Is Economic Globalization Good For Developing Countries

Economic globalization is a phenomenon that countries in the world tend to connect to each other by trading products, technologies and capital. With information era coming, economic globalization is unavoidable of each country. It connects each country tightly on economics. People in many developing countries can get the products they never see in their countries; many techniques were imported by developing countries increased production efficiency. On the other side, economic globalization caused some problems to developing countries, such as the ecosystem was threatened by exporting too many resources to developed countries. Is economic globalization good for developing countries? In my opinion, globalization is good for developing countries.

Developing country needs capital to improve its economic development as we need money to improve our quality of life. Economic globalization gives developing countries this chance and increased their economic development pace obviously. Because of economic globalization, the increased capital flowing for developing countries helped them to have the money and promote economic development. Global Development Finance 2007 shows that worldwide FDI (foreign direct investment) inflows in developing countries reached 325 billion dollars in 2006s compared to only 170 billion dollars FDI in 1990s. At the same time, remittance flow in developing countries increased from 72.7 billion dollars to 199 billion dollars. The money was flowed from developed countries to developing countries undoubtedly helped developing countries to improve the economic development pace. From the World Bank statistic result, annual percentage growth rate of GDP in developing countries increased from 3.3% to 7.3% from 1990s to 2006s. GDP is growth domestic product, which is an important index to indicate economic development in a country. The GDP growth in developing countries showed us that developing countries have a big improvement on their economic growth. The most obvious evidence is the underweight children percentage in developing countries dropped from 28% in 1990 to 17% in 2012 (WHO website), which indicates the economic development has a vast

From WIPO website (World Intellectual Property Organization), which is an organization manages the patent from worldwide countries, the result showed that patents invented by developing countries only occupied little percentage of all the patents. Apparently, most of the patents were invented by developed countries. If developing countries want to achieve economic modernization and economic growth, they have to import these techniques. A successful example is Japan, which was a developing country before World War II, imported a lot of advanced techniques from developing countries, became a developed country since 1970. From 1970-1990, Japan imported techniques valued about 8150 billion Japanese Yen. After 1990, Japanese techniques were imported rather than the techniques were exported to other developing countries. The long term techniques import promoted domestic techniques improvement and economic growth. Economic globalization exactly gives developing countries the chance to easily import techniques from developed countries. Clothing industry used to be a handmade industry, after importing new techniques from developed countries, this industry begun to change its structure. It changed from handmade industry to handmade – mechanized production. The new imported