external influence in the making of development ... - FES Ethiopia

WIDER (2004), total official development assistance (ODA) to sub-Saharan Africa
trended downward from the early 1990s. It fell substantially in the mid-199s, falling
from $16.9 billion in 1994 to 11.6 billion in 1999 and the region has received $1.4 billion
less of aid during 1993 to 2002 than during 1983 to 1992.
Globalization
In the previous era, two superpowers competed politically, economically, militarily, and
ideologically across a worldwide landscape. A new aspect of global trend after the end of
the Cold War period is the globalization process which initially promised peaceful
relationships based on market economics, free trade, instantaneous telecommunications,
and the liberal movement of financial capital across national borders.
Globalisation means that capital and jobs; pollution, crime and terrorism;
people, ideas and values, all move increasingly across national borders in
response to changing patterns of incentives and disincentives. What happens
in one country does have an influence over what happens in another, and the
aggregate effect of national actions may make all worse off in the long term -
a classic example being the progressive degradation of the "global
commons" as a result of unsustainable use of natural resources(Source to be
indicated).
Hence, the globalization process has also a non-economic side that is reflected in terms of
extra-territorial pollution, extravagant culture, exodus of talented people, trade in drugs,
criminal and other security threats, and new diseases. Some of these, of course, will have
eventual economic implications in the long-term. The implications of globalization are
many including fierce competition, increased inequality, erosion of national sovereign
power, and cultural invasion. The process is likely, therefore, to put additional pressure
on national policy making process.
Globalisation is good news for economies, firms and workers who are internationally
competitive, but not so good news for those who fall behind; as in any liberalised market,
the disciplines imposed on poor performers are severe. Given the extreme differences
which exist between rich and poor countries in the "starting conditions" which have such
an influence over competitiveness, globalisation is likely to exacerbate existing global
inequalities unless conscious action is taken to address these differences. Efforts to
"catch up" with industrialised countries in terms of competitiveness may also result in
falling labour and environmental standards as firms cut costs, thereby resulting in
increased environmental degradation, social exclusion, and economic exploitation in
industrialising countries (source to be indicated).
What is most unacceptable is the double standard and rigged rules that are punitively
targeted at developing countries. Countries like Ethiopia are not only isolated and
marginalized but are also unfairly targeted to loose and further slide down to
underdevelopment. For example, rich countries spend a billion dollars a day to heavily
protect their own markets so that exports from the poorest countries cannot come in. In
addition, these countries charge high import duties so goods from abroad are much more
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