Globalization: How this is making resource rich nations poor?

Globalization – a word is seen as a tool for development, freedom, and prosperity.

Globalization – a word seen as a tool for development, freedom, and prosperity. But, does globalization really mean prosperity, modernization, and freedom for every nation? As, after so many years of globalization, there are still only 36 nations (G 7 + EU 15 + Other European countries) with a developed economy and the rest 160 are either developing or underdeveloped. Half of the globe’s population are living under extreme conditions with lack of food, water and shelter.

European imperialism and colonization of resource rich nations.

Going back in the history of human civilization, the situation was never like this. At least, people of earlier ages did not die due to of lack of food, water or home, unless or until there was an attack from outside or a famine. It started with the beginning of the 18th century when European with help of new found power brought all the nations and the regions under their control. The armies of elephants and swords were overpowered by the tanks and guns.

Nearly all of the countries came under the control of just 6 nations of Europe. From the 19th century to mid of 20th century almost the entire world was colonized by these countries. Britain alone had an empire which was the biggest empire by area in the entire history of mankind. Nearly all of the African nations were enslaved by Britain, France, Spain, Portugal, Belgium and the Netherlands. It was the time when slavery saw its worst form and colonization spread like an epidemic.

globalization colonialization

The rise of nationalism and the downfall of European empires

The exploitation of human and natural resources rose to such a level, a feeling of nationalism started to grow in each and every part of the globe from Argentina to Indonesia against the ruling European nations. The feeling played a pivotal role to free these nations. The nations which were thousands of miles away from Europe.

The last nation which got freedom from French colonization was Djibouti on 27 June 1977. By 1970s nearly all countries around the world had got its freedom from their ruling empires. This was the time when there was a sense of nationalism around the world and every nation was busy framing their constitution and laws. Elections were held, leaders were chosen, and governments were formed.

The downfall of European empires and rise of monetary funds

But a very basic question comes to my mind, why these Europeans left Asia and Africa around mid of 20th century? Even though there were no mass reprisals or resistance. As a matter of fact, Europeans were experiencing the same resistance for hundreds of years.

Let’s take an example of India and Pakistan. They were single territory ruled by the British for two hundred years. The sub-continent started resisting from the beginning of the 18th century. In fact, the first war i.e., The Battle of Plassey was fought between the Indian and British army in 1757, almost 200 years before India got independence. There were several battles and movements happened against the British in these 200 years. Britain was never in a mood to leave the region.

So what had happened around 1947 that Britain suddenly came to a conclusion that they are declaring India and Pakistan independent? Though there were almost no violent resistances during 1947 compared to earlier years. The same thing had happened to almost every nation in Africa. During the 1960s most of the African nation got its independence too. The answer is; these independent nations were to be enslaved again by International monetary funds and European banks this time through the use of globalization.

Independent nations and their enslavement by European banks

Post World War 2, there was a massive change going around the world. That change was that the colonized nations were becoming independent. Nations like Morocco in Africa to a country like Indonesia in the Asia Pacific were in the race for development, more security, better living standard, and industrialization.

Central banks were established; companies from Europe started investing in these countries and engaged in development and nation-building initiatives. The irony is; they were now building nations which they had destroyed through decades of enslavement. World Bank, International Monetary Fund, and World Trade Organization became the most influential organizations for loans and funds for these newly independent nations to rebuild themselves. ‘Rebuilt’ instead of the ‘build’ because these developing nations were already built and then Europe came and destroyed them and thus nation rebuilding was necessary.

Let’s take an example of India. When Akbar, a Mughal emperor died in 1605, India’s GDP was more than any nations on the earth, double than that of Britain at that time, so after independence, India needed to rebuild herself.

Globalization mainly helped the developed nations of the West

Globalization only helped already developed nations to get more resources for their development. Only their people’s condition became better and they became more prosperous. Name a single oil reserve in Europe, iron or aluminum deposit or a forest resource. The answer is none. Actually, they had already depleted their resources. So how come they are living in the best comforts of the planet? Thanks to globalization. It helped the Europe and America to siphon all the resources scattered around the globe to their land.

The Democratic Republic of Congo is a large country situated in the center of Africa has one of the densest forests on the earth, has each and every metal beneath its soil, water resource is immense, got rarest of the rare metals, but they are still one of the poorest nation driven by conflicts and wars. Children here die on a pandemic level, food and water shortage is gigantic.

Meanwhile, the multinational companies from the US and European countries are busy siphoning minerals and resources to themselves. This is the utter misuse of globalization and every poor nation has the same story.

Starvation and sufferings in countries of abundance resources.

There are starvation, internal conflicts and the war in these nations. Their resources are not being used for their own people but are shipped to already rich nations. People are dying in villages where there is bauxite. The children are starving where there is petroleum. The sick and old are living in rain without the roof where there are enough trees for timber. And, women are being killed where coal is mined. What type of globalization is this? Their own resources are a curse for them.

These marginalized people of the poor nations cannot become independent. It is no wonder Greece, Pakistan, Lebanon, and Yemen are the most indebted countries and the least stable economies. They now have to pay the debt to IMF, World Bank and other such banks from which they have been lending money to build their nation. They are not free to make their own economic decisions. Their people are burdened with more and more tax under the strict conditions of IMF and World Bank. Today every poor nation has loans from these Banks and financial organizations located in the US and Europe. These global Banks have blurred the difference between globalization and colonization.

3 thoughts on “Globalization: How this is making resource rich nations poor?

  1. Amjad says:

    I have little different opinion, it was the globalization that helped colonized regions to get railways, better roads, machinery, infrastructure, food and hell lot of things. It was still Nawabs and Rajas ruling the Indian Subcontinent when white people built Empire State Building. Central and southern Africa was hunting with stones when Europeans build factories there. Indochina region were using boats to fish when these people provided them city like ships to fish. Anything discovered or invented in Europe wouldn’t have reached to these nations if it was not for Globalization.

    1. tno says:

      Wonderful point made! Opinion in the article is not against globalization. But, the systematic misuse of globalization that handed guns and tanks in the hands of African who were happily hunting in the forest with stones.

  2. Richardgom says:

    Hello. And Bye.

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