Zambia's once powerful textile industry has been wiped out by imports from Asia; several small industries such as Tyre manufacturers and medical supply companies have folded in the face of competition from large South African firms.
Organizations like the World Trade Organization (WTO) are supposed to help regulate the commercial status of all countries, including the less developed poor economies. The WTO is emerging as a very powerful actor in the globalization process, but without much beneficial influence being exercised on its direction towards lesser developed countries. The WTO is primarily an instrument of more developed governments and countries and its proposals for trade and investment are more in the interests of these powerful governments. The promotion of foreign direct investment (FDI) is hailed as the new engine for development. But FDI flows to Africa are very small (under US$ 5 billion in 1996), and are mostly given as advantages to only a few countries (such as South Africa). These investments tend to benefit the already privileged elite.
Another problem with globalization concerning LDC's is the fact that the newly global market is highly dependent on new technologies. Personal computers, fiber electronics, satellites, cellular phones, networks of faxes, e-mail and the Internet: all of these structures make economic and political globalization more and more a reality. The only problem is that the lesser developed countries have a much harder time than the more developed countries keeping up with the constant changes in technology. This can eventually create an even wider gap between the two.
Yet another problem LDC's face with a globalized society is the loss of traditional culture of one's home country. For example, in Africa, the cultural structure of globalization presents specific problems. Traditional African cultures emphasize values such as community, family, respect of life, hospitality.
