English - Human Development Reports - United Nations ...

Globalization and Human DevelopmentIf free movement oflabor were to occurit would open upmarkets for the laborforces of developingcountries.● Enhanced Labor Mobility: Despite theresistance of some countries to the freemovement of labor, this is consideredpart of the economic liberalizationpackage accompanying globalization. Iffree movement of labor were to occur -and it has not, so far - it would open upmarkets for the labor forces of developingcountries, especially those that sufferfrom overpopulation and tight labormarket conditions. This would improvejob opportunities and favorably impacton the Balance of Payment (BOP)through remittances.ThreatsDespite these potential benefits, globalizationinvolves threats to some countries andsome population groups that are unable tobenefit from available opportunities andadopt competitiveness enhancingpolicies. The most important threats are:◗ Inequitable Income Distribution: Theevolution of the free market systemwithin capitalist countries has led to aninequitable pattern of income distributionamong different population groupswithin the same country, thus requiringpublic intervention to redistributeincome to the advantage of the poor. Ifthe same system is applied at the globallevel, it is expected to yield similarresults between rich and poorcountries: the rich would get richer andthe poor would get poorer. In theabsence of a universal financialmechanism to correct this imbalance,inequity may be permanent, and maythreaten world stability.◗ Greater Economic Fluctuations:Removal of currency controls and freecapital movements due to theliberalization of capital transactions inthe balance of payments, could lead togreater fluctuations in the worldeconomy. Perhaps the experiences ofMexico (1994), the former SovietUnion (1995) and South East Asia(1997) are the most salient examples ofthis. Moreover, as the contagionrapidly spreads, the whole world,especially developing economies, couldbe exposed to destructive economicfluctuations.◗ Collapse of National Industries:Developing countries, such as Egypt,fear that the open markets andenhanced competition resulting fromglobalization would destroy localindustries due to an inability tocompete with high productivity industriesin the industrial countries. Should thishappen, it would lead to reduced jobopportunities, increased unemploymentand increasing poverty.◗ Cultural Identity: Countries that havecultures different from the West areconcerned that globalization woulderase the main features of theirdistinctive cultures. This is a real threatthat can only be stopped througheducation and a belief in the authenticityof different civilizations and differentsocieties. This does not mean that newand positive aspects of globalizationshould not be adopted. Rather,societies should demonstrate therelevance and benefits of theircivilizations, many of which carry aneeded spiritual dimension. Culturalinterdependence could become mutual,instead of being unidirectional (SeeBox 1.1).12 -Egypt Human Development Report 2000/2001