What Are Some Negative Effects of Globalization on Developing Countries?
Some negative effects of globalization on developing countries include the exacerbation of income inequalities, the depletion of natural resources and the degradation of traditional cultures. Other drawbacks include the increased spread of communicable diseases and the increased risks of banking and currency crises.
The rise of globalization is entwined with the growth of transnational corporations. These companies typically care far more about maximizing profits than about the development of local populations, according to Boundless.com. This "race to the bottom" exploits poor workers and forces them to work in unsafe and unsanitary conditions for very low wages.
Globalization also stifles the development of local competition because resources are scant, and companies that operate on a global scale can sustain greater losses than small ones. Cheap imports flood markets and make locally produced goods unviable.
Globalization has profound environmental consequences as well, which are felt primarily in the developing world. For many poor people, it is in their best interest to cut town forests and destroy wetlands in order to build farms and factories. Moreover, many states encourage the production of cash crops to be sold at market, rather than food that can be eaten by the farmers themselves. The world only has a finite amount of resources, and globalization uses them up at a rapid rate.