Impact of Globalization on Developing Countries
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| GROSS DOMESTIC PRODUCT
Gross domestic product (GDP) is the total monetary or market value of all finished goods and services produced within the borders of a country in a given time period. Guyana’s economic activity has been centered around the mining sector since the early 1990s. Agriculture, mining (gold and bauxite), eco-tourism, and foreign aid are the mainstays of the Guyana economy. Recent debt reliefs under the Highly Indebted Poor Countries initiative, as well as entry into the Caribbean Single Market and Economy, have enabled infrastructure investment and market expansion. As a result, commercial agriculture and industrial production have grown. According to the Bank of Guyana 2018 report, Guyana's economic growth rate was higher in 2018, at 4.1 percent, compared to 2.1 percent in 2017. This resulted from increased bauxite, livestock, forestry, and other crop production, as well as increases in construction, manufacturing, and service activities. Favorable commodity prices, increased investment spending, and moderate domestic demand were major factors. Over the medium term (2020–2024), the average annual revenue growth in the government is expected to be 17.3 percent. Those are lofty projections, but they pale in comparison to the International Monetary Fund's (IMF) 85.6 percent GDP growth forecast in its 2019 World Economic Outlook last year. (see figure 3 below) .
While there is a positive outlook to this phenomenon it has negatively influenced the vulnerable part of the Guyaneses society. LABOUR Global labor markets have become more integrated over the last two decades. Impacts of globalization on labour in Guyana assumes how much of a country's labor force participates in, or could potentially compete in, the global market. The rapid growth of the global labor supply and its manifestation through increasing exports of emerging markets and developing countries has generated tremendous benefits.Globalization of labour has created countless jobs for Guyanese and provided wage convergence through outsourcing agencies, thus reducing Guyana’s unemployment rate. Globalization has led to exploitation of labour however the Ministry of Labour Is working to improve national labor policy, industrial relations, conciliation/mediation, labor standards, labor legislation, occupational safety and health, general coordination of labor administration services, and three-way consultation and dialogue on labor issues. The manufacturing sector has been most affected by offshoring because it is a more tradable sector. This situation is one of the contributing factors to the high unemployment rate in the country. While globalisation creates job opportunities through outsourcing it is also one of the contributing factors of unemployment in certain industries in a country. Take for instance the new oil industry in Guyana. The industry requires a new set of skills and knowledge in order to gain employment, which most Guyanese lack, thereby causing unemployment. Unemployment Rate in Guyana remained unchanged at 11.90 percent in 2019 from 11.90 percent in 2018.
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