Globalisation/Globalization

The results of economic liberalisation/globalisation in these countries has resulted in closing the inequality gap in income between themselves and the more industrialised nations, improving the standards of living of impoverished nations people, the poor.

             African economies improved the most during 1995-96, although minute in comparison to Asian DC"s. Of the African LDC"s, growth had increased 2.2 per cent in 1995, 8 of these countries experienced a staggering 5 per cent growth. Their economies flourishing from economic liberalisation in particular, prosperous international environment with buoyant commodity prices boosting export earnings. .

             What globalisation has done for the poor is amazing. It has opened the door for the inflow of private capital, whether it is investment in real capital assets or the purchase of shares. It has improved access of a nation to more productive technology thus hand in hand with the said above leads to a greater economic outlook for a nation. Globalisation works in creating opportunities for poor, so that they may raise their welfare.

             While many of these DC"s are assuming an increasing pre-eminent role in the world economy, many of the weaker DC"s the LDC"s for reasons overwhelming have yet to see the profitable outcome that globalisation has for them. This is also known as marginalisation. Marginalisation is the result of happenings in the world economy that have not been favourable to weaker economies, such as LDC"s. But what is more influential to marginalisation is their internal political and economic problems.

             The poor economic performance of these LDC"s is that at least 1/3 of the LDC group have been affected by civil strife and political turmoil, which have severely restricted development efforts and most cases, have had shocking economic and social outcomes. Other problems such as structural constraints may have also halted the progress of globalisation to impoverished nations, thus hindering the progress to the rise in welfare of poor.

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