ABSTRACT
Globalization has brought benefits to developing countries. A globalized market enables the international regulatory system to move toward greater liberalization and better regimes for world trade and cross-border business transactions. It also spreads ideas and values that strengthen a respect for the rule of law, and increases political and social rights. Despite the overall positive perceptions of globalization and its potential benefits, globalization has had three major adverse impacts on national development in developing countries. First, it affects national economic policies in terms of the forms of economic system and attitudes toward politics, law, and bureaucracy. Globalization requires a country to have a market-based economy, where the market has a significant influence over the government, and where the state has a limited ability to regulate the market. In order to increase capital accumulation, the government is prohibited from interfering with private economic activities, and is required to amend its policies that affect cross-border trade, such as price distortions in domestic commodity markets. Second, globalization creates a system that allows supranational organizations to impose more restrictions on national governments. International trade law brought about by the World Trade Organization (WTO), for example, is based on a process of exchange embodying minimum standards of treatment, which reduce national rights to regulate in the public interest. Third, globalization helps to create economic inequality in developing nations and perpetuate an elite and middle class who are in tune with and trapped by Western consumer culture and ideals.1
