Globalization's effects on poverty in developing economies

¶ … Globalization Help or Hurt the World's Poor?

Even with the fact that the process of globalization has had a beneficial effect on many countries; it has also generated much controversy regarding the effect that it has had on the world's poor. The fact that a great deal of underprivileged individuals fail to take advantage of the resources coming along with globalization is largely owed to the political and economic institutions that control affairs in the territories where these people live. The numerous debated that have emerged as a result of the fact that economists have trouble determining whether globalization is effective in poorer areas or not have brought much confusion and the general public is unable to gain a complex understanding of the situation.

Many economists tend to believe that globalization is going to have a beneficial effect on the world's underprivileged countries in the long-run. However, one might find him or herself wondering: at what cost are these countries going to experience success. Developed countries need to understand that it is up to them to back up poor international players and that they are also going to suffer in the near future with the purpose of improving long-term conditions. "Much of the theory of comparative advantage is about the long run when people and resources are assumed to be fully mobile between activities, whereas much of the pain of adjustments is in the short run" (Bardhan 3).

The masses are often inclined to believe that globalization is making the rich richer and the poor poorer. However, this is wrong and when considering the resources that wealthy countries have invested in poor countries through a series of programs during the recent decades it is only safe to claim that poor countries are slowly but surely becoming richer. By looking at countries like India and China and at the fact that poverty has experienced a significant decrease there it appears that globalization is actually very beneficial for many of the world's poor individuals and that it is all a matter of organization.

The world is heading toward a better future and people have to refrain from focusing on the unfortunate events currently happening because of poverty. As positive feelings pervade corrupt societies conditions are likely to improve and abuse is probable to happen less frequently. I have witnessed a great deal of poor individuals being unable to fructify their encounter with globalization, but, as I previously mentioned, this is all a matter of poor organizing. If the authorities in poor countries were to concentrate on providing people with education regarding globalization and concerning how they can profit from the process, things would most certainly improve in these respective countries and people would no longer suffer as a result of globalization.