GLOBALIZATION: MEANING AND ECONOMIC CHALLENGES FOR DEVELOPING NATIONS

Mohamed Aslam Haneef

Abstract

This article discusses the meaning and scope of globalization and sees it as a multi-dimensional process that affects not only the economic and political spheres, but one that also has social and cultural implications as well. Development programs of economically developing nations must therefore understand the benefits and costs in this context. The economic dimensions of globalization are then discussed in greater detail under five sub-headings namely international trade, foreign direct investment, international financial liberalization, intellectual property rights and international economic governance. Implications in these five dimensions are highlighted and some suggestions are put forward to overcome them. The paper concludes that developing nations should approach the challenge of globalization from a critical dialogue perspective, being self-evaluative and willing to learn from others, but based on frameworks that are developed from within our own traditions.

Keywords: globalization, economic dimension, Islamic perspective, critical dialogue.