Due to the phenomenon of globalization, a substantial part of manufacturing has been moved overseas and goods are constantly being shipped all over the world. These processes are contributing to the advancement of international trade and economic improvement of many lesser developed countries. Unfortunately, globalization has also led to a significant growth of worldwide inequality. While the Western world has largely benefited from the changes, many countries in the developing world are facing great troubles adjusting to the new reality of global interconnectedness. Economic constrictions, unemployment, the weakening of government, corruption, and military conflicts are pushing people to leave their homes and seek better lives elsewhere.
Globalization, a great number of people regard it as a chiefly economic phenomenon, necessitating the additional integration, or interaction, of nationally based economic entities through the development of international trade, investment and monetary flows. Also included in this view is the rapid advances in sharing social and cultural values as well as new technologies as the world grows together. Globalization can be defined as a procedure in which geographic distance is a diminishing factor in the formation and sustentation of international economic, political and cultural relations. Proponents of this process believe that free trade and integration of world markets will facilitate growth in economies both old and new. Proponents also believe that globalization will stimulate the spread of democracy and in turn improve the condition of human rights so intrinsic to the values of democracy. Critics of globalization see globalization quite differently, portraying it as worldwide push toward a globalized economic system under the control of global corporate trade and banking institutions that are not responsible to the democratic system or governments. Many questions surround globalization. What are the costs and benefits of free trade? Does globalization exacerbate global inequality? What impact does globalization have on the environment? Are industries in developed nations being weakened by industries in developing or third world countries that have a lower standard and therefore cost of labor?
It would be correct to say that global inequality and poverty is a serious issue for different nations. There have been cases that rich is becoming more rich and poor poorer. In the presentation, group has been able to make certain relevant questions about global inequality and poverty. It would be an alarming fact to state that half percent of the population controls more than 33 percent of world trade. The group has raised a pertinent question of relationship between inequality and poverty.
Globalization is the integration not only in terms of economies, for example, goods and services, technology, financial flows but also of societies such as communication, ideas, information, and people (Wade and Robert, 2013). Although globalization brings some drawbacks to developing countries, it creates many advantages through multilateral trade agreements; non-tariff barrier; elimination of interest rate ceiling and the opening of capital markets. Some researchers argue that globalization is the main cause of any increase in poverty and inequality. This essay illustrates the opposite concept that global inequality no longer rising and world poverty may be declining.
The last one is represented as the poorest in economic terms; it is therefore characterized by a high-income inequality between the two opposite classes. However, since the early 2000s, Developing countries like Asia, Latin America and Eastern Europe developed their economic resources by a me-dian of 14% every year. In comparison, developed countries including America and Eastern Europe made benefits of only 3% per year (Neiger, 2010). Nonetheless, the gap between the rich and the poor is still considerable and according to Amina Mohammed, evidence was given that the region which will be the most disturbed by the growing income inequality is Asia with 25% (Mohammed, 2014).
Globalization means different things to different people, so there is no one set definition. It is generally considered to be the spread of cultural, religious, political and economical systems, and symbolizes an increase of global communication, flow of ideas, and transfer of knowledge. Is also the spread of capitalism and Westernization. Globalization creates new opportunities and benefits, yet it can also bring suffering. Each region of the world—within continents, countries, and towns—experiences globalization in a different way. While one country may experience prosperity another may experience marginalization and impoverishment. This is because access of power is selectively given to certain groups. Globalization tends to produce success for the powerful at the expense of the
Globalization is a series of social, economical, technological, cultural, and political changes that promote interdependence and growth. Globalization raises the standard of living in developing countries, spreads technological knowledge, and increases political liberation. (Harris 5-23) The main cause of globalization is influence from other, more developed, countries. Globalization is a historical process that results from human innovation and technological progress. The social effects of globalization are clearly illustrated in Peru. Once a third-world country filled with poverty and oppression, Peru is now transitioning into a developed nation. In Peru, globalization has raised the human development index, empowered women, and created a stronger country. (Leon 90-91)
Globalization is an important contemporary phenomenon and it is difficult to avoid the trend. Its development as well as make people recognize each other's lives in an interdependent global village. Therefore, globalization encourages people to care about many global equity issues such as peace, justice, environmental protection. Like many phenomena, there are both sides of pros and cons in globalization. Globalization can create new opportunities for the expansion of international trade, and enhance global commodity circulation and improve cultural exchange (Krier, 2001). It is beneficial to the development of integration with the global economy. Emphasizing efficiency in terms of globalization
Inequality matters because the degree of inequality coupled with national income determines the extent of poverty (Perkins). The 1990s showed the first signs of narrowing inequality since the Industrial Revolution. Despite recent progress in inequality reduction, the average inequality within countries is greater now than it was 25 years ago. Latin America, the Caribbean, and sub-Saharan Africa stand out as regions with exceptionally high inequality. For example, the global poverty gap is about 3%, while the gap in sub-Saharan Africa is around 16% (WB REPORT). Moreover, by 2001, the poverty gap had fallen to single digits in every region but sub-Saharan Africa, where it actually increased (Perkins). Typically, this increase in inequality occurs because the income share of the top income groups expanding rapidly (WB REPORT). Other causes of inequality involve a legacy of racist policies (e.g., apartheid in South Africa) and mineral wealth (Perkins). A significant amount of falling global inequality has resulted from the rapid growth of China and India, two populous countries that achieved remarkable economic growth in recent history (WB
To sum up, it is clear that globalization has more advantages in developing countries. This is because it has a positive impact on the education system, increase the chances to improve the economy and it expands the essential infrastructures of developing countries. If the government of these countries did not act immediately in response to globalization, it might bring serious problem like lack of education and stagnation of economic and limitation in the essential infrastructure. Thus, it is important to these nations in all levels to draw profit from the globalization and push itself forward to ensure better lifestyle for the citizens.
According to J.H. Mittelman, globalization is "a historical transformation in economy and cultural diversity." Globalization is the idea of making the world act like one huge country. Globalization affects this world and the people in this world in many ways. Globalization affects the economic status of a country. It has indeed weakened the position of poor countries and exposed poor people to harmful competition.
For economic aspect, globalization has increased the rate of unemployment in developing countries. Many poorer countries have been struggling to accept globalization as a new development to improve their standard of living. Foreign investors especially from developed countries have to take the advantages of their natural resources and lower labour credits. Majority of developing countries focuses on exporting agricultural products abroad, but today, the developed countries have subsidize this advantage with the new genetic modified foods. With this kind of arrangement, the developing countries would have to remain poor due to inequalities of trade of goods and services. Nguyen manh tuan. (2010). this negative effect of globalization has been gradually increasing a huge difference between developed and developing countries. Take for instance, the gap between incomes of 20% of developed countries and developing countries as at 1960 to 1982 was from 1 to 30 percent. As at 1982 to 2014 the difference has grown to 60%. Increase in unemployment rate and poverty will be problematic to the world, if steps are not taken to tackle it. There will be increase in crimes like terrorism, armed robbery and many
The process of globalization has been spreading across the world during the last several decades, and as a result, the gap between developed and developing countries has become more noticeable and serious. The world includes nearly two hundred countries, only twenty of them are considered to be the most economically developed, and the rest of the nations have slow development or exist below the poverty line. In the world where every human should have the same rights as another, the great imbalance of incomes, education, medical care and even variety of food provision between different nations says about people’s inequality. That is why wealthy nations should be required to share their wealth among poorer nations in order to stop hunger, diseases,
Globalization, love it or hate it, but you can’t escape it. Globalization may be regarded as beneficial from an economic and business point of view, but however cannot be perceived the ditto when examined from the social sciences and humanities side of it. Globalization can be argued as a tool for economic growth, advancement and prosperity through co-operation between the developed and developing countries. The pro-globalization critics argue that the benefits that globalization brings to developing nations surpasses or outcasts the negative impacts caused by globalization and may even go a step further to state that it is the only source of hope for developing nations to prosper and stand out. However, the real question to be asked is as to what extent are the positives argued upon without taking into account the negative aspects of globalization towards developing countries. Moreover, how many developing countries out of many are exactly benefiting or even prospering from globalization is another question to consider. Therefore, my paper will dispute that indeed growth and advancement provided by globalization to developing countries is beneficial in short-term, but in the long-run, it will only bring upon negative impacts and challenges due to the obstacles involved such as exploitation of labour and resources, higher increase in poverty, and effects of multi-national corporations on local businesses and the economy, and to an extent the effects on the developing country itself.