Free enterprise was seen as the key of economic success. And, at the same time, Margaret Thatcher thought that if rich people become richer by being well paid, they would launch the economy. The idea of changing the economic system took all its sense in 1982, when the debt crisis extended to all countries. Moreover, the end of the cold war and the fall of communism in 1988 precipitated the communist countries to adopt a new model of economy. The models that were in place since World War II collapsed and the laissez-faire neo-liberal capitalism became the dominant ideology. Most of the countries in the world, especially the developing countries, saw in this new way of managing the economy their deliverer. They opened their markets to competition and to global economy. It was, as well, the only possibility for many countries to improve their economy: especially in Latin America, where Mexico just stopped refunding its debt because it couldn't pay anymore. .
It is true that the 90s coincide with weak growth, high rates of unemployment and the decrease of the "pouvoir d'achat- and even an increase of the gap between rich and poor but we can't prove that the inequalities are due to globalisation. Many people are against globalisation and the increase of liberalisation but in fact we have to clarify that showing that globalisation is responsible of widening the gap between rich and poor countries will depends on the way you count poverty. The effects differ over time and across countries, and even differ across countries that are superficially very similar or very closely economically linked. There is no simple generalisation possible. The notion of gap between rich and poor countries is difficult to evaluate because we have to compare the PIB per capita of rich countries and the PIB per capita of the poorest, which is not really significant.
"A rallying point for many critics of today's global economy and of the IMF (international monetary fund) is that, while the advanced countries are becoming more and more prosperous, extreme poverty remains prevalent in many parts of the world.
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? ...
