Nowadays globalisation is on everyone's lips. By measuring the historical intensity of international economic links, the World Bank has identified that between the two World Wars and through the Great Depression the global poverty rose strongly and inequality widened. It seems due to colonialism and the exploitation of raw materials, which ensured the benefits to the colonising powers at the expense of colonised countries. Then, the liberalization and opening of trade across borders led to the globalisation. But, maybe the last phase of globalisation, which began after the election of Margaret Thatcher, and Ronald Reagan, gives the better definition of this phenomenon: the free market.
The XXI century shows the considerable gap between the rich and the poor and it is commonly admitted that it is due to globalisation. But, since its apparition we can see a lot of improvements in the richest countries but also in the developing countries. How does globalisation influence the market and the way of living of the people? Unfortunately, globalisation has also its limits; many organisations try to reduce the inequalities without any real success. But, can we be totally pessimistic and saying that globalisation can't improve, or on the contrary being optimistic because as a "new- phenomenon it has a lot to learn and solutions could maybe be found to help the poor.
The oil crisis in 1973, the "oil shock- was a turnabout for most of the countries and their economy. This crisis showed the world that Keynesianism was no longer efficient and that a new strategy was required. So, when Thatcher and Reagan (elected in 1979 and Reagan in 1980) suggested the free market it was seen as "the- solution of the economic problems. The idea was giving the private sector a major role respected to the public sector. Free market was linked to neo-liberalism, which advocates liberalisation and less power of the State, free trade, and reduce tariffs barriers.
As the middle class grew the space between them and the poor also grew. ... The poor did not necessarily get poorer but the gap between the poor and the affluent was continuously widening. ... With minorities the question of race perpetuated the gaping divisions between rich and poor. ... The separation of white and black corresponded directly with rich and poor. ... The gap between rich and poor was huge. ...
Closing the income gap between the rich and the poor countries has been a goal of the international community for the last 50 years. ... But the global gap between the rich and the poor countries has not closed. Instead, it has widened. ... This allows richer countries to help their poorer neighbors through better cross-border infrastructure without putting undo stress on their own national budgets. ... If current trends persist, countries that face high transportation costs and other geographical problems will be left far behind and the gap between the rich and the poor will only widen...
In 1990, the gross domestic product (GDP) per head in poorer countries was 5% compared to the rich countries of 2%. ... This has resulted in the paradox of the rich among the poor. The gap between these two extremes have widened and in some countries, you can see well built houses and in the near distance shabby small houses living in close proximity. ... The current standing of the rich earning about seventy times the poor are causing the rich to get richer. ... Thus globalisation which gives a heavier weightage to the fortunate does not totally neglect the poor. ...
Inequality creates a major gap between the rich and the poor; this is a major economic gap that needs to be dealt with. "The U.S. itself also has the largest gap and inequality between rich and poor compared to all the other industrialized nations" (Shah). Since there is no government policy to stabilize the rise in poverty, other factors help widen the gap that is the shrinking middle class. ... With this greed as a motivator, many production services from the United States move to countries where labor is cheap. ... All this contributes to the growing gap between the rich and the poor. ...
These income disparity, unequal distribution of financial amount and material resources creates a huge gap between rich and poor. ... This indicates that the economic inequality is increasing instead of declining, thereby triggering many problem by widening the gap between poor people and rich people. Economic inequality can be related to such social problems because if there is not much gap between poor people and rich people there would not be much tension building anger and frustration within them. The income disparity is the prominent component in Bhutan that creates increasing gap betwe...
Globalization is the multifaceted process that increases the interconnection between the economies in terms of trade, capital and culture. ... Lot of research studies has established the relation between the increase in global integration and growing inequality in developing economies. ... Positive Impact of Global integration to developing countries 1. ... China's economic prosperity amazed the entire world and makes them the leading destination for the Global companies for doing their business operations. ... These poor economies are urgent need of critical resources both for the immed...
The Industrial Revolution strengthened the country's economy because we could rely on ourselves instead of imports. Our country became wealthier and more populated due to the revolution Liberty, republicanism, and independence are powerful changes to the social environment. ... During the Revolution, the gap between the rich and the poor widened. Short economic depressions were the cause of high unemployment rates, and more social tensions between the classes. Although the wages did increase, the rich class had to watch the poor class suffer in dreadful housing, eat adulterated food, ha...
Friedman does discuss the negative effects on the economy from globalization such as the widening gap between the wealthy and poor because the middle class ends up either getting richer or poorer. ... With globalization, ties are built between countries in such a way that they cannot afford to war with their neighbours if they wish to prosper. ... He does not think that globalization alone will correct the problem without help from uncorrupt democratic governments. ... I feel that most cultures have remained true to their origins and that globalization does take a person away from their orig...
The poor in our society are not benefiting from the increased wealth in the country. The income gap between low-income families and high-income families is widened. ... In 18 states high-income families got richer while the poor got poorer. ... Yeah we're getting richer, but it's the rich that's getting richer, not the poor. What can we do to stop this trend? ...