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¶ … Pattern of Global Inequality and Globalization
The extreme inequality in distribution of global income is an issue that has attracted considerable concerns in the recent past and generated questions regarding the effectiveness of the current development model. Global inequality is a major issue for world's economies since it slows economic growth and creates social and health problems. Global inequality continues to occur despite recognition that it's a dysfunctional process with huge negative impacts on development and increased need to ensure equity is at the core of development agenda. Inequality across the globe has been highlighted by existing trends in commodity prices, employment, and government spending. Globalization has played a crucial role in increasing global inequality since it has widened the gap between the rich and the poor. Even though globalization focuses on more integration of countries across the globe, it contributes to global inequality by widening the gap between the rich and the poor.
Trends in Global Inequality
Global inequality is a phenomenon that goes beyond national borders and incorporates three major concepts. The first concept in this phenomenon is inequality between nations of the world that is calculated using GDPs or mean incomes derived from household surveys of every country in the world though without examining the population (Milanovic, 2013, p.198). The second concept in this phenomenon is the fact that people from poor countries are all equally short whereas those from rich countries are equally tall. This difference emerges from...
The third concept is an individual-based concept where individuals' actual incomes are calculated regardless of their nationality.
In the past few decades, distribution of income across the world has changed remarkably as evidenced in changes in people's economic positions after the Industrial Revolution. In the aftermath of the Industrial Revolution, the poorest continue to be poor whereas the middle class and the rich continue to be rich. One of the most interesting developments in the recent past with regards to global income distribution is that the top quartile i.e. 1-5% has gained significantly whereas the next 20% has experienced little gains or had stagnant actual incomes. As a result, the world has experienced polarization among the richest countries of world population while poor countries continue to suffer.
According to Peet (2009), political-economic inequality has characterized international trade by making it to become a tool of national power (p.42). This implies that one nation-state utilizes the entire system to subordinate countries that are weaker economically. As evidenced in recent trends, rich countries utilize international trade to exercise their powers over poor countries, which in turn hinder the development of poor countries and increased global inequality. For instance, international trade is used to make less developed nations dependent on developed ones through unequal trade. Therefore, the modern world is characterized by…
References
Milanovic, B. (2013, May). Global Income Inequality in Numbers: in History and Now. Global Policy Volume, 4(2), 198-208.
Peet, R. (2009). Unholy trinity: the IMF, World Bank and WTO (2nd ed.). New York, NY: Zed Books Ltd.
Rodrik, D. (2011). The globalization paradox: democracy and the future of the world economy. New York, NY: W.W. Norton & Company, Inc.
Stiglitz, J.E. (2006). Making globalization work. New York, NY: W.W. Norton & Company, Inc.
Globalization and Labor Globalization is a term used in a multiplicity of senses, such as the global interdependence of nations, the growth of a world system, accumulation on a world scale, and the global village (Petras Pp). All of these concepts, as well as many others, are rooted in the general notion that the "accumulation of capital, trade and investment is no longer confined to a nation-state" (Petras Pp). Globalization in
Globalization The term "globalization" is a debatable one. Some view globalization as a process that is beneficial -- fundamental to future world economic development -- and also inevitable and irreversible (IMF, 2000). Others regard it with hostility, and sometimes fear, arguing that it increases inequality within and between nations, threatens employment and living standards and disturbs social progress. This paper offers an overview of some aspects of globalization and aims to
Globalization of Human Well Being Globalization has been held responsible for increasing the gap between rich and poor countries and thus giving rise to social and economic inequalities between higher and lower income groups. However the best indicator for measurement of economic inequalities has always been per capita income. Goklany contends that it is not the per capita income, which is important instead there are some other indicators, which can better
Finfacts.com/brands.htm Levitt, T. Globalization of markets, Harvard Business Review Ritzer, G. 2004, the Globalization of Nothing, Pine Forge Press, California. Arnoldy, B. Australia at the crossroads of globalization http://www.csmonitor.com/2006/0307/p01s03-wogi.html James, P. Australian Social Attitudes Australian Humanities Review 2006 avaliable online: http://www.lib.latrobe.edu.au/AHR/archive/Issue-April-2006/james.html Arnoldy, B. Australia at the crossroads of globalization the Christian Science Monitor http://www.csmonitor.com/2006/0307/p01s03-wogi.html Garrett G., Globalization's Missing Middle Foreign Affairs 2004 http://www.foreignaffairs.org/20041101faessay83608/geoffrey-garrett/globalization-s-missing-middle.html Sauer-Thompson, G. Globalization and Australia's future: a big worry http://www.sauer-thompson.com/archives/philosophy/002932.html The Economist Intelligence Unit Sauer-Thompson, G.
For instance the World Trade Organization reports having "allowed First World countries to raise trade barriers protecting their companies, even as we have served as their forum for insisting that Third World countries lower their trade barriers more and more." (WTO, The truth is that if richer nations were to open their markets to the LDC countries for increase opportunities of export, generated would be approximately $700 billion in additional
Globalization is a concept that has become associated with the information age. With the advancement of computers, Internet and communication techniques, the world has become an increasingly smaller place in terms of information and communication. E-mail and newsgroups for example has made instant communication possible for people from anywhere on the globe. Information regarding foreign countries, their customs, and policies has also become as easy as typing the appropriate term