Globalización En Venezuela

Páginas: 5 (1176 palabras) Publicado: 24 de octubre de 2011
Committee: Plenary General Assembly (PGA).
Country: Venezuela.
Topic: “Globalization in Venezuela"

Globalization is a process in which international markets have opened up in order to impulse the international flow of money and products. Globalization intends to promote trade worldwide, therefore, positively influence economic activity in each country. However, it seems like only a fewcountries truly benefit from globalization, which are, of course, the countries considered as developed such as the United Sates, Canada, Australia and most of the EU.
The countries mentioned as developed before, posses impressive economic power. Therefore, they have very strong corporations that can compete internationally, for they have the economic and physical resources to dot it. Unfortunately,most of the businesses from developing countries do have neither the economic nor the physical resources needed to compete against these large corporations. As a result, local businesses from developing countries are negatively influenced from globalization, for they cannot afford to compete with established multinational companies. Consequently, local companies close and stop production anddeveloping countries are forced to consume from developed countries making them richer.
Venezuela completely agrees with globalization, however it does not think that its benefits are distributed equally between countries. It thinks that the powers, primarily the United States, take several advantages on developing countries, and it considers that unrestricted free trade benefits only those with morefinancial leverage.
Venezuela has agreed to cooperate before with the neoliberal model of corporate globalization proposed by the United Sates, which supposedly promoted Latin America´s economic growth. However, it has been a complete failure. During the last 25 years, most of the Latin American countries have followed Washington Consensus, a set of market- oriented policies like tradeliberalization and privatization embraced during the 1990s. Though, this plan increased exports, less than a 0.5% per capita income growth average since 1980 was observed.
Venezuela did not notice a major change in its economic growth and in order to make sure that its country excelled, it had to start its own economic growth policy. In this way oil revenues have been used to revitalize industries,diversify production, create employment and provide effective public services such as health care, education, clean water, subsidized food, electricity, and other basic services to Venezuelan citizens. In the last decade, Venezuela’s economy has experienced important increases in its real GDP ranging the lowest 2% in 2001 and the highest 16% in 2004. The other years have had 3, 4, 8, 9 or 10 %increases, confirming that the plans set by Hugo Chávez worked.
Venezuela’s plan for development does not only focus on Venezuela though. Venezuela pretends to strengthen ties among the Latin American countries to promote trade and economic growth, in order to make sure that its regional partners, who are all considered developing countries, have a chance in the global market. Venezuela believes incooperation and teamwork among the southern countries, and it thinks that if they work together, they can end United States and Canada’s economic domination over the American countries and decrease the region’s dependence on the US as the top-trading partner.
In order to promote cooperation between Latin American countries, Venezuela has promoted the creation and development of several tradeagreements and regional corporations to ensure economic, political and social development. Such organizations include: CELAC, Mercosur, USAN, Rio Group, Contadora Grupo, ALADI, G3 and ALBA. Each organization was founded in different year, it is conformed by different members, and it has different objectives, however, they all try to protect nascent industries, promote local development of jobs,...
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