Globalization is favoring the global north

Globalization is favoring the global north: Explanation

This article on ‘Do you think Globalization unduly favors the Nations from the global north?’ was written by an intern at Legal Upanishad.


The significance of international commerce and globalization cannot be overstated since no country can thrive in the current economic environment if it is to exist. If one nation needs raw resources, another requires capital products, and yet another requires inexpensive labour. As a result, global interactions are critical for maintaining demand-supply chain consistency and appropriate supply chain management. Furthermore, both advanced and emerging countries are affected by globalization.

Globalization benefits developed countries because it provides them with cheap and trained labour. Furthermore, raw material requirements have been met by international commerce between developed and emerging nations. Because of globalization, this is now achievable. But it can be seen that globalization is favoring developed countries in several ways over developing countries. [1]

What is globalization?

Globalization is conceptualized as a way that, based on global tactics, tries to grow commercial activities on a massive level. It was triggered by technological improvements, as well as economical, geopolitical, and ecological advancements, which facilitated communication systems.

Globalization aims to provide businesses with us with a competitive advantage by lowering operational costs and increasing the number of goods, resources, and customers available. This competitive advantage is acquired via resource diversity, development, and the emergence of new investment possibilities by expanding markets and gaining access to new raw materials. Diversification of assets is a marketing strategy that broadens the array of goods and services available to businesses.

Diversification improves organizations by reducing organizational health risks, extending interests across several sectors, capitalizing on market possibilities, and purchasing both lateral and vertically oriented businesses.

The IMF, the UN, and the WTO define industrialized or advanced regions as countries with high levels of economic growth and that meet definite socio-economic status requirements primarily on socioeconomic hypotheses, such as gross domestic product (GDP), industrial growth, and HDI (WTO). Norway, Ireland, Switzerland, Iceland, Hong Kong (China), Germany, Sweden, Australia, the Netherlands, and Denmark are the top 10 industrialized nations according to these classifications.[2]

What are the global north and the global south?

About 149 million km2 of the Planet’s 510 million km2 total land area is made up of land. The northern hemisphere accounts for 67 percent of this territory, and 90 percent of the world’s population is likewise located here. For these causes, from the perspective of the planet’s population, economics, and geopolitical, the border between the North and the South is located much more to the north, along a dividing line that roughly parallels the 30th northern latitude parallel. The two human-geographic zones more closely relate to the mental standard or the idea that humans are a part of the world (Neguţ, 2011, p. 159).

The vast empires and highly developed technological and economic nations that have ruled the globe for the previous 500 years, shaping its history and playing home to all the important events, are located on the surface of the North. It spans America, Europe, Asia Minor, the former Soviet Union, and East Asia. The South is a location of immigration for people and cultures in the North, a source of raw materials for industrialized nations, and it is synonymous with economic uncertainty, destitution, and imperialism. The South comprises Oceania, Africa, Southwest, South, and South Asia, as well as Latin America and the Caribbean.

Throughout antiquity, there has been a constant rivalry between the South and the North. The South, where the majority of history was recorded, predominated the civilized countries, kingdoms, culture, large cities, commerce, and technical advancement until 1500. Following this time, the North became dominant, with its kingdoms and culture engulfing the whole South. In essence, the South was thought of as the land of the North between the years 1500 and 1950, having lost all of its empires, kingdoms, cultures, and populations.[3]

Globalization is favoring the global north
Globalization is favoring the global north

Globalization is favoring the global north

There are numerous instances of favoring of global north through the process of globalization. Some of them are as follows:

  • Globalization as an Order from the Rich, or Developed Countries:

Some opponents of globalization even go so far as to refer to it as a coerced decision instead of a choice that the people of the world made democratically. Utilizing business tactics and methodologies, the process has been guided by corporate objectives. Governments have aided through small-scale policy adjustments as well as bigger acts that were frequently performed covertly, without presidential debates or deliberations on the direction that the society was being pushed by the overall process of globalization.

Policies were the target of extensive propaganda operations by the involved business media in the event of several significant measures promoting the globalization process, such as the adoption of the North American Free Trade Agreement (NAFTA) or entering the European Monetary Union (EMU). This led to the formation of various organizations which are mostly led by developed countries like the UK, USA, and the rest of Europe which leads to the abuse of the developing countries i.e. global south.

  • Unequal Benefit Distribution:

This undemocratic system, which was disguised as democratic, was at odds with how the expenses and advantages of globalization have been distributed. The reality is that globalization has been used as a weapon to further the interest of the privileged few i.e. developed nations. Other unplanned effects of globalization, such as the restraint of wage costs and the dwindling of the welfare system, which permitted the corporate minority to reestablish control over the government and decrease its capabilities to fulfill the needs of the vast majority, have all made a significant contribution to the democracy’s downward trajectory.

  • Source of Repeated Economic Crises:

Since the Third World debt crisis that began in the 1980s through the Mexican collapse of 1994–95 and the South East Asian economic collapse of the 1990s, economic collapse has grown increasingly severe and worrisome for the new global order. The gap between the strength of uncontrolled financial forces and that of states and regulatory agencies has grown as a result of growing privatization and deregulation, which has also increased the likelihood of a worldwide financial collapse which has affected developing countries a lot.

  • Cheap labour availability:

Globalization has also allowed developed countries to make use of the cheap labour available in developing countries and benefit themselves while harassing the population of a developing country. This can be seen in Bangladesh where most of the jeans factories are situated in developed countries only because cheap labour is available.

  • Increased Protectionism and Neocolonialism:

The corporate elite of many governments has all been working to promote international accords and World Bank and IMF policy moves that will strengthen their capacity to influence electoral governance to act in their favor and defend their wealth.

Globalization has given rise to a new kind of MNC protectionism instead of the rich and developed countries’ conventional protection, which is doubly harmful to the economy of all nations, especially those in the Third World.


In conclusion, every nation around the globe has been impacted by the globalization process. Globalization has an impact on developing nations like India, Lebanon, China, Syria, Iraq, Jordan, and several African nations. Whether this impact is favourable or harmful, it has affected the economy of these nations.

Globalization has generally been criticized for making the wealthy richer i.e. developed nations while leaving the non-rich i.e. developing nations worse. “It’s great for executives, proprietors, and shareholders, but it’s horrible for the workforce and the environment.”

Even though the goal of globalization is to eliminate all trade barriers there are still many of them. For instance, VATs on imports are levied in 161 nations and discrimination can be seen because of globalization where it can be seen favouring developed countries like the USA.[4]