Ecologists have long been against globalization as they firmly believe that trade liberalization takes place without taking into account key environmental issues such as pollution control and resource usage. According to World Health Organization (WHO), that unsustainable rate of consumption of natural resources in poor countries which is essentially done by the wealthier economies has farfetched environmental consequences. While it is depleting the natural resources at an exorbitant rate, the depletion of ozone layer and production of toxic waste products has also caused stern health risks and unfortunately, the risks are barely borne by the people who benefit from the resources. (OECD, 2008)
Globalization causes deforestation due to conversion of forests into agricultural fields and industrial plants. According to OECD, world lost 3 percent of its forests between 1990 and 2005. Besides, 200 square kilometre of forest land which is approximately twice the size of Paris disappears every day. As a result, UNO predicts poverty boom in the medium term mainly stemming from deforestation and water scarcity. In the next 70 years, 1.8 billion people will be deprived of water with Northern China, Central Asia and Andes being the major risk areas. (UNEP, 2007)
Financial globalization on one hand has rendered more integrated and sturdy financial and commercial markets, but on the other hand, it has also led to financial volatility and crises. The imperfection in one financial market creates bubbles, herding behaviour, speculation and crashes even in the markets with sound financial fundamentals.
Besides, if the country becomes dependent on foreign capital, any shift in capital flows can create financial difficulties and economic downturn which spread across economies. For example, between 1973 and 1997, there were 44 financial crises in developing countries and 95 in the emerging markets which led to respective output losses of 6.25 percent and 9.21 percent of GDP. (IMF, 2014)