and export markets for their heavy industrial and defense goods. Besides that advancement in information technology facilitates free trade between developed and developing countries. However from the very beginning some apprehensions were there on the part of developing economies. It was assumed that globalization or global economic integration would help reducing poverty from developing economies particularly South East Asia and African countries, but instead despite MDGs agenda followed by these countries vigorously, the poverty did not reduce from majority of even middle income developing countries and instead inequality of incomes has gained grounds. China and India have been benefited, but at the same time majority of African and South East Asian countries are in a deplorable status of their economies.
No doubt corporations and Multinational companies have set up their manufacturing units in developing countries, which in a way adversely impacts economic growth process of these countries. These countries in quest for getting foreign direct investment have offered incentive by giving investors permission to remit their earnings to their countries, which in fact is draining out their forex reserves.
It is evident in case of Pakistan where foreign investors are free to remit their profits to the countries of their origin instead of ploughing back their earnings in their projects. Thus resultantly heavy forex funds go out of the country. According to recent report published in leading dailies of the country during the current fiscal year payment on FDIs for the first nine months alone have increased by 29% to $1.277 billion, thus giving big dent to country’s forex reserves.
However, to give space to Pakistan to be part of globalization process World Bank and other funding Agencies provided funds to undertake structural reforms to speed up economic growth rate during first decade of the present century. No doubt fiscal and monetary reforms under taken resulted in strengthening the country’s economy to some extent, 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