26 December 2013

Multinational- A Threat to Developing Economics

"Globalization is no longer an option; it is a fact Developing countries have either to learn to manage it far more skillfully or simply drown in the global cross currents" Dr. Mahbub ul Haq (late). Globalization instigates the cost effective strategies and the technologies help big MNCs (Multinational Corporations) to switch operations to cheaper developing countries. Companies like GE Capital Services have been outsourcing in India for simple jobs such as collection of money from delinquent credit card users. British Airways along with other

airlines like Swissair have large centers for programming and handling everything from computer messages to air ticket bookings today. Hence, the information and communication technology (ICT), and the Internet in particular, have been instrumental in integrating income and knowledge gaps, and providing potential for bridging time and space to catalyze the chemical process of globalization.

The surge of entrepreneurship and “dot com” wave has stormed the overflowing software and hardware at the every book and corner of the world. This has created a chain reaction of transfer of skilled and semi-skilled IT experts export into the US and Europe from the developing countries, especially from India and to some extent from Pakistan as well. An example of it is the Indians with medical degrees residing in Bangalore who earn a living by acting as secretaries to American doctors by transcribing their tapes. Today, the markets are flooded with Japanese electronics and cars, the US computers and defense equipment, German telecommunication equipment and services, French fashion products and designer wear, South African diamonds, British consumes products, Finnish & Swedish cellular phones and accessories, Australian wool and meat, Swiss watches etc. Compared to industrialized countries, the poor developing countries are just serving as the consumer markets for the "Big Brothers" under the shadows of colonization. South American to African and Asian countries may have won political independence but the economic freedom is yet to be seen. All these economies shamelessly rely on foreign aid and assistance. Even the structural adjustment programs of Breton Woods Institutions (IMF, WB, and GATT/WTO) have not been effective in providing these developing nations the true get-set-go-model but have pushed them into greater problems of poverty and economic chaos unintentionally at the face at least to say.

Economic Growth is a wild horse; it needs to be tamed to serve the real interests of the society. If the horse misbehaves in some societies, leading to deprivation of many human lives, then the fault is not of the horse but of the rider, so it is WTO (Wrong Trade Organization or Wonderful Trade Organization).

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