The International Monetary Fund

International Monetary Fund

Globalization refers to the increasing global relationships of culture, people and economic activities and even the technological relations which aids the globalization as well.

Aspects of globalization

Trade; Globalization of trade entails that human beings have greater access to a variety of goods and services across the international borders .for example, cars from Germany, software from India, clothing from China, and coffee from Colombia etc. Therefore a country which exports more primary commodities such as food and raw materials gain a lot compared to ones which export less.

Movement of people; Globalization has enabled people to move from one country to another to look for better paying jobs and better employment opportunities, making most countries borderless and movement non-restrictive as before. Due to this movement, people are able to gain different skills and knowledge from the foreign country and implement it in their home countries hence increase in productivity and quality products.

Spread of knowledge and technology; Globalization has resulted to the spread of knowledge across the world since the world has become one global village where people can move from one country to another to gain knowledge and more techniques at a very low cost then transfer it back to their home country hence improving the quality of their products.

Capital movement; Globalization has encouraged direct foreign investment where investors move from their home countries to invest in a foreign country directly. This is of great importance because FDI in services affects the host country's competitiveness by raising the productivity of capital and enabling the host country to attract new capital on favorable terms. It also creates services that can be used as strategic inputs in the traditional export sector to expand the volume of trade and to upgrade production through product and process innovation.

Asian newly industrialized economies have been performing well since 1970 as shown in the chart. Per Capita incomes have been moving quickly towards the higher levels in the industrial companies.

Western hemisphere has been performing poorly since 1971. The per Capita GDP was high in 1971 but remained constant up to 1981 when it started dropping as shown on the chart.

Middle East; The per Capita income in the Middle East has been dropping drastically since 1971 up to 1999

Africa; The per Capita GDP in Africa had a relative decline since 1971 to 1999 showing that it has lost its ground.

Asia had a constant per Capita GDP from 1971 to 1999 showing that it had no progress in its economy and within the same period, China had a slow progress from 1971 to 1999.

Measures.

The government should provide education and vocational trainings to the people to make sure that workers have the opportunity to acquire right skills in dynamic changing economies since things are changing day by day. This will help workers to stay updated.

The governments should also put in place well targeted social safety nets to assist people who are displaced from their jobs due to the competition from low wage economies which displaces workers from high wage jobs and decrease the demand for less skilled workers.

From the evidence of the applicability of the measures, I think they are sufficient to solve the problem curb the negative effects .of globalization on workers, these are the most important issues that are lacking and I am sure when put in place that problem will be solved. These are the factors that the IMF has not yet taken care of and formulated policies for their implementation.