By Taha Abdel-Alim Taha Globalisation has not brought to developing nations, including Egypt, the range of benefits originally predicted by so many. In most countries of the South, average citizens still wait for the jobs, health and education schemes, political participation, and material comfort they had expected. Meanwhile, human development indices have deteriorated for most of the world population. Most nations remain incapable of fully benefiting from the opportunities economic globalisation offers. Moreover, many feel disempowered and alienated. As satellite television networks keep worldwide audiences informed on the conditions in other parts of the world, the less fortunate are getting understandably sour. The UN Globalisation Declaration notes that "while globalisation offers great opportunities, at present its benefits are very unevenly shared, while its costs are unevenly distributed." The declaration recognises that the funding of development in developing countries is inadequate, the ratio of people earning less than $1 per day is unacceptable, hunger is widespread, drinking water is still unavailable for much of the world's poor, many children are unable to join primary education, and epidemics such as AIDS and malaria continue to be widespread. The benefits of globalisation depend on how much an economy can contribute to the global scheme of production, which in turn depends on the technology and resources available. The ability of any nation to attract resources in the global market depends on the quality and value of its products and services. So far, most developing countries lag behind in technology and knowledge. With the exception of China and India, poverty is rising in many developing countries as a result of unemployment, low productivity, and the extensiveness of the unofficial economy. At a time when social security schemes are dwindling because of heightened competition, workers are in a weaker negotiating position than ever. Consequently, globalisation is being viewed with scepticism in many parts of the world, including Egypt. In Egypt, as elsewhere, there is a growing awareness of the risk of speculative short-term capital movements, which could destabilise the economy without adding to its productive capacity. As local governments raise interest rates in an effort to defend their currencies, the cost of investment rises, thus undermining development efforts. Economic globalisation has widened the gap between winners and losers. Most of the winners are the industrial societies, in addition to a dozen or so developing nations. The benefits of globalisation depend on how individuals, governments, and companies in a certain economy can utilise available opportunities on a global scale. So far, many developing nations such as Egypt have seen their share in global trade and investment stagnate or even dwindle. Economic policy in each country is crucial to its global fortunes. Developing nations have often complained that they are not allowed easy access to international markets, technology, or funding. During the Cold War, many developing nations received favourable treatment from their industrial allies for political reasons. This situation has changed radically over the past decade or so. Countries with inadequate science and research programmes have found it particularly hard to compete in a world of free trade. As a result, they suffer from unemployment, trade deficits, and poverty. There are objective reasons as to why globalisation works the way it does. But one mustn't forget that the global rules of the game have been set by the world's most powerful nations. The impact of globalisation on any individual country, however, depends on its domestic policies. Some countries have been better able than others to update their strategies and adapt to global changes. Inequity and marginalisation are often the outcomes of corruption, maladministration, excessive population growth, weakness of civil society, and civil war. There is another reason why globalisation has been hard on developing countries in general. Developing nations have failed to produce a common voice. This may be due to the diversity of their economic structures and needs. It has been difficult, for example, for oil-exporting nations to identify with the needs of countries exporting agricultural commodities. Likewise, countries exporting manufactured products see no reason why they need to coordinate with countries exporting labour and services. In order for countries of the South to influence global decision-making, they need a common agenda. * The writer is an expert at Al-Ahram Centre for Political and Strategic Studies
