Conventionally considered negative aspects of globalisation
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- The uncontrolled transfer of financial capital, several times exceeding the volume of tradable goods. That poses a risk of economic collapses, several of which have already occurred (Mexico, Southeast and East Asia, Brazil, Argentina).
- The inequity in access to overall social growth is increasing. Benefits go only to those who have better preconditions for growth, especially thanks to the more flexible attitude of their governments, which are capable of arranging conditions for the arrival of foreign investors (infrastructure development, better legislation in property protection, elimination of corruption, political stability, social coherence, etc.). Since various countries are at different levels, social Darwinism is asserting itself here: for instance, in lacking education in large segments of the society, debt etc. in developing countries; in the position of those who have lost their jobs in the developed countries.
- Even though the global economy is growing, 20 per cent of the world’s population, in its poorest parts (approx. 1.2 billion people) stay out of the consumption boom. The average African household, for instance, now consumes 20% less than it did 25 years ago. Whereas 20% of the population in higher-income countries make up 86% of the total private consumption expenditures, the same share of the population in the poorest countries represents a mere 1.3% of the expenditures.
- Unemployment in developed industrialised countries is either increasing or not decreasing. The cause is in the continuous technological innovation, thus increasing productivity, ever improving methods of production, trade and financial management, and last but not least, transfer of production to countries with various comparative advantages (such as flight ticket booking from the USA and other countries: the service is now provided to India).
- Globalisation weakens the role of the national state. States, especially small and medium and mainly the less developed ones, are losing their influence on the functioning of their economies, and have to rely ever more strongly on the arbitrary tastes of multinational corporations (MNCs) and on decisions made by international and global institutions (International Monetary Fund, World Bank, World Trade Organisation).
- Countries with less strict environment protection regulations and significant natural resources (wood, minerals, energy sources, etc.) are the target of activity of MNCs, which benefit from the comparative advantages of low environmental costs, low resource prices, etc., although the prices of many resources has been growing in the few recent years due to growing demand (especially so in China).
- The pressures of global markets, dictated by the practices of the MNCs, has led to the destruction of traditional structures in agricultural production in peripheral and semi-peripheral countries, replacing its diversity with monocultures or commercially exploitable crops. These changes, often too fast and radical, affect the social structures and cohesion in countries with traditional rural communities. The dependence of these countries on foreign markets is growing.
- The cultural invasion mediated by globalisation and its bearers in the area of information has resulted in growing cultural antagonisms. Media and information technologies have been creating a replacement technological environment within societies. Due to the synergetic effect of the globalising processes, rapid social change has taken place and national and cultural communities are subjected to globalisation culture and social shocks.