One critical aspect of globalization is to strengthen the integration with other countries, by trading which could eventually lead to distribution of wealth throughout these countries. Globalization also includes how the local people view different things, to include, culture, religion and the improvement in technology. Countries would encounter globalizing pressures since, the economic, political and cultural development are at different levels among countries. The third world countries are less developed than many other countries and their economies can be said to be isolated from the world economy. (Arif, 2008).
Globalization makes the world a single place, which means it is universal. With the advancement in technology, it has brought the world to be a connected place with the introduction of the internet, telephones which have made created easy communication within the world. Therefore we can see an increase in modernity. (author unknown, n.d)
Globalization can also be termed as a process which can help in liberization of a country by the removal of government restrictions, which will result in more investment within countries by having an open economy.
Although globalization can eventually develop the third world countries, it can also cause the social barriers, which can eventually destroy our cultural heritage. As Friedman stated in his book, the world is too connected because of globalization and that if one link in the chain is loosened the entire interlink will be affected. He also outlined how the internet is very intrusive and that individuals do not have any privacy anymore. These are some of the backlashes of globalization. He also stated that it will be difficult for some countries to make the transition economically, politically and culturally. (Friedman, 2000, pg. 427).
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Globalization has its advantages and disadvantages, however, it can be used as the avenue to develop third world countries, because through globalization, every country can benefit once the proper operation systems are put in place. Third world countries would therefore have to focus on the more exportation of goods and services as opposed the importation. In the Caribbean, emphasis should be placed on the tourism, agriculture and manufacturing industries in order to compete on a global scale. Bananas and Sugar are two essential foreign exchange earners for the Caribbean. However, these two crops have been faced with similar challenges. There has been no diversification in these crops and also the inadequate technological systems in place. The cost of producing banana and sugar and was very high and they were unable to meet the standard of the World Trade Organization. The absence of economies of scale is another issue that has affected the sugar cane and banana industry in the Caribbean. (Balah Ahmed, 2001).
In Jamaica, tourism is another essential area which can help the country to compete on the global scale. In the movie Jamaica For Sale, we have seen how Jamaica, the one of the most indebted Caribbean Islands has tried to boost its tourism industry. While the agricultural industry has failed in some ways, the Jamaica is trying to boost the tourism sector in order to compete on a global market. There are major tourism developments in the pipeline for Jamaica.
For example, the development of hotel industries, the building of another international airport and the building of more luxury resorts. While Jamaica is trying to develop a sustainable tourism sector, the people of Jamaica are being paid low wages and they also left out of the decision making process. (Ian Boxhill, n.d)
Barbados has sought to develop in their tourism industry by making their tourists attraction pleasing to the international market. They have developed an approach in enhancing their tourism sector by sensitizing the local public. The government of Barbados recognized that because of the resources Barbados has, tourism was a main area for developing, therefore, they placed a great deal of emphasis on the branding of this product, which generated capital for the country. They saw the need to improve on quality and efficiency in the tourism sector. Barbados divided the tourism industry into sectors; namely, The Barbados Tourism Product Development and the Barbados Tourism Marketing Company. By doing this, they were able to better compete in the tourism industry and maintain international standards. They saw the need to widen the tourism industry in order for sustainable development. (Research and Planning Unit, 2009).
Other Caribbean Islands have seen the need to develop its industries like Trinidad, Grenada and the other islands. The Caribbean’s current position in the global economy is not at its best. Firstly, it is imperative that the Caribbean regions realize the need for integration in order to be a benefactor in the global world. The need for integration is necessary. Thus far, the Caribbean has tried to implement the Caribbean Single Market and Economy, which is part of the integration process which allows for free movement of people including university graduates and musicians, trading of goods between islands, the removal of tariffs. Research and Development was another area that was undeveloped in the sugar and banana industry. (Tony Fraser, 2004).
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The concept of the golden straight jacket needs to be implemented in the Caribbean territory in order for these islands to engage in sustainable development. With regards to the golden straight jacket, Caribbean countries need to recognize the position that they are in and implement different strategies to suit the needs of the country. For instance, Trinidad, Guyana, Barbados and Jamaica are more developed in comparison with the OECS islands. Therefore, a strategy that may work for Trinidad may not necessarily work for Grenada. Each country needs to adopt innovative ways to compete on the global market by developing competitive strategies which in turn will result in competitive advantage. As Friedman stated, “When a country wears the golden straight jacket, the country’s economy will grow and their politics will shrink.” (Friedman, 2000, pg. 106).
The Caribbean should adhere the golden straight jacket rule by making privatizing and sustaining the private sector which will fuel economic growth. The rate of inflation is relatively high in the Caribbean and prices tend to fluctuate. In addition many of the Caribbean Islands have implemented the Value Added Tax (VAT). In terms of corruption the Caribbean has to eliminate the corruption with the governments. They need to get rid of monopolies. For example, throughout the Caribbean, the utlility companies are all monopolies, with the exception the telephone companies in some islands. These factors make up a section part of the golden straight jacket rules, which if followed, the Caribbean can see itself on the global market and by further extension have sustainable development. The Caribbean has a long way to go in implementing the rules of the straight jacket. Although this is only a theory, but it is a theory that can assist the Caribbean in competing on the global market. The Caribbean needs to use its natural resources.
In order for the Caribbean to move from developing to emerging market status, it is imperative that these islands come together as one to compete in the global market. One of the ways they can do this is by having one currency. One currency allows countries to grow economically. One currency allows for more transparecny cost, less uncertainty and less transaction cost. Intially, this can result in an opportunity cost, however, in the long term it will be benefical to the entire Caribbean. In addition to the single currency, the Caribbean has to be more creative. We are a creative people, but we need more people to be creative. The Caribbean is developed in terms of its historical and cultural forms, however, in order to develop economically into emerging markets, education is a key factor. “Education is strongly correlated with economic development.” (Cavusgil , Knight and Riesenberger, 2008, pg. 257)
Each Caribbean nation needs to focus on one main area of export, as opposed to all the Caribbean islands focusing on the same area of exporting of goods and services. For example, Barbados is an ideal tourism industry. Therefore Barbados should focus on tourism. Jamaica and Trinidad are in the manufacturing industry, therefore they should place emphasis on developing those areas. Guyana has a lot of land, therefore they can place emphasis on developing in that area. These are just a few exmaples to show how the Caribbean is diversified in different areas and if they pool their resources and focus on different areas, they can eventually become more competitive and move from third world countries to emerging markets.
Globalization is therefore a springboard to generating revenue for a country and the Caribbean is an exception to this benefit. Although, there have been backlashes from globalization it can still foster development and expand the trading across borders expecially on an international level. Third world countries need to adopt some of the practices of the developed countries and they will eventually emerge into globalized markets.
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