Development Requires Change

Development requires change. Economic integration is an influential and ever-changing process that shifts economies from lower to higher level of development. Societies, along with economies have shifted toward integration for quite some time. This wave of economic integration has taken place since the beginning of the 1870’s, and has persisted to shape and change our developing world, as we know it. The development process of social and economic change within countries is crucial for societies to embrace extensive social and economic ethics and objectives they are trying to achieve. Today, there seems to be an odd detachment in debates about globalization in the north and the south. In the north, typically it is believed that economic integration is the leading cause of rising global inequality. In other words, the rich reap a substantial amount of benefits compared to the poor. Conversely, in the south, globalization is seen as a stepping-stone, providing excellent opportunities for developing countries and their people. “There is no way you can sustain economic growth without accessing a big and sustained market”. This quote is taken directly from a speech where the Ugandan President, Yoweri Meseveni, nails rich countries for their protectionism against poorer countries, urging for easier access into already established markets. The point the Ugandan president makes is that global economic integration, (foreign direct investment, immigration, increased foreign trade, large reductions in transportation costs and increased flow of technology and intellectual property) is a beneficial process for poorer and developing countries, capable of reaping positive results with the help of developed countries. This market facilitation allows for much easier access to free markets, so international economies begin on a level playing field.

As stated earlier, the integration of global markets has been ongoing for quite some time. This trend is nothing new or fascinating, as it has been happening for a while; however the way in which the poorer and developing countries are integrating with richer countries has certainly changed. Previous waves of global economic integration have been spurred by reductions in transportation costs, the exchange of intellectual property and partially due to government policy changes.

The first wave of globalization (1870-1914) saw the volume of trade (relative to world income) nearly double, growing from ten percent during in 1870 to eighteen percent just prior to the First World War. Additional capital flows and increased ownership of foreign assets were both signs associated with the first wave, as many Europeans owned assets in other countries. The largest and most noticeable factor in this wave was mass migration and the relocation of the world’s population. Nearly ten percent permanently decided that relocation would provide more benefit than risk. China and India were countries that