Pacific Island Globalization

915 Words4 Pages
In 1970 the Pacific island countries experienced the second phase of globalization with profound impacts. The question one might ask is where the pressure is coming from to follow the globalization agenda. The answer is that all the significant sources of advice for economic policy- makers in the Pacific islands now say the same thing. They are aid donors, international financial institutions, banks and investors and they agree that salvation for the economies of the region lies in opening themselves up to international forces and becoming truly competitive. This paper will discuss the benefits of Globalization in the Pacific Island countries, its adverse effects in terms of capital flows and the necessary actions that should be taken to solve…show more content…
Its authors predicted that unless islands governments changed course, their people would face a nightmare of rising populations, falling living standards, decaying schools, urban squalor, and unemployment. Therefore in order to be competitive in a globalizing economy Pacific island countries have reduced their public sectors, cut tariffs, encourage private enterprise, and allow maximum freedom to foreign investors. Globalization has taken place and has placed some benefits to the Pacific nations such as improving the living standard of the people. We can see that in the past we don’t have access to computers, mobile phones, and the internet. As technology advances the living standard of the people also improves. Globalization has also improved the level of education. As nations merge into a borderless world, people are also moving around…show more content…
Massive amounts of money are being invested and withdrawn from investment across national borders as global financial markets decide where capital should and should not go. However after World War II, the Bretton Woods system of rules for the operation of the global economy was developed following the Great Depression. The essence of this has been to liberalize trade further and to deregulate capital movements altogether. This results in unstable and volatile global economy which countries that fall out of favor with the international financial markets can be plunged into sudden currency devaluations, widespread bankruptcy, and unemployment and as happening in Indonesia, social unrest, religious hatred and violence. The Asia-Pacific region has long been prone to volatile capital flows that have posed a challenge for authorities to cope with and occasionally led to payment difficulties dragging down exchange rates and spilling over to the real economy. More money flowing into our countries more corruption activities like for example In PNG there are most cases related to misappropriation of public funds which again lead to the inequality in distribution of funds and thus increase poverty in the nation. Some prosper in terms of wealth and power while others are poor. The dependencies, corruption and other governance failures, along with people’s lack of rights in the face of traditional local power structures as well as the

More about Pacific Island Globalization

Open Document