Economic Development and Globalization. The situation of DCs and LDCs, impact of globalization of DCs and LDCs, and challenges of LDCs.

2. Table of Contents
• Introduction
• 1-1. Economic Development
• 1-2. Economic Globalization
• Globalization
• 2-1. Characteristics of Globalization
• 2-2. Process of Globalization
• 2-3. Adv + Disadvs of Globalization
• Globalization impacts in DCs and LDCs
• 3-1. Economic impacts on DCs
• 3-2. How globalization affects LDCs
• Conclusion
• 4-1.Challenges for LDCS

3. Introduction
1-1. Economic Development
1-2. Economic Globalization

4. Economic Development
Progress of increasing national incomes involving
social systems
•Measurement:
• GDP per Capita
• HDI
•3 primary factors that influence of economic development
• Growth of Human Capital Index
• Decrease in inequality figures
• When there is structural changes that improve the
general populations’ quality of life

5. Economic Globalization
Process of increased interconnectedness among
countries.
• Reflects the continuing expansion and mutual integration of
market frontiers
• Irreversible trend for the economic development
•2 driving forces for economic globalization
• Productive activities
• marketization
•Role of Globalization
• essential to a nation’s ability to yield the maximum potential
from its available resources.
• The success of economic development of nation;
• hinges on its ability to globalizes

6. Process of Globalization
• A Multi-dimensional Process:
• A Top-Down process:
Economically: opening up of national market, free trade and commerce among nations, and
integration of national economies with the world economy.
Politically: limited powers and functions of state, more rights and freedoms granted to
the individual and empowerment of private sector;
Culturally: means exchange of cultural values between societies and between nations;
and ideologically, it means the spread of liberalism and capitalism.
• As a result, the values and norms of developed
countries are gradually rooted in developing
countries.
• This leads to the growth of a monoculture - the
culture of the North being imposed on the South.
• Involves the erosion and loss of the identity and
the cultures of developing countries.
Globalization is thus a one-way traffic: it flows from
the North to the South.

7. Globalization
2-1. Characteristics of Globalization
2-2. Advantages and Disadvantages of Globalization

8. Characteristics of
Globalization
• Liberalization
• Free Trade between countries:
• Increasing volume of international trade, FDI and general
international capital movements
• Increasing amount of assets and liabilities of each country with
the reset of the world
• Simultaneous competition in markets between new competitors
from all over the world places acquired positions at risk,
necessitating extremely rapid structural adjustments in numerous
areas
• Globalization of Economic activities
• Control of economic activities by domestic market and
international market
• Coordination of national economy and world economy
• Borderless globe

9. Globalization; irreversible trend
• Under the framework of WTO,
• Reduction of tariff and NTBs & Open current accounts and
capital accounts
• World’s economies integrated into a whole.
• MNCs – became main carriers of economic globalization
• Global expansions of MNCs reshape macroeconomic
mechanisms of the operation of the world economies.
• FTAs
• Structural economic reform to integrate itself into the process
of the economic globalization.
• Win-Win agreement
• Eg/ U.S.-China FTA
• U.S. – increase Exports of goods and services to China
• China – boost economic growth by increasing its share of the US
market

10. Globalization in the
perspective of
DCs and LDCs

11. Advs& Disadvs of
Globalization
Advantages
1. Education 2.
Employmen t3.
Cheaper Price4.
Quality of Product5.
Commun ication
Disadvantages
1. Loss of Culture
2. Health Problems
3. En viron men tal
Degradation 4.
Disparity

12. Economic impact on DCs
• Globalization;
• En ables busin ess to compete worldwide
• Brin gs reorgan ization at the in tern ation al, n ation al, an d sub-
n ation al levels
• 3 major forces of Globalization
• Globalization of all product an d fin an cial markets
• Techn ology
• Deregulation

13. Examples of globalization of
DCs
Example:
•China:
• Reform led to the largest poverty reduction in history.
Between 1990 an d 2005, poverty rates in the coun try fell from
60% to 16%, leavin g 475 million fewer people in poverty.
•India:
• Cut its poverty rate in half in the past two decades.
•Uganda:
• Poverty fell 40% durin g the 1990s an d school en rollmen ts
doubled.
•Vietnam:
• Surveys of the coun try's poorest households show 98% of
people improved their livin g con dition s in the 1990s.

14. How globalization affect LDCs
• Increased Standard of Living
• Econ omic Globalization gives govern men ts of developin g
n ation s to access to foreign len din g
• Access to New markets
• Globalization leads a coun try to freer trade with other
coun tries
• On e of the largest ben efits to developin g n ation s
• Widening Disparity in Incomes
• In crease the wage gap between those who are educated an d
those who are n ot
• Decreased Employment
• Automation in the man ufacturin g an d agricultural sector
lesson s the n eed for un skilled labor

15. Examples of globalization of LDCs
• Many countries in Africa;
• have failed to share in the gain s of globalization .
• exports have remain ed con fin ed to a n arrow ran ge of primary
commodities.
• Experts’ suggestion
• Some experts suggest poor policies an d in frastructure, weak
in stitution s an d corrupt govern an ce have margin alized some
coun tries
• Other experts believe that geographical an d climatic
disadvan tage have locked some coun tries out of global
growth. For example, lan d-locked coun tries may fin d it hard
to compete in global man ufacturin g an d service markets.

16. Conclusion
4-1. Challenges for LDCs

17. Challenges for LDCs
• Developing countries are bogged in dilemma;
• If they keep themselves away from this process, they will
surely be left far behind the development of other economies
• If they participant actively in the process, it is most probable
that they will be reduced to annexes of developed countries
due to the latter’s dominance in the process
• In the view of this anticipation,
• the interests of developing countries must be guaranteed and
their say enlarged in the process of developing new
international economic order
• Progress of Globalization should bring huge benefits for the
world economy, also should make the benefits available to
every country and to different departments and interest
groups

18. Challenges for LDCs
• Step of reforming economic system and readjusting
economic structure should be quickened
• the government should strengthen its functions
• the government should play the major role in establishing
incentive and constraining mechanisms
• the government should focus their efforts on stimulating rapid
scientific, technological and education development

19. Thank you