How Globalization Has Impacted and Changed Latin America (Essay Sample)

Student’s Name
Professor’s Name
Course
Date
How Globalization Has Impacted and Changed Latin America.
Introduction
Globalization refers to the interconnection of the world. It implies a frictionless world without state-sanctioned barriers to economic interaction. Latin America is a region with diverse cultures and histories. The globalization of the region in the modern sense began in the 1980s with the implementation of International Monetary Fund (IMF) programs to solve the debt crisis in the region. However, it was not the first time that the area was connecting to European capitals and other world cities. Historical globalization occurred during the colonial era connecting the region with its colonizer. Therefore, the region is interconnected in various ways, including sharing the negative consequences of globalization. The similarities include culture, language, religion, sports, and eating habits. Globalization has had negative and positive impacts on Latin America. Positive elements include demographic improvements, production, trade, and the improvement of the labor markets. Negative aspects include rural-urban migration, cross-border immigration, and infrastructural deficit. Thus, globalization has impacted Latin America negatively and positively, which is described in detail in this paper. 
Latin America
Latin America is also known as South America since it is the southern part of America but influences the European Latin culture and languages. Countries in Latin America include nations in Central America, South Caribbean Islands, and Mexico. Another view of Latin America is that it refers to countries that speak French, Portuguese, and Spanish in the Americans. The region is located south of the United States and lies between the Atlantic and Pacific oceans. Some of the sovereign states in the region are Argentina, Brazil, Bolivia, Colombia, Costa Rica, Venezuela, Uruguay, Peru, Paraguay, Nicaragua, Panama, Ecuador, El Salvador, Honduras, and Guatemala, among others.
Globalization in the Region
Globalization refers to the interconnection of the world using modern technologies. There is historical and modern globalization. Historical globalization began with the region's interaction with European colonizers from the 15th century up to the 19th century, when colonialism ended. The experience has shaped the region's development and the interactions it has with the rest of the world to date. The drivers of historical globalization were the growth of the capitalist economy in the west that was followed by the geographic expansion of the division of labor, search for raw materials for industrial production. Since 1492, the development of Latin America has followed the trends established by historical globalization. The history developed forces, such as dependency, neo-imperialism, and regulation theory that cause underdevelopment in the region (Santiago et al. 62). Thus, historical globalization continues to influence modern globalization, which follows the patterns of the past.  
Modern globalization began in the 1980s with the interaction of the region with the IMF to solve its debt crisis. The influence of the latter experience is still felt in the country today through its multidimensional influence. Modern globalization influences the financial markets, reorganization of production and distribution, and the rise of key cities as command and centers of global trade. Although modern globalization has its roots in historical globalization, it is growing through the adoption and spread of transport and communication technologies (Santiago et al. 62). For the first time in human history, a multinational organization can produce a product in any region of the world and sell it to consumers anywhere on the planet. Therefore, commerce and industry defy the traditional boundaries established for political and geographic reasons. The borderless world is creating an efficient movement of people, capital, goods, services, and information. The changes are now creating a global marketplace. 
           Globalization has positively contributed to the region in numerous ways. First, it is the liberalization of the economy. Most Latin American countries have adopted globalization policies, such as privatization, neoliberalism, and deregulation, among others, to reverse decades of economic mismanagement. The change has opened the region to global capitalist finance, production, marketing, and consumption regime. The interaction of the states with the IMF has reduced government control over the market. As a result, most economies ceased being closed and became open to free trade. Globalization has also replaced state control on production, resources, and services through the privatization of some government institutions. It has changed the region from import-substitution-based and socialist ideologies to embrace free markets (Santiago et al. 62). The strategies reduced government control over financial markets, developed a flexible labor force and allowed for innovative management of government entities. Reduction in state control provides the economy with more technical and disciplined workers capable of growing a robust economy at the national, regional, and local levels. However, the fundamental changes are not uniform, with countries, regions, and local areas experiencing variation in the pace of change. The changes have altered the way goods and services are produced and provided to the citizens. It is also changing the structure of relationships and cultural identities.
           Globalization is transforming the economy's structure in Latin America, albeit at a slow pace. Developed nations, such as the United States, Germany, Britain, and Japan, have transitioned their economies from being resources-based to service-based. The same development is occurring in Latin America at a slower pace. During the 1960s and 1970s, agriculture was the main employer and a source of livelihood to more than fifty percent of the Brazilian population. However, in the 1990s, the dominant employer was the services industry in sectors, such as finance, marketing, transport, and information systems. Nations such as Brazil, Mexico, Colombia, Costa Rica, and Panama are experiencing the sectorial shift of the economy faster than their counterparts in the region (Gwynne 248). The changes have resulted in job expansion in the service industries that benefits the people and the government of the day. The only shortfall is that the changes are not uniform in the region.
The region has also witnessed changes in demographics since the 1980s, which is a positive consequence of globalization. The main changes include the decline of overall population growth rates due to a reduction in fertility rates of women and an increase in the use contraceptives. As literacy levels, healthcare, and the participation of women in the workforce improves, the more the fertility rates decline. Adequate knowledge enables women to plan their families better hence the reduction in the size of the family (population (Gwynne and Cristobal 117). However, the majority of the people are younger, meaning that the potential for population growth will remain high in the coming decades.
 Life expectancies have also risen throughout Latin America. Improvement in medical technologies and the quality of life in the region is helping people live longer. It is estimated that people above the age of sixty-five years now represent more than twenty-five percent of the population (Gwynne and Cristobal 174). The increase in the elderly members of society will increase the population of the dependent members of society, putting additional pressure on the governments of these nations. The demographic changes are taking place within the framework of neoliberalism that makes it necessary to improve welfare reforms to help the elderly and the vulnerable in society.
Negative Effects of Globalization
           Globalization has had negative effects on Latin America. First, globalization is the primary reason for differentiating people and communities in the region and within countries. The widening wealth gap is evident within countries. The complexities of globalization see some enclaves of communities and individuals unable to access the benefits of globalization due to various reasons. Social groups with particular skills and capital are quick to connect with the global economy and the rest of the world (Gwynne 244). However, communities and individuals who lack these abilities have no way of leveraging globalization's advantages. Thus, such groups remain poor in nations that are becoming wealthy daily. Neoliberal policies may not address the community challenges since they always address macroeconomic issues and do not address inequality, poverty alleviation, the redistribution of capital and skills, and access to global opportunities. 
It has increased social polarization and inequalities in the region and within individual countries. It occurs when economic development benefits a select group at the expense of the majority. The concept analysis has concentrated on the macroeconomic data that shows positive development due to globalization. These indicators show a rosy picture in most developing nations as national development advances. However, these statistics ignore microeconomic data that measures the quality of life of individuals in society. Downplaying these statistics removes ordinary citizens from the dynamics of economic development and explains the impact of globalization. Thus, globalization is causing social polarization by ignoring the plight of o...