Acknowledgement

In successfully completing this project, many people have helped us and we would like to
thank all those who are related to this project.

Primarily, we would thank God for being able to complete this project with success. Then we
will thank our Principal Girmay Techane and Civics teacher, under whose guidance we
learned a lot about this project. His suggestions and directions have helped in the completion
of this project.

Finally, we would like to thank our parents and friends who have helped us with their
valuable suggestions and guidance and have been very helpful in various stages of project
completion.

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TABLE OF CONTENTS

Introduction………………………………………………………. 1

Economic and Trade Processes Field…………………………….. 2

Education and Health Systems…………………………………… 3

Culture Effects……………………………………………………. 4
In food and agriculture……………………………………………. 5
Conclusion………………………………………………………… 7
Introduction

Globalization is a process of global economic, political and cultural integration. It has made
the world become a small village; the borders have been broken down between countries.
''The history of globalization goes back to the second half of the twentieth century, the
development of transport and communication technology led to situation where national
borders appeared to be too limiting for economic activity'' (Economic Globalization in
Developing Countries, 2002). Globalization is playing an increasingly important role in the
developing countries. It can be seen that, globalization has certain advantages such as
economic processes, technological developments, political influences, health systems, social
and natural environment factors. It has a lot of benefit on our daily life. Globalization has
created a new opportunities for developing countries. Such as, Technology transfer hold out
promise, greater opportunities to access developed countries markets, growth and improved
productivity and living standards. However, it is not true that all effects of this phenomenon
are positive. Because, globalization has also brought up new challenges such as,
environmental deteriorations, instability in commercial and financial markets, increase
inequity across and within nations. This paper evaluates the positive and negative impact of
globalization on developing nations in the following proportions;

1- Economic and Trade Processes Field

2- Education and Health Systems

3- Culture Effects

4-In food and agriculture

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1- Economic and Trade Processes Field

Advantages;

Globalization helps developing countries to deal with rest of the world increase their
economic growth, solving the poverty problems in their country. In the past, developing
countries were not able to tap on the world economy due to trade barriers. They cannot share
the same economic growth that developed countries had. However, with globalization the
World Bank and International Management encourage developing countries to go through
market reforms and radical changes through large loans. Many developing nations began to
take steps to open their markets by removing tariffs and free up their economies. The
developed countries were able to invest in the developing nations, creating job opportunities
for the poor people. For example, rapid growth in India and China has caused world poverty
to decrease (blogspot.com.2009). It is clear to see that globalization has made the
relationships between developed countries and developing nations stronger, it made each
country depend on another country. According to Thirlwall (2003:13) " Developing countries
depend on developed countries for resource flows and technology, but developed countries
depend heavily on developing countries for raw materials, food and oil, and as markets for
industrial goods". One the most important advantages of globalization are goods and people
are transported easier and faster as a result free trade between countries has increased, and it
decreased the possibility of war between countries. Furthermore, the growth in the
communication between the individuals and companies in the world helped to raise free trade
between countries and this led to growth economy. However, globalization has many
economy and trade advantages in the developing countries,

Disadvantage;

we must also note the many disadvantages that globalization has created for the poor
countries. One reason globalization increases the inequality between the rich and poor, the
benefits globalization is not universal; the richer are getting rich and the poor are becoming

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poorer. Many developing countries do benefit from globalization but then again, many of
such nations do lag behind." In the past two decades, China and India have grown faster than
the already rich nations. However, countries like Africa still have the highest poverty rates, in
fact, the rural areas of China which do not tap on global markets also suffer greatly from such
high poverty (blogspot.com.2009). On the other hand, developed countries set up their
companies and industries to the developing nations to take advantages of low wages and this
causing pollution in countries with poor regulation of pollution. Furthermore, setting up
companies and factories in the developing nations by developed countries affect badly to the
economy of the developed countries and increase unemployment.

2- Education and Health Systems

Advantages;
Globalization contributed to develop the health and education systems in the developing
countries. We can clearly see that education has increased in recent years, because
globalization has a catalyst to the jobs that require higher skills set. This demand allowed
people to gain higher education. Health and education are basic objectives to improve any
nations, and there are strong relationships between economic growth and health and
education systems. Through growth in economic, living standards and life expectancy for the
developing nations certainly get better. With more fortunes poor nations are able to supply
good health care services and sanitation to their people. In addition, the government of
developing countries can provide more money for health and education to the poor, which led
to decrease the rates of illiteracy. This is seen in many developing countries whose illiteracy
rate fell down recently. It is truth that, living standards and life expectancy of developing
countries increase through economic gains from globalization. According to the World Bank
(2004) " With globalization, more than 85 percent of the world's population can expect to live
for at least sixty years and this is actually twice as long as the average life expectancy 100
years ago". In addition, globalization helped doctors and scientists to contribute to discover
many diseases, which spread by human, animals and birds, and it helped them to created
appropriate medicines to fight these deadly diseases. For example, HIV/ADIS, swine flu and
birds' flu whole world know about these diseases and they know how to avoid it. By
globalization, there are many international organizations, such as, Non-governmental
Organization (NGO), World Health Organization (WHO) and UNESCO, trying to eliminate

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illiteracy and deadly diseases in the world and save the life. In spite of these positive effects
of globalization to the education and health fields in the developing countries.

Disadvantage;

Globalization could have negative impacts also in these fields; globalization facilitates the
spread of new diseases in developing nations by travellers between countries. Due to
increased trade and travel, many diseases like HIV/ADIS, Swine Flu, Bird Flu and many
plant diseases, are facilitated across borders, from developed nations to the developing ones.
This influences badly to the living standards and life expectancy these countries. According
to the World Bank (2004) "The AIDS crisis has reduced life expectancy in some parts of
Africa to less than 33 years and delay in addressing the problems caused by economic".
Another drawback of globalization is, globalized competition has forced many minds skilled
workers where highly educated and qualified professionals, such as scientists, doctors,
engineers and IT specialists, migrate to developed countries to benefit from the higher wages
and greater lifestyle prospects for themselves and their children. This leads to decrease skills
labour in the developing countries.

3- Culture Effects

Advantages;
Globalization has many benefits and detriment to the culture in the developing countries.
Many developing countries cultures has been changed through globalization, and became
imitate others cultures such as, America and European countries. Before globalization it
would not have been possible to know about other countries and their cultures. Due to
important tools of globalization like television, radio, satellite and internet, it is possible
today to know what is happening in any countries such as, America, Japan and Australia.
Moreover, people worldwide can know each other better through globalization. For example,
it is easy to see more and more Hollywood stars shows the cultures different from America.
In addition, today we can see clearly a heavily effect that caused by globalization to the
young people in the different poor nations, it is very common to see teenagers wearing Nike
T-Shirts and Adidas footwear, playing Hip-Hop music, using Apple ipad and iphone and
eating at MacDonald, KFC and Domino's Pizza . It is look like you can only distinguish them
by their language.

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Disadvantage;

One the other hand, many developing countries are concerned about the rise of globalization
because it might lead to destroy their own culture, traditional, identity, customs and their
language. Many Arab countries such as Iraq, Syria, Lebanon and Jordan, as developing
countries have affected negatively in some areas, their cultures, Developing Country
Studies www.iiste.org customs and traditional have been changed. They wear and behave like
developed nations, a few people are wearing their traditional cloths that the used to.
Furthermore, globalization leads to disappearing of many words and expressions from local
language because many people use English and French words. In addition, great changes
have taken place in the family life, young people trying to leave their families and live alone
when they get 18 years old, and the extended family tends to become smaller than before.
4- In food and agriculture

Advantages;
An extensive study by FAO (FAO, 2001i) brings together numerous examples from many
developing countries that confirm the generally positive influence of TNCs on the agriculture
of these countries. But the FAO study also shows that policies play an important role in
promoting the benefits that TNCs or the local processors can provide for a country’s
agriculture. Most important, it shows that the underlying contracts between farmers and the
company are crucial for success or failure. Numerous examples demonstrate how well-
managed contract farming works as an effective tool to link the small-farm sector to sources
of extension, mechanization, seeds, fertilizer and credit, and to guaranteed and profitable
markets for produce. When efficiently organized and managed, contract farming reduces risk
and uncertainty for both parties. The principal benefits laid out in the study are the following.
Increased productivity. In northern India, Hindustan Lever, a food processor, issued
contracts to 400 farmers to grow hybrid tomatoes for processing. A study of the project
confirmed that production yields and farmers’ incomes increased as a result of the use of
hybrid seeds and the availability of an assured market. An analysis of the yields and incomes
of the contracted farmers compared with farmers who grew tomatoes for the open market
showed that yields of the farmers under contract were 64 percent higher than those outside
the project. In Sri Lanka, a flourishing export trade in gherkins has been built on contracts
between companies and more than 15 000 growers with plots of around 0.5 ha each. On a

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much larger scale, more than 200 000 farmers in Thailand grow sugar cane for the country's
46 mills under a government-sponsored system that assigns growers 70 percent and millers
30 percent of total net revenue (FAO, 2001i). Introduction of superior technologies. Small-
scale farmers are frequently reluctant to adopt new technologies because of the possible risks
and costs involved. In contract farming, private agribusiness will usually offer technology
more effectively than government agricultural extension services, because it has a direct
economic interest in improving farmers' production. Indeed, most of the larger corporations
prefer to provide their own extension. In Kenya, for example, the South Nyanza Sugar
Company (SONY) places strong emphasis on field extension services to its 1 800 contracted
farmers, at a ratio of one field officer to 65 sugar-cane growers. The extension staff’s prime
responsibilities are focused on the managerial skills required when new techniques are
introduced to SONY’s farmers. These include transplanting, spacing, fertilizer application,
cultivation and harvesting practices. Also, SONY promotes farmer training programmes and
organizes field days to demonstrate the latest sugar-cane production methods to farmers.

Disadvantage;

Risks and problems. In addition, the FAO study emphasizes that contract farming can be a
major tool for transferring skills and providing access to credit – features that are particularly
important for smallholders. But the study also underlines that certain risks and problems can
be associated with contract farming. Considerable problems can result if farmers perceive
that the company is unwilling to share any of the risk, even if it is partly responsible for the
losses. In Thailand, a company that contracted farmers to rear chickens charged a levy on
farmers' incomes in order to offset the possibility of a high chicken mortality rate. This was
much resented by the farmers, as they believed that the poor quality of the chicks supplied by
the company was one cause of the problem. Inefficient management can lead to
overproduction, and in some cases processors may be tempted to manipulate quality
standards in order to reduce purchases. One of the biggest risks for farmers is debt caused by
production problems, poor technical advice, significant changes in market conditions, or a
processor’s failure to honour contracts.

Conclusion

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In conclusion, as we can see, the process of globalization has involved all the countries
around the world. Developing countries such as India, China, Iraq, Syria, Lebanon, Jordan
and some Africa's countries, have been affected by globalization, and whether negatively or
positively, the economies of these countries have improved under the influence of
globalization. The size of direct foreign investment has increased and a lot of bad habits and
traditions erased, but also globalization has brought many drawbacks to these countries as
well. Many customs and cultures are disappeared such as traditions clothes and some
language and expressions have changed. In addition, the violence and drugs abuse are
increased and a lot of deadly diseases have spread under the influence of globalization.
However, although globalization has many disadvantages, we believe that globalization has
brought the developing countries many more benefits than the detriments. For example, we
can see there is more and a biggest opportunity for people in both developed countries and
developing countries to sell as many goods to as many people as right now, so we can say
this is the golden age for business, commerce and trade.

References

Kotilainen, M & Kaitila, V. (3/2002)."Economic Globalization in Developing Countries",

The journal of Economic in Developing Countries, pp 70.

Thirlwall. A. P. (2003), "Growth & Development with special reference to developing

economies", (7th ed). Palgrave Macmillan: New York.

Will globalization benefits or disadvantages (04/2009). [Online]

Available: http://thegptutor.blogspot.com (August25, 2011)

The World Bank, Development Program, 2004. [Online] Available:

http://www.worldbank.org/unite nations (August 28, 2011)

Kurdistan Government (25/7/2010) About Kurdistan. [Online] Available:

http://www.KRG.com /Article /03010800 (August 28 2011)