The impact of globalization on developing countries


One thinks of the impact of globalization on developing countries, is a first, the rapid rise of China, India, Brazil and other countries in mind.
But the question remains, how much shares this ascent are due to globalization.


The impact of globalization on developing countries:
Can a country grow only by external influences?

Imagine again, China was the only country on the planet, all around there are only deserts and seas. Would such a country condemned without any neighbors and outside influences to poverty? Could there be no prosperity there, because even access from the outside no "growth momentum" and no new markets could be developed?
Of course you could also ascend a country (without world trade) in such a situation! It all depends only on whether a country is run by a wise and objective government or not.

So then the transformation of many former developing countries to emerging and developed nations explained. In China, for example, the key to success lay in the renunciation of the communist planned economy and the shift towards a market economy. This crucial step was accompanied by further meaningful action. They fought the corruption and nepotism, the democratization spurred reformed laws and cut subsidies.

Certainly the opening of the country to the rest of the world growth forces has released. But a normal world trade without global tariff reductions would have to speak showed positive effects.


The impact of globalization on developing countries:
A high price: the exploitation of cheap labor!

Globalization has thus only accelerated the rise of some developing countries. China, for example recorded an annual average growth of 10% since the 1980th Quite possible that in a civilized world trade would come out (with appropriate customs borders), only 8%.

Perhaps by as well as many a misery or some malformation would have been avoided. In Bangladesh, for example, factory workers today work, so a good 30 years after the launch of globalization, for an hourly wage of about 0.20 euros.
This exploited people know virtually no employment rights and no social protection (occupational accident, illness, retirement) and live in miserable accommodation. Can we call such people as winners of globalization, because they may only make the luxury clothes for us? Do most Bengalis not better but lived 40 years ago?


The impact of globalization on developing countries:
The advantages of free trade

Relocate their factories manufacturers to low-wage country, they do so not determined to help out charity or to underdeveloped countries. They are concerned only about maximizing profits!
You know: a blouse that can be produced in Germany for 20 euros could be made in the Far East for five euros. The advantage arises because you have to pass on to consumers the low production costs, at least for branded hardly.

The blouse is hawked still in the stores of the high-price countries for 50 euros - the profit margin multiplied, although consume high additional costs (transportation, long delivery times, permanent quality control on site, litigation, defense of piracy, etc.) a portion of the additional profits again ,

The international division of labor productivity charged additionally so because of the long transport distances, language barriers, corruption and uncertain legal situations - only because of the abnormal wage and tax differences for this goal to considerable additional expense anyway.

Did the global player it honestly, they had existed from the outset with its Asian suppliers to a fair remuneration of employees.
So they had the seamstresses at least an hourly wage of one euro granted in Bangladesh - instead of the miserable 20 cents, as are common today.
But with a more humane pay the production costs would naturally rise, shrinking profits. Some outsourcing would probably hardly worthwhile because, after all, also incurred transport costs and higher costs for quality control.

Too bad that reputable brands not guarantee by itself a fair wage of factory workers in far abroad and certify it with a label.
Also that Western "social" Governments do pity no move to adopt appropriate legislation. Rather they are wasting tens of billions of euros each year on ineffective development aid and debt relief, as to insist on the maintenance of a fair minimum wage for all imports.

By the will of the powerful globalization lobby, it may just be no change in the law. The since 1980 existing conditions (largely duty-free treatment) are just perfect for their business model.


The impact of globalization on developing countries:
The productive progress is ignored!

For all I know, considerations about the rise of developing countries a very important factor is overlooked:
the enormous power of the productive progress!

And this productive progress is not tied to globalization or coupled. The knowledge of people is increasing constantly and of course these findings automatically benefit of mankind.
150 years ago, yet every second employee had to work in agriculture to ensure food security of the population in Germany. Today, this employment figure is less than 2 percent.

Just as rapidly to many other areas of production revolutionized. The size and thus also the amount of work for the production of a computer, for example, shrank to a minimum. The first high-performance computers had to be set up in large halls, today, puts a laptop to stow in spite of thousands of times higher performance in the briefcase.

Summary: The growing prosperity of many developing countries due in part to government reforms (fight against corruption, stabilization of the market economy, improving education and infrastructure, legal certainty for domestic and foreign investors, welfare state structure, removal of privileges, etc.), the other part but on technological progress.


The impact of globalization on developing countries:
a large part of humanity today is worse than it was 30 years ago!

The average income in the last 30 years in most developed countries due to globalization fallen.

The majority of developing countries, it still is just as dirty as three decades ago. This is usually because the old corrupt power structures have not been eliminated in these countries that there is still family clans have the final say, who are interested (in the degradation of their privileges) hardly to improve the conditions.

So globalization (tariff reduction) was only when reform-minded governments accomplish something, where it has, at best, minimal economic growth fueled - and this Plus but was bought with the exploitation of tens of millions of slave laborers.


The impact of globalization on developing countries:
How would stand the erstwhile developing countries without globalization?

Had it (tariff reduction) not given globalization, many developing countries have possibly developed better!

The prosperity in the industrialized countries would have (without tariff reductions) but almost doubled without globalization influences!

Even if a part of this growth would be flowed into a general reduction in working hours (reduction of standard working time to 30 hours per week), German, French, English, Americans, Japanese had so today about a higher 50 percent net income and the most industrialized countries no national debt.

From this strong position, it would have been easy, the development assistance to reform-minded Up enforce countries and create strategically effective overall concepts. I am firmly convinced that this would get most developing countries better than the global wage dumping system.


The impact of globalization on developing countries:
How fails Africa?

Despite some successes in recent years, the African continent is still a big trouble spot. But what the failure of so many African countries?

1. At the corruption.
Corruption and favoritism seems to me the main evil of African cultures. Incompetent governments stick to the power and embezzle government revenue. According to African tradition, they see it as their duty, even unqualified friends and family members to accommodate the civil service. Thus, a gigantic water head forms. In some places, there are ten times more "minister" and officials as necessary.

2. On unbridled population growth.
Birth control is an alien concept in many parts of Africa. The population of Africa has increased eightfold in the last 100 years, for the next 100 years, a further quadrupling is expected. However, many Africans can not even feed itself already today. Trusting in God and the help of Europe (two out of three Africans see their future in Europe) is a responsible family planning firmly rejected.

3. At the mentality.
Many Africans feel good in the eternal victimhood. After their perception Africa is being exploited for centuries. First it was Arabic, later American slave traders, then came the colonial period and today it is the capitalism of whites.
At the same time many Africans meritocracy is away. Has the neighbor more than you do, then there is not about to his skill or diligence - the neighbor has obviously better spirits or witches. Still, each year killed thousands of "witches" in Africa.

4. At the crime and violence.
Brutal warlords can not settle the black continent. In the Congo alone to fight each other 70 different rebel groups. Many states are too weak to curb the rampant violence and lawlessness.

5. The duty-free ruining local economies.
Cheap Asian textiles flooding the African market and ruin local manufacturers and Schneider. Imported foods make domestic farmers and ranchers a hard time, subsidized cotton from the United States ousted the domestic production, foreign trawlers (which generously fishing rights were sold off) make local fishermen out of work. Africa would have to protect over duties from the worst dumping imports. That conclusion is contrary to the global free trade delusions.

6. The elites do not return.
Africa also has many smart people who have been trained at the universities (especially abroad). But this valuable human capital is largely lost the continent because Africa is not attractive for the elite and the educated academics rarely return to their home countries.

7. The absurd subsidy protectionism is unfair!
The honest customs protectionism by politicians and the press condemned as the devil's work that really shameful subsidy protectionism against it deemed necessary.
Agriculture, for example, funded annually with about 350 billion euros which
is totally unnecessary and counterproductive (it undermines all market principles). Under this abstruse subsidy policy and developing countries are suffering.

8. gooders reaffirm the African sense of entitlement!
If ever in the Western media from the exploitation of Africa's speech, you do not have to wonder if more and more Africans feel confirmed in their victimhood. They see it as their right to emigrate to Europe.
The media stir with their heartbreaking misery reports an entitlement mentality that is contrary to the construction and modernization of Africa. The African citizens is de facto relieved of his responsibilities - the West is to blame and should it judge.
Here are the biggest problems homemade (population explosion, corruption, free of duty, widespread violence, lack of wrongdoing, religious fanaticism, fatalism).


Africa could go very well!
Africa benefited, like all underdeveloped continents and countries, largely on the pioneering inventions and scientific achievements of so often maligned West.
In many areas they can more expensive stages of development loosely skip generations. You do not, for example only tens of billions of euros to invest in a stationary electricity or telephone network, they may be the same use highly efficient solar systems and versatile smartphones. Have almost for free the results of our 200th research in medicine and agriculture available, etc., etc. - all this is hardly respected.
Is poised to have swallowed some trillion euros (investment in the future that have mainly shouldered Western societies) only the rocky road from the telegraph to the smartphone.

All these fantastic, prosperity, more innovations, one of which has also long Africa benefits are not the West fell into my lap. Our ancestors have worked hard under great hardship. The life of a worker eropäischen in the 19th century was probably privation, cruel and demanding than that of the often lamented the average African in that time.
The modernization of Africa (the z. B. Germany at that time cost a lot of money and human lives) in the colonies failed once not only the resistance of the people and their old traditions, they also failed to a lack of (hated) work discipline.


The impact of globalization on developing countries:
Hope for Africa: Shoe factories in Ethiopia

I just saw an interesting TV documentary about the positive development in Ethiopia (has about as many inhabitants as Germany). This country has recognized the signs of the times and investing in education, road construction, legal security, the fight against corruption, etc. - with strong Chinese support.

Even German shoe manufacturers have now discovered this land for themselves and build there new factories. Unlike Bangladesh working conditions there are humane and conform to the European level (40-hour week). Unfortunately, it falls short of payment - there are only 12 cents an hour paid (20 euros a month)!
Why so stingy? Why does a renowned global players exploiting the plight of other so and only pay the "usual local" set?
Incidentally, the dark side of globalization is also evident in this example again: The structure of the shoe factories in Ethiopia was followed by the closure of plants in Portugal.

Portugal can not keep up with hourly wages of 12 cents course. The country is precisely because of these practices in decline and likely to be rescued with German taxpayers' money or with subsidized loans (government bonds).
In the end, we support with our donations the global wage dumping system that has extremely negative impact on our earnings,
but the prices of many imported goods hardly lowers (but especially the returns of global players increased).

As an aside: Even Ethiopia owes its success to a large dose of protectionism. The government banned the export of hand the coveted leather raw material , at the same time it requires foreign investors to produce exclusively for export (to the traditional domestic shoe production alive).


The impact of globalization on developing countries:
Developing countries also suffer from the global financial system!

Globalization (tariff reduction) resulted in the global gearing and deregulation of financial markets. The banks and especially the shadow banks are now largely uncontrollable and therefore unmanageable. Under these grievances, of course, the developing countries, the ever charged impending collapse of the world financial system as well as their economies.

But what if it actually comes to disaster? What happens if the amoral principle of artificial multiplication of money by central banks collapses and fails the low interest rate policy?
When there were the gold standard (up to 1971), one could exchange his dollars in gold (for $ 35 per ounce). But today this guarantee is no longer valid, so the money supply may increase beyond all bounds. The value of money is based on trust today only - there is no coverage.

Excuse me!
There is no equality of opportunity - even when it comes to forming opinions. While the capital (corporations, speculators, lobbyists, media, governments) can afford the best translators, I have to settle for a simple language program for financial reasons. I hope, however, that the text is nevertheless reasonably understandable and that no major mistakes have occurred. Thank you for your understanding.
Manfred Julius Müller, 24939 Flensburg (Flensburg has approx. 90,000 inhabitants and lies on the German-Danish border)


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Background and analysis:
German Political Encyclopedia: independent & non-partisan
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Poverty research: Which countries with high birth rates are really doing well?
The infiltration of democracy by the Cancel Culture movement …
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© Manfred J. Müller, Flensburg,

Manfred J. Müller has been analyzing global economic processes for 40 years. He is considered a pioneering thinker. For example, 20 years ago he called for a kind of supply chain law that obliges manufacturers and dealers to only import fairly remunerated and produced goods to Germany (finally became law in May 2021). He has also long recommended a minimum profits tax for large companies on domestic sales (Joe Biden's proposal for a global minimum profits tax in spring 2021 is finally moving in the same direction, but is far too lame and will hardly be implemented internationally). Manfred J. Müller has also been fighting for his idea of wage cost reform for three decades (gradual reduction of social security contributions with counter-financing through value added tax and customs duties).

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