An important trend occurring in the world economy is the process of globalization. Globalization is the progressive integration between national economies and the breaking down of barriers between trade and financial flows around the world, which will eventually lead to the emergence of a single world market. Globalization has affected many different nations in different ways, depending on their degree of development and extent to which they are open to the flows of the world economy. China, which is one of the developing countries, is said to be the next economic super power. Many guru economists such as Lawrence Summers predict that in the opening decades of the 21st century, china will match the US and Japanese economies. China currently ranks seventh strongest economy on a global scale. China's economic success has not been confined to raw economic growth, especially with a huge trade surplus of over 40 billion according to world guide from 1998.
China has an annual per capita Gross Domestic Product (GDP) of $750. Today China would have to be the most alluring country. Globalisation has many impacts on developing countries; these include growth, employment, poverty, women and finance. These will be assessed below.
It is striking that global GDP growth has been slower than in previous decades since 1990, the period in which globalization has been most pronounced. This contrasts with predictions of the growth-enhancing impact of globalization.
Growth is unevenly distributed among developing countries in the Asia - pacific region. In terms of per capita income growth, only 16 developing countries grew at more than 3 per cent per annum between 1985 and 2000. Some 55 developing countries grew at less than 2 per cent per annum, including 23 that suffered negative growth.
The income gap between the richest and poorest countries increased significantly. This...