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Trade liberalization can provide drastic economic improvements to a developing nation, in addition to bolstering environmental resource bases through technology, policy and funding. Part of Africa's trouble is that the political instability has prevented foreign investors from assisting in the development of regional resources, in the mining industry especially. Whereas, the overall GDP of places like China, India and South America has gone up considerably in the last few decades. Several case studies can illuminate some of the positive and negative effects of trade globalization.
New Delhi, India has seen much wealth from trade liberalization. Globalization impact here has been two-fold. On a positive note, the auto exports bring in $10 billion (USD) per year and increases competition in the global market. High-paying automobile makers moved in and grew the sector 18% over the last decade, providing many local jobs and skilled training. As a result, the population of New Delhi has a per capita income double the national average and the number of registered vehicles rose 136% to 3 million since 1971. The danger, of course, is pollution. Roughly 67% of total air pollution in India is caused by motor vehicles. While exports must meet strict requirements, many of the cars intended for local distribution have much more lax standards than American or European made vehicles. UNEP found that by creating globalization business and production standards, these can help keep exploitation from occurring. Also, in this case globalization and education should go hand in hand, as consumers are made aware of their part in the protection of the environment.
A 1998 survey in the Philippines showed that 67% of domestic water users were prepared to pay an additional three cents per cubic meter of water on their monthly bills. Commercial users were less willing to pay their share, so a "one-time contribution" approach was favored for large users. The funding derived from this method could produce up to $101,062 to cover the costs of watershed protection. Prior to recent developments, there was a charge for the use of the Makiling Botanical Gardens, but most of the other recreational locations charged nothing and the required consumer contributions were mandated far too low (less than half of what people were willing to pay). Trade liberalization was not so much the problem in this case. Rather, local economics were in need of assessment.
A similar instance occurred in Romania, when water demand increased fifteen-fold and it was discovered that the national raw water price was a mere 25% of the full economic value. Ninety-percent of respondents in urban Romania agreed that water should be priced to reflect service, administration costs and value of a natural resource. Ninety-eight percent of those surveyed favored a new trade strategy and government trade liberalization, rather than local privatization.
While Chilean mining only provides 2% employment for its locals, Uganda's fishery sector provides over one million steady jobs to its natives. So there is no "one answer" for the impact of globalization and trade liberalization around the world. Globalization challenges include: keeping tabs on foreign investors and ensuring that labor contracts, environmental hazard fines and public education are in compliance with global standards. The benefits of globalization are apparent in developing nations, therefore cutting off trade or making foreign business ventures completely illegal is simply not economically viable. |
Category Seven 
