Abstract:
This study investigates and explores meaning and process of globalization, the implications of
globalization on developing countries, its positive and negative effects on the economical
development and the role of international financial institution for the promotion of globalization.
The study also highlights globalization influence on the economy of Pakistan.
To gather the needed data, number of articles, economic survey, World Bank survey, economic
books was analyzed. The important points from these sources were also quoted in this study as
reference to the context. In order to enhance this study an interview was also conducted with an
honorable and admirable dean of Institute of Business Administration (IBA), Dr Anwar Ali Shah
G. Syed, who adds a lot more effectiveness to this study.
Globalization is a phenomenon which includes economic, social, cultural, political almost all
aspects of human life. It can be exceedingly empowering and coercive. As an extreme form,
economic globalization means that economic life is totally determined in a worldwide context. It
is actually the rapid growth of linkages and interconnections between nations and social
communities that make up the present world system.
Globalization has many aspects e.g. positive, innovative and dynamic; all of these are associated
to the increased access to capital, improved market access, and increased access to technology
and information which have led to greater income and employment opportunities. The
liberalization of trade and integration of financial markets contributed the Economic
globalization taken place so rapidly. At the same time as the whole world has benefited from
globalization, there are negative and marginalizing aspects of globalization. These are what have
directed to a criticism, as it is reflected by civil society act and by increasing expressions of
dissatisfaction at the governmental level.
It has also been examined that currently, most developing countries want to profit from
globalization in the form of increased foreign trade, foreign direct investment, foreign aid and
international borrowing. On the other hand globalization also raises problems in these countries.
The problems are often related to the consequent fast structural changes in the economies. Other
problems are widening disparity in incomes, decreased employment, financial volatility,
unbalanced distribution of profit, more human insecurity and many others.
In Pakistan, impact of globalization is on almost every sector. The economic performance of
Pakistan since integration with the global economy can be characterized by an increase in GDP
growth rates, decline in import duties, and an increase in FDI. On the other hand Pakistan's
economy is also been affected because of many factors as a result of global economy like
unemployment, corrupted government personnel, unequal distribution of wealth and aggregation
of wealth within few hands.
This research hopes to provide readers an overview of globalization and the influence over the
developing countries and Pakistan. I start, in the first section, by attempting to identify the
concept of globalization and providing of description of what it is about. In the nest section, I
enlighten the role of international financial institutions in promoting globalization. Then in the
third section, I provided literature review that supports my research work exclusively.
Subsequently, I presented the characteristics of less developed or developing countries along
with the impact of global economy over them. Finally I discussed all the possible consequences
on Pakistan followed by conclusion and recommendations.