What are the essential demerits of Globalization?

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Globalization has also been criticized on several grounds. Its opponents do not hesitate to indulge in violence. Workers, peasants, women, students and weaker sections of society have raised their voice against globalization. In their opinion, globalization has benefited the rich and harmed the poor. The harmful effects of globalization save been discussed here.

1 . Exploitation of Underdeveloped Countries:

MNCs, based in developed countries, purchase at lower rates the raw materials of backward countries, process them in their own countries and sell the manufactured goods with big profit in backward countries. The huge profit, they make, is taken back to developed, rich countries.

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Of course, the MNCs have opened branches in backward countries, but the local people who work there are paid much lower salary/wage. These companies hardly spend anything for local development. They victimise poor countries and their people by exploiting their poverty and helplessness.

2. Increase in Unemployment:

The MNCs employ machines to reduce the number of employees. Further, the governments of developing countries have started withdrawing investment from industries in the public sector. All this has led to huge unemployment in those countries. The larger the unemployment, the larger the poverty.

3. Widening of Rich-poor Gap:

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Globalization brings benefits to the rich who are small in number and keeps the vast majority of people in poverty and misery. It is a game of winners and losers. Those who are already rich succeed in taking advantage of privatisation while the poor and weak are doomed to suffer.

4. Harmful Effects of Consumerism:

Globalization produces consumerism. People being attracted by attractive goods and advertisements, want to buy these goods. They would not hesitate to earn money for this by unfair means. This has resulted in vast increase in corruption and other social evils.

5. Adverse Effects on Social Security and Social Welfare:

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Because of privatisation, governments in many developing countries are withdrawing from the sector of social welfare, and private companies have entered educations, health and other such fields related to development.

As a result of this, poor people are facing a lot of difficulties. They have no access to expensive educational institutions and hospitals. They cannot go for health insurance due to poverty. Social welfare has been in disarray because of globalization.

6. Harmful Effects on Small Industries and Small Business:

In the free economy, the big fish has got license to eat the small fish. Small-scale and cottage industries cannot grow in competition with big ones. Most of them have begun to close. Similarly, small business people cannot compete with big ones.

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7. Cultural Homogenization:

Globalization would lead to cultural homogenization. Each nation/society has its own distinct culture, but under globalization the cultures of developing countries are eroded and they are required to accept the values and norms of developed countries. In place of plurality of cultures, there will be a monoculture.

8. Hostile to Humanism:

Globalization would kill humanism. It aims at accelerating economic growth, and economic growth, according to its protagonists, can be quickly attained through privatisation. Pursuit of growth hardly respects human values. Human concerns like equality, justice are sacrificed without raising an eyebrow. Humanism thus falls a prey to globalization.

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9. Erosion of Democracy:

Globalization has led to the weakening, erosion and even destruction of democracy. Globalization has considerably increased the wealth and power of multinational corporations and they have tended to interfere with and control the economic policy and politics of developing countries.

As a result, many developing countries, one time or another, have helplessly watched the fall of their democratic governments and their replacement by one-party governments or military regimes willing to play to the tunes of multinationals and the countries to which they belong.

10. Gender-Insensitive:

Globalization is gender-insensitive. Women have suffered a lot under globalization. In the privatised economy, the interests and concerns of women, particularly of poor women, have been seriously ignored.

11. Destructive of Environment:

Globalization would destroy environment. In the name of economic development, environment is blindly destroyed. Nature is the gift of God. But it is destroyed for establishing big industries and dams.

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