And the negative effects have been observed in developed countries as well. According to IMF, only a relatively small number of countries are enjoying the benefits of globalization. Even the International Monetary Fund (IMF) has stated that the introduction of new technology and investment of foreign capital in the developing countries may have increased the level of inequality. The likes of Joseph Stiglitz and Ha-Joong Chan have claimed that globalization doesn’t reduce poverty but in fact preserves it.
It has received harsh criticism, in particular from those who oppose the free market economy. Related Post: Essay sample: Taoism vs Buddhism Negative effects of globalizationīut not everyone agrees with the positive impact of globalization. The United Nations has gone as far as to predict that this process may have the power to eliminate poverty in the 21st century. Globalization is considered to enrich the world both culturally and scientifically as well as benefit most people economically. Today, it has become a buzzword with mostly positive connotations such as the increase in the exchange of knowledge, trade, and capital around the globe that are driven by technological innovations such as shipping containers and more recently the internet.