Issues of Global Economy

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DateGlobal Economy: Critical Review of an article

The article on information technology, cumulative, causations and patterns of globalization in the third world by James Jeffrey on the position of Information technology in relation to globalization in the developing world. James argues that although technology has been beneficial, the payback left out most of unprivileged developing countries especially in sub-Saharan Africa. The author is undoubtedly able to rest down the special effects of information technology in facts and competently on the global economy. This piece of writing will center on the strengths, weaknesses, and legality through explanation and in depth analysis.

James argues that the effect of information technology on Global perspective has not been deliberately considered. He further stipulates that some developing countries are not in a spot to enjoy the technical changes in the information technology. James further posits that developing countries should become accustomed to the plentiful uniqueness of the information technology such as capability of eliminating irrepressible competition in the business globe. He added that there are great ideology and procedures linked with the information technology (Bigman 2007, p.3-5).

James draws his strong points from a World Bank publication that was published in 1996. The document was entitled “Global Economic Prospects and The Developing Countries.” This document showed findings on irregular participation of developing countries in overseas trade and investments. Good number of developing countries experienced undeniably inferior foreign investments to GDP ratios. Technology situates its control on a range of aspects of the economy such as societal, political, and monetary factors (Bertho 2008, p.168-170).

James argues that in the midst of developing countries, the NICs more than any other cluster of developing countries have immensely improved by having a clear understanding of the benefits of information technology and enhanced interaction amongst them. The author supports his argument by giving examples of the countries who have realized dire need of involvement in information technology such as Taiwan, Singapore, and Korea. He emphasizes that these countries had sensed the revolutionary changes and transformations brought about by the information technology. The countries deemed it necessary to increase their competitive edge by thoroughly involving themselves in technological transformation of the complete economy (French 2008, p.80-81).

James derived his arguments from very rich sources such as the World Bank and other loaded sources. Additionally, it comes into reader’s mind that the issue of technology in advancement of the economy has been immensely studied. James argues that developing countries should be able to comprehend and absorb the various benefits coupled with technology in enhancement of the economy. The author, who acknowledges the uneven distribution of globalization, adds that governments should come up with very clear policies that aspire to incorporate the developments of information technology in the developing countries (Bertho 2008, p.163-165).

James elaborately, describes and relates the thought of information technology with the global economy by recurrently giving examples. He stipulates that information technology have ease communication amongst countries by stating e-commerce among the advantages gained by technology. He further argues that there are numerous cot saving ideas that are found in technology. According to James, the countries involved intensive use of technology, gains a competitive advantage and better infrastructure thus increasing their foreign investments (Bigman 2007, p.4-6).

The article’s motive was to relate globalization with the information technology but this has not been entirely considered by James. The author does not clearly explain in this article, how information technology can be used to improve foreign trade and investments. As an alternative, James dwells more on the matter of the GDP. However, James does not convincingly relate the issue of GDP and the information technology in developing countries. As much as he is able to point out that 30% GDP of developing countries is dependent on the FDI, he is unable to compare GDP with the investments on information technology.

The fact that only developed countries benefit from the foreign trade has not been clearly discussed. Some of the statistics and information that James uses such as the World Bank are outdated. Several aspects of communication have not been discussed. James did not satisfactorily argue the contribution of technology towards global integration. The issue of making and implementing the policies that would promote the incorporation of technological changes to the economy of developing countries was lightly touched (Bigman 2008, p.164-167).

The author has really pointed out the fact that “changes are circular and occur in a continuous cyclic process” by basing his case on Myrdal belief of cumulative causation and not on some other theories. James posits that a little modification in any feature of technology will in due course result into change in the sum total structure of an institution’s technology. He argues that a miniature change in the information technology leads to a complete transformation in the entire economy of developing countries (Moghaddam & Redzuan 2012, p 55-56).

The credibility of the article has been solidly improved by use of various reliable sources such as the World Bank, great economists’ books and the government resources. James articulately, uses quotes and paraphrases to support his argument. James has also based his ideas on figures and professional terms such as GDP. Additionally, James has used examples to support his argument and techniques such as tabulation for easy understanding.

This article is very important since it addresses technological challenges that affect developing countries thus hindering them from attaining global competition economically. The findings by James are very relevant to the thesis of this article. Most developing countries have really improved in embracing technology hence making them gain competitive advantage. The methods used by James averagely recommendable.

This article really tried to exhaust its theme and the author used both primary and secondary sources appropriately. James has assigned a paragraph to every important point hence making it easy to read and understand. He further subdivided major topics into subtopics thus simplifying reading. Moreover, James has arranged his work sequentially from the most significant to the least important.

Works Cited

Bertho, M., Crawford & Fogarty, E 2008, The Impact Of Globalization On The United States, Westport, Conn, Praeger.

Bigman, D 2007, Globalization and the Least Developed Countries: Potentials and Pitfalls, Wallingford, Uk, Cabi.

French, M 2008, The Impact of Globalization on Less Developed Countries and The Role of Intergovernmental/Multilateral Organizations In Promoting Development In Less Developed Countries, Thesis (M.A.),Webster University.

Moghaddam, A, & Redzuan, M 2012, “Globalization And Economic Growth: A Case Study In A Few Developing Countries (1980-2010)”, Research In World Economy, Vol. 3, No. 1, Pp. 54-54.