Understanding Globalization: Impact, History, and Future

Globalization

Markets and companies tend to spread around the world, reaching a dimension that overtakes the national borders, and that is globalization. It is achieved through the exchange of goods, services, information, knowledge, and culture. Due to technology and its advances, communications, science, transports, and industry, globalization has grown faster in the last few years.

According to the World Bank, it is important to know that economic globalization is not a new tendency, but it has always existed in the history of humanity. In fact, what we currently know as developed countries was formed at the end of the nineteenth century.

According to the World Bank, the international economic integration pace sped up in the 80s and 90s decades, a time when all governments from everywhere reduced political barriers which were hindering trade and international investment.

Globalization is not being developed equally in all countries. According to the International Monetary Fund (IMF), some countries are integrated into the global economy faster than others. These countries are characterized by fast economic growth and diminished poverty. The problem with the poorest and least-developed countries is not that globalization makes them poorer, but they are excluded from it.

In accordance with the IMF, Asia counted with the poorest countries in the world forty years ago, and at the moment they are dynamic and developed countries. This has happened because of the implementation of external openness policies. Besides, this also affects politics because democracy progresses and living conditions are improved. However, advanced countries and only some of the developing countries have benefited the most.

Finally, it is necessary to make it possible for all countries to benefit from globalization. Thus, according to the IMF, the international community should contribute to help the poorest countries to get integrated into the world economy, supporting reforms that strengthen world economies and financial systems to reach faster growth and poverty reduction. According to Francisco Ayala, globalization is simply a word that finally became real. The world is now one itself.