The increasing pressure of globalization

The Rising Pressures of Globalization

The rising pressures of globalization on most developed countries have necessitated the use of extractivism as a short-term source of funding to construct infrastructure and increase government spending.

The Immediate Benefits of Extractivism

Extractivism has been identified as an immediate macroeconomic policy influencer through industry jobs and income development, among other variables.

The Long-Term Costs of Extractivism

The long-term costs of extractivism, on the other hand, are various.

Environmental Pollution

Environmental pollution is a detrimental externality affecting the developed countries of South America, Africa, and areas of Asia.

Exploitation of the Developing World

It is also worth noting that extractive promotes the exploitation of the developing world by the developed nations that own technology and human capital to undertake such extraction industry projects.

Skewed Resources Distribution

The consequence is skewed resources distribution in which the third world loses and steadily accumulates debts, unemployment, and poverty.

Neocolonialism

Developed economies have advanced technology that they extend to developing world through multinationals and in turn use such economic capability to influence political decisions in less developed countries, a concept referred to as neocolonialism.

The Example of Bolivia

In fact, Bolivia is on the spot over its proposed extraction of Lithium for the production of electric cars. Bolivia is one of the South American countries that possess significant mineral resources but is economically lagging behind. Its proposal is considered an effective economic course but has long term effects.

The Legacy of European Colonies

From the experience of European colonies, the extractivism industry was used by the colonial authorities to drain the resources of colonies.

Exploitation vs Industrial Development

In fact, the developing countries are a mere market of cheap raw materials while the developed nations manufacture better products with the same resources, create mass employment for their people while killing local third world industries.

Environmental Consequences

The depletion of such resources as forests is a future recipe for drought as the water catchment areas of the Amazon forest; the parts of tropical forests in Africa and Asia are encroached.

Wildlife Extinction and Tourism Industry

The issue of wildlife extinction and the collapse of the tourism industry are long-term costs of extractivism.

The Future of Extractivism

Most of the negative consequences of extractivism are actually facing the third world economies. Extractivism is, therefore, a short-term necessary evil in the developing countries with irreparable consequences in the long term if not moderated.