barnett 65, 2000). The division of labor has enabled Belize to maximize the value of its output while resources have not been wasted in goods production that could be imported more cheaply. Globalization has a considerable impact in social policy by the debt crisis and influence of international donors. This has greatly accelerated the integration of Belize with the international market. Opening the economy has also created greater vulnerability to external factors. This has resulted in loss of income and jobs. This leads to demands for systems of social protection, income support, and free or subsidized health care. Currently the government provides income support for old age. One major impact of globalization has the assumption that democracy will be sustained in Belize. The tradition of democracy is significant as it has led to better health and education services. GDP per capita has also increased which indicates that Belize has invested substantial amounts of money in health and education (Bary 125, 2005). However the size of the external debt renders the health and education spending to contribute to budget deficits because of extensive borrowing from foreign donors. A number of macroeconomic trends seem to indicate the government’s success in reducing inflation, modifying the structure of employment, and opening the economy for foreign investors. Local production systems are competing with each other in Belize which allows them to see their position within a wider integrated economy. Another negative impact is that countries like Belize do not have any choice about the restrictions and conditions which are associated with the policies of international organizations like World Bank and IMF. Transnational corporate also have been able to take advantage and demand favorable economic policies to invest in the country. This has alienated some of the domestic interest groups like business and labor (Bary 125, 2005). By opening up with the international economy, Belize has also suffered from a decrease in the amount of power it has over its economic policy. Pressure from international organizations like the World Bank and IMF has pushed the country to remove barriers and allow foreign direct investment to increase trade. Further coercive policies and regulations have created income equalities in the country. Despite the substantial increase in trade and foreign investment, the level of poverty remains high in the country. Liberal financial and trade policies have caused significant inequality and stability in terms of employment and income while reducing the ability of the Belizean government to control its policies. Diminished controls over monetary policies and exchange rates have created income inequalities (Bolland 46, 2006). Certain economic policies have bred increased poverty rates. The results of foreign direct investment on employment and growth have also been mixed. The foreign investment has been saturated in certain areas. Some sectors of the economy have minimal investment. The economy of Belize has become dependant on the international market by the growing volume of cross border finance, investment, goods, and services. The majority of Belizean residents live in the rural areas in contrast to the elite of the country. The differences between social classes have increased after the advent of globalization in Belize. Capital account liberalization has created a negative impact on the local banks of Belize as they are vulnerable to financial crisis and external shocks (Bolland 46, 2006). The decrease in tariffs has also led to decline in production of certain agricultural products.