Further Globalization
I am so confused by whether globalization is good or bad. I am getting the feeling that globalization is like communism - in theory it is good but in reality it has a lot of bad side effects. Ideally it should be removing borders, thus allowing knowledge and richs to freely flow about. Something like thermodynamics: money will flow where it is most needed, resulting in a uniform money through out. But in reality it can drain the resources of poorer nations, resulting in extreme contrasts. Ofcourse we can argue that it has been globalization and the out sourceing which has allowed india to gain riches and become its own powerhouse. But it seems to me the Indias of the world are few and far between. More often than not, resources of a country are drained. Look at Iran for example. How much of a knowledge drain has Iran undergone? Unlike India, people do not return to Iran once they become established and wealthy. Money does not really get sent back to iran. So in the right circumstances, globalization can work. But third world nations generally have so many political and cultural problems that the right circumstances are rare. What do you think?
The other thing was the comment of Brinda about why middle east countries are poor. Basically, Juan is correct. They have raw resources but they don't have the technology to develop these raw materials. So they sell them cheaply to other countries and buy back the refined material at a much higher cost. This was what was happening to the petrol industry in iran during the shah regime. Iran was selling raw petrol to england (i think) and buyin back refined petrol at a loss and this was what Iran had!! Jeerjeerak, do you know much more about this?