By M. Bakri Musa

Chapter 5: Understanding Globalization

Leveling Effects of Globalization

What critics in the West fear most about globalization is its leveling effect. It means that an uneducated American will fare as badly as an illiterate Indonesian, but at the same time, a skillful Indian programmer can compete equally with his American counterpart. The much coddled and highly unionized American workers panic when they discover that Mexicans earning a fraction of the wages can do the same work just as efficiently and skillfully. Consequently many major American manufacturers are moving their plants to Mexico. It is this aspect of globalization that is most feared by America’s Pat Buchanans and Ralph Naders.

Manufacturing jobs are not the only ones heading south. Typists in India do the transcriptions for many American hospitals. My medical dictation at the local hospital is digitized, encrypted, and then transmitted via Internet to India, where it is downloaded and transcribed, and then re-transmitted back to America, ready for my patients’ charts by the next morning. Many of these typists are Indian doctors who found that they could earn more as medical transcriptionists working for American companies than as practicing physicians paid by the Indian government. Looked at differently, American capitalists value these Indian physicians for their typing skills while the Indian government does not value their healing skills.
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