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Globalization

In: Social Issues

Submitted By kothakoli2
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Thoughts on Economics
Vol. 18, No. 01

Impact and Consequences of Globalization in

Bangladesh Insurance Industry

K.M. Mortuza Ali*

Globalization means the breakdown of boundaries. Every country rich or poor would have access to the markets of other country. As a matter of right, the rich will have access to the markets of the poor and the poor countries would have access to the markets of the rich. This sounds quite fair as it will be a borderless world. Everyone will be equal citizens of the globe. But what is apprehended by many that this might lead to loss of the independence of the poor countries. This is simply because the poor may lose their economic independence under globalization. If there is only one global entity, there can not be nations and or can not be independence of nations.

The entrepreneurs of developing countries can not compete successfully with the market giants of the west. The effect of economic globalization would be the demise of the small companies of the developing poor countries. Large multinational companies in the developed countries will take over everything. It is also apprehended that a globalized world is going to belong to the powerful dominant countries. They will impose their will on the rest, who will be no better off than when they were colonies of the rich. We are afraid, that in the name of globalization, the process of re-colonization has begun.

Challenges and Opportunities

We are being repeatedly told by the proponents of globalization that the poor countries like Bangladesh will be immensely benefited because of the free flow of capital. It is true that for many developing countries, capital inflows have brought about unprecedented economic growth. But it is also true that capital can flow out and when it does, these countries can be bankrupted.

We observe

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