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20 / 07 / 2004
Guillermo Cardosa: Globalization has been detrimental to many countries

Cardosa, the director of the Euro-Latin American Business Institute, in Spain, stated that the current technological globalization does not benefit poor countries, as in the example of Mexico, where the maquiladoras have yielded scant profit.

Guillermno Cardosa, director of the Euro-Latin American Business Institute, in Spain, stated this afternoon that, “not all countries have benefited from globalization, which has actually been detrimental to many. In fact, countries in Asia, Africa, Latin America, and the former Soviet Union have suffered an increase in poverty levels.”

According to Cardosa, who spoke at this morning’s session “Business and Globalization”, as part of the Dialogue, “The Role of Corporations in the 21st Century”, the current globalization model is asymmetrical and exclusive; free market powers do not distribute wealth and it is necessary for governments and international organizations to intervene.”

Cardosa argued that, “financial trade is 50 times greater than real trade. Aid is at its lowest since 1947, when the Marshall Plan was implemented, and there is a discrepancy between transnational businesses and governments.”

Cardosa added that, “a new global pact is required to redefine development. Developmental aid should not be assistance-based, but rather create technical and administrative capabilities to enable the transition from these models to others that are more favorable, as the current globalization model leads to greater poverty.”

Cardosa also stated that, “México is a receiver of maquiladoras. They were created thirty years ago and enabled the country to solve its employment problem, but they involve low-quality employment, with low salaries and a lack of skilled jobs. They have not lead to domestic economy, as the Mexican component of the final product is very small, and technology is not brought to México. Therefore, this type of globalization does not benefit the country.”

Cardosa concluded that the current globalization is exclusive and fragmented and should be replaced by “influential, solidarity-based, sustainable globalization.”