Essay On Globalisation And Financial Liberalisation

Introduction

Globalisation and financial liberalisation has helped in making the world a global village. Especially in the 21st century that science and technology has advanced making it possible for multinational and domestic banks to be able to do necessary transaction faster and more efficiently. Also , banks , companies and even countries borrow money easily from other nations at reasonable interest rate and vice-versa. Globalisation and financial liberalisation makes different countries and regions economies link together whereby an economic problem in one country can lead to a spill over effect in other countries if not curtailed. For example, when Greece economy was in pieces in 2013 it would have had a spill over effect on the whole of Europe since they use the same currency and their economies are directly linked together in various ways, so the European Union had to bail Greece out by borrowing them more money.

However, despite the highly favourable opinions that most academicians and international development organisations hold on the globalization and financial liberalization process and its impact on developing countries, and not withstanding the strong support of empirical evidence derived from the integration with the global economy, the criticism against globalisation and financial liberalisation still continues. An online debate on “ Globalisation and poverty “ organised by World Bank in mid 2000 echoed the loud and often very aggressive protests against globalization that Seattle, Washington , and Prague ; nearly all the participants in the debate emphasized the negative impact of globalization process on the distribution of income and wealth between and within countries.

Most developing countries becomin...

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...quisition of domestic banks if managed properly will make domestic banks to be in a competitive position in the global market and a good example is mergers and acquisition of domestic banks in Nigeria that started in 2004 .

(9)Domestic banks becoming multinational

The future of domestic banks in developing countries is when they start having branches and centers in different countries after they have established their base in their country strong enough. A recent trend is what is happening in Nigeria today where some Nigeria banks has branches in Ghana namely Access bank, United bank for Africa, Zenith bank, Stanbic bank, Guarantee Trust bank, Fidelity bank and so on.

So this new trend will make domestic banks be more competitive in the global market because their clients travel around and can easily find their branches or centers everywhere they go.