"" Many critics have characterized globalisation as a race to the bottom in which the free play of market forces drives wages and labour standards in the poorest countries even lower as the latter attempt to attract foreign investment. Based on this line of reasoning, it is tempting to conclude "as many northern activists, who are against globalisation, have done "that trade should be restricted. Some critics even question the benefits for the poor of policies aimed at stimulating economic growth. However, according to a recent World Bank paper there is ".no evidence whatsoever of a systematic relationship between changes in trade and changes in inequality." .
Yet, even with that caution, we can argue today that economic globalisation is no friend of inequality and absolute or relative poverty. The notion that trade and economic growth aggravate poverty is unfounded, "conversely, restrictive trade policies tend to dampen productivity and growth and worsen conditions for the poor."" However experience has confirmed that trade generally benefits the poor, by forcing economies to become more efficient and boosting growth, which is essential to raise living standards. In the current wave of globalisation (1980), the World Bank has identified a group of 24 developing countries, home to some 3 billion people, as 'recent globalisers'. These countries (China, India, Bangladesh, Brazil, Malaysia) are defined by having strongly improved their trade performance. Inequality has risen in some developing countries that have intensified their international economic links, but it has also gone down in others (such as the Philippines). In yet others, such as Vietnam, it has not changed, even if there were enormous economic transformation. These examples show how economic reforms and outward-looking trade policies can rapidly lift hundreds of millions out of poverty and many people or countries that jumped into global economy became richer.
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? ...
