, but below mark trade performance specially in area of value added exports has impeded the global financial integration. Reason being the fact that economic impact of structural reforms failed to give desired affirmative economic environment. This in turn is outcome of the fact that these reforms have not penetrated deep down to address the structural rigidities both in economic and social life of the country and resultantly all efforts towards bringing in sustainable economic reforms could not bring a significant improvement in GDP growth rate and furbishing exports volume of the country and rather eroded internal economy of the country.
However with the announcement of recent federal budget one can hope for a congenial investment climate, which will prompt both foreign and indigenous capital to flow towards projects manufacturing value added products both in large scale and medium size industries of rural and urban sectors alike and will improve Country’s GDP growth rate and exports volume substantially.
The globalization process embracing latest technologies in all sectors of economy has increased unemployment in developing countries as demand for low skilled labor has declined. The international demand for workers with specialized skills has increased. Further growing advocacy for protectionism on the part of super powers and economically rich countries particularly in context of safeguarding the interest of their work force and with inclination towards ‘nationalism’ as is apparent from US President Donald Trump’s speeches and thereafter conveying the message on pretext of restrictions on inflow of visitors/migrants from certain countries where terrorist activities are common. He assures their labor class that their rights against migrant labor class would be protected.
Similar is the case of Brexit where element of nationalism prevails. Separation from European Union is a blow to concept of globalization. An eminent economist of Princeton university Dani Roderick who from the very start of the globalization process had doubts about it’s success in view of expected growing income inequalities among nations and also within countries particularly developing countries due to inflow of new technologies in all processes of production, leading to acute unemployment problem. His views are depicted in the relevant paragraph reproduced. “Brexit vote and the election of Donald Trump set the stage for this powerful an provocative sequel exploiting the survival of democracy and globalization in the face of rising nationalism”. He advocates for giving space to developing economies for augmenting industrial development and economically rich countries to protect their workers against unfair trade practices.
In a scenario of global financial crisis and emerging trends with rich economies to get out of this crisis International Monetary Fund (IMF) have also expressed their apprehension in economic outlook report of 2007 regarding expected rise in inequality level due to introduction of new technologies and investment of foreign capital in developing countries for which skilled workforce is a prerequisite. Other economically rich nations also have some reservations regarding success of global integration program as it’s philosophy allows employers to shift their projects to low and middle income developing countries due to availability of cheap labor, which is unjust for their own labor force.
To conclude, for keeping globalization on track long term remedies are required particularly regarding capacity building of work force. For that developing countries need to make heavy allocations for education and health care for speedy development of human capital ensuring effective use of new technologies now becoming integral part of all economic activities.