Poverty In Poor Countries Essay

In today’s age of emerging globalisation and global governance, every country in this world are connected as one global economy. It is evident that poverty in developing countries cannot be ignored by the West, as our society today is interwoven among different networks of global trade, diplomacy and economic co-operations through various institutions such as the United Nations (UN), European Union (EU), North Atlantic Treaty Organization (NATO), the World Trade Organization (WTO), the World Bank and the International Monetary Fund (IMF). However, the effectiveness of the foreign policies drafted by these organizations can be questioned as it has done little to reduce poverty in poor nations. The new global economic order is seen as being harsh on the poor. Through the Western countries’ superior bargaining power, poor countries are often exploited through their weaknesses, ignorance, or even corruptibility so that the negotiations often result in greater benefit for Western countries.

These global institutions are not totally unjust, but rather have become instruments for Western governments to pursue their own national interests that benefit themselves more than the others. An example can be seen through the current WTO treaty, where countries are not actually opening their markets enough and are still prone to protect their own markets against cheap products such as textile and agricultural products from being imported into the country. These imports are often subjected to tariffs, quotas and anti-dumping duties. The existence of these barriers has made it difficult for developing countries to enter and market their products in developed countries. Domestic industries are also often protected by developed countries through su...

... middle of paper ...

...d to the increase in foreign direct investment, since there is investor's confidence in the area where it is socially and politically stable. Hence, developed nations can assist poorer countries since it would be a win-win situation for both countries and the richer nations would reap positive benefits such as accelerated economic growth from doing so.

It is inevitable that Western countries should do more to promote economic development in poor countries. Due to globalization, countries around the world are becoming more interdependent among themselves. As developed countries, the West, including Australia has the responsibility to aid the poor. This can result in poverty reduction around the world, reducing the gap between the rich and poor. By helping the poor nations, both countries can gain mutual benefits, improving economic conditions in respective countries.