Effects Of Globalization In Colombia And Latin America

Effects of globalization in Colombia and Latin America

At the beginning of the 18th century, in the most advanced regions of Europe, the techniques applied in agriculture, manufactures and services were only improved versions of existing knowledge from the low middle ages.

The energy sources remained the hydraulic and wind force, applied in the grinding of the grains and the sawmills, the weavers and tanneries, the forges and forms of the blacksmiths, the pumps for the drain of the mines and the irrigation. Agriculture used accumulated knowledge about crop rotation, horse and horseshoe, molten iron plow, seed improvement and cattle raising. Hilar and iron wheel for the production of utensils and tools, were the cutting -edge techniques in manufactures and crafts. The most advanced products of the mechanical industry were the chlus of the channels, the mechanical watches and the artillery for the armies and the Navy.

In the field of finance, banks and commercial houses operated with credit instruments and cancellation of payments (credit letters, exchange letters) that had been developed by the Medici, Fugger, Strozzi and other large merchants and bankers from the Renaissance from the Renaissance. Especially due to Dutch leadership, shares by shares and markets for the placement of public papers and commercial companies, had considerable development.

Globalization in Colombia

Colombia had trouble participating in the globalization of the nineteenth century, one of the reasons was the civil wars between liberals that wanted to enter globalization and conservatives that intended to maintain their un contaminated Hispanic identity and to whom the wealth seemed a degrading value.

Faced with transport problems created by the complex topography and world market prices that made Colombian production (Ocampo), for Thomas Fischer proposed another more sensible hypothesis: “as responsible as the geographical difficulties and prices of the prices of the World Market was the continuous inability of Colombian elites to overcome these obstacles through investments to modernize transportation and improve the productivity of national companies. The inability of the oligarchies to coordinate their interests, and thus create favorable conditions for productive investments, was manifested above all in the frequent internal conflicts that affected the country."

The economic model implemented only until the twentieth century could Colombia insert in the world exporting coffee from quite conservative regions. ¨The political class was led by intellectuals formed in Latin and Greek, specialized in Spanish philology, which was an expression of its attachment to Hispanic inheritance and its anti-capitalist positions. Grammatical autism prevented this political class.

In that we look like continental China that, at the same time, had a political class of intellectuals formed in the classic Chinese that was unintelligible to the people. By contrast, as Patek Lal recounts, in Japan under the Mejí restoration, a bureaucracy that was more military who decided to absorb everything about western science and technologies, dedicating themselves to devouring them without having to give up their national identity. While Japan managed to industrialize and became a great world power, China and Colombia remained isolated and backward. China woke up recently and has decided on globalization, while we continue suspicious of it.

RISKS OF GLOBALIZATION

The risks of globalization have to do with technological changes that can displace the production of many countries, a process that we know widely from the nineteenth century with quina, indigo and that we experience with artificial fibers and synthetic sugar during the last century. To the extent that the rhythm of technological change increases risks to the existing plant based on ancient technology.

For the rest, industrialized countries impose restrictions on areas that should favor exports from developing countries. According to Ocampo, "world manufacturing markets are much freer, but agricultural markets are more distorted, labor migration is more controlled and intellectual property standards are more restrictive". (Ocampo) What follows is that the countries most open to technological change and those that develop design capacities are those that can best overcome the risk of technical change that increases the globalization process. Perhaps a more important risk is constituted by the instability of capital flows that both on their arrival in countries and on their way out they can wreak havoc.

Capital entry into the form of investments and credit, especially if it is excessive in relation to the capacity of the economy to absorb them, revalue the currency which leads to curb the dynamics of exports and promotes the shooting of imports, thus contributing to create a current account deficit that will not be easy to correct in a short time.

Foreign investments and external indebtedness finance an extension of productive capacity, reduce national interest rates, induce the over -indebtedness of companies and individuals, generate inflation in the value of the shares and the root property which must be corrected earlier than afternoon, generating the possibility of a financial crisis. The low interest rate leads to investments of all kinds, including the root estate, which appear as profitable at that time, but will cease to be when the value of the assets is deflated. Dolunts in dollars must face a debt service increased by the devaluation generated when capital begins to leave the country in question.

Globalization in Latin America

By the middle of the nineteenth century Latin America had an important position within the world economy. Among other data in the region, 40% of the investments of the main powers destined for the periphery were filed.

The migratory flow of Europeans to the countries of the periphery also occupied a significant percentage in Latin America. 50% of European migrations were towards this region. With world war conflicts, between 1914 and 1945 the world economy globalization process was interrupted. After wars or trade, migration or capital flow was again the same as before.

After 1945 there was a great impulse to globalization partly for the reconstruction of Europe and the post -war economic boom. This brought essential changes: the international labor division changed, technology had a great influence on the new definition and reorganization of work. Greater international liquidity and the integration of financial places pushed the short -term capital currents and the world financial system was born.

In these terms, Latin America did not know how to give adequate answers to the challenge of globalization. After 1945 our region continued with the tendencies of deglobalization of the time of the war. The region did not expand or modernize foreign trade, which essentially consisted of providing raw materials to the world market. International trade was changing due to technology. This led the region to lose importance in world trade. It went from 14% in 1945 to 5% in 1971.

conclusion

It could be said that globalization has some high scope, intensity, speed and repercussion, this is in political, economic and cultural flows and connections. However, the trajectory of the development of these processes remains uncertain, because they depend on both a specific conjunction of circumstances, as well as complex and extremely differentiated historical repercussions. In this aspect the current domain of neoliberal globalization is not as safe as many of its defenders or their most enthusiastic critics hint.

To fully understand contemporary globalization, the set of forces of globalization and the dynamics of its interaction must be explored. For example, the contemporary pattern of trade globalization implies the existence of political, legal and financial global infrastructures, while simultaneously it has financial, ecological, migratory, political, cultural and military consequences.

Bibliography

1. References https: // www.monographs.com/jobs14/Globalizac/Globalizac
2. https: // www.ECONOMIC ZONE.com/Globalization-Latin America
3. https: // eco.MDP.Edu.AR/CENDOCU/REPLACE/00231.Pdfile: /// c:/users/Vallejo