Factors Leading to the Increase in the Gap Between Rich and Poor Nations Due to Globalization

Global communications, space exploration, and international events are just some of the things that formed the interconnected web between nations and sped up globalization. However, as much as we like to think that the world is making progress, there is still the undeniable fact that some countries citizens are much better off and enjoy a higher standard of living than compared to the people of other nations. Ever since the era of globalization began, the gap between the First and Third World is becoming bigger and bigger.

The article details arguments regarding the consequences of globalization – and largely find that there is little consensus among the literature. This is, primarily, since few scholars can agree on the best way to measure globalization. They note three major debates in the field – It’s relationship to inequality (international and domestic) as well as government spending. Regarding international inequality, it does seem that globalization increased the rate of per capita growth.

In theory, globalization should help contribute to the equality of the global economy. Yet this is not the case in reality. Globalization contributes to unsustainable prosperity for a very small percentage of the world’s population. For those in developing countries, it is especially unsustainable. The resources in these areas are consumed at an unstable rate and the environment given very little consideration. The workers are treated as if they are expendable. The smaller economies of these countries are vastly taken advantage of. For these reasons, globalization contributes to sustainable prosperity to a small extent.

Globalization has done a lot over the past hundreds of years to influence income and wealth inequality in the United States. Once different nations started to trade goods and services with one another it was a whole new world. Trading with different states is one thing but trading all over the globe became a huge deal. It is the reason some people in the world are as wealthy as they are. Starting years ago during the industrial revolution up until now globalization has caused major changes. Starting back then people who owned small shops and then could trade and invest in larger manufacturing changed their lives. They then became some of the wealthy people during the industrial revolution then the people who used to be their equals now

In the view of a supporter, globalization means a taste of culture, access to goods, more choices to choose from, and boundless opportunities in cooperation. Towards opponents it is social injustices, exploitation, and terrible working conditions that causes people to go against. Over time income inequality has been growing a distance over the years. There are debates and arguments to this day about the income inequality. Within the nation, opponents are voicing that “freer trade and investment allows international companies to close the factories in high wage”. While the low waged/ developing nations are moved leading to the increase in wage in both blue collar and white collar. In between nations, there are claims of whether globalization

The global wealth distribution continues to be defined by a massive inequality of wealth between advanced capitalist countries and the least developed countries. The gap between the thirty richest and the thirty poorest countries, in per capital income has grown from 17:1 in 1980 to 27:1 in 2002 . Despite massive aid and trade liberalisation programmes, development strategies in poor countries have not resulted in sustainable economic development but have instead resulted in ‘massive underdevelopment and impoverishment, untold exploitation and oppressions’ . Despite the success of some newly industrialising countries, most notably China, many of the world’s poorest countries continue to be reliant on the export of raw materials and agricultural

Globalization is often cited as a harbinger of income equality. We are currently in the midst of what is known as Globalization 2.0 or the second wave of globalization. Globalization 2.0 has been occurring at much more massive scale than the first wave and at a much more rapid pace. That being said, official statistics show that income inequality has risen spectacularly as measured by official statistics, indicating a correlation between globalization and income inequality. However, there are strong arguments that the official statistics are not reflective of the entire truth of the matter. In a paper on inequality and prices, the authors

Economists deem income inequality within developing countries as a “dangerous” and concerning issue. Researchers, politicians, and economists all have varying views on the subject; each with their own opinion on the causes of and solutions to income inequality. This essay reviews the current research surrounding income inequality while also incorporating a personal opinion on the matter.

Inequality appears frequently in daily life; from children being discriminated against others in schools due to the fact that they have a low status compared to rich people, to workers not receiving the same rights, it generates a negative outcome in most scenarios. There are many people living in the world who are classified under two categories; the ones who are wealthy and are able to afford more than enough of their needs and plenty more of their wants, and the ones who are just about surviving with their basic human necessities. There are numerous factors which are a cause of rising gap between the rich and the poor, major issues being education, taxation, unemployment and being a member of minority ethnic groups.

The world is a far more connected place today than 150 years ago. The rapid rate of technological advancement which in turn accelerated international trade has led us to an age where states are politically, economically and culturally interconnected. Now, to many, this seems like a good thing, and in many cases it is: the ability to talk to someone instantaneously from the other corner of the planet, to buy something from china and for it to arrive within a week… are all positive things that stem from globalization, but underneath these superficial changes the world has seen a pretty big economic shift since the dawn of the neoliberal era and the rebirth of globalization. To be able to properly analyze the effect globalization has had on inequality we have to look at how we define it: Most neoliberalists tend to look exclusively at extreme poverty as the reference point for inequality and therefore the only objective to eliminate, in fact the World Bank’s online entries about poverty (http://www.worldbank.org/en/topic/poverty/overview,2016) talk only about the extreme type of poverty, whereas most critics of neoliberalism underline the need for economists and politicians to also focus on relative poverty and the fast growing gap between the rich and the poor. There is also the question of who we are referring to when talking about inequality; inequality can be discussed both at state level and at an individual level.

Globalization is also a factor in income inequality. This term refers to the increasingly global relationships of culture, people, and economic activity. This contributes in the

Another major impact of economic globalisation is the increase in income inequality and poverty. Despite the increase in the global economy and more jobs, it does not necessarily mean that there is global equality. In fact, the gap is increasing between the economic classes of rich and poor. The Gini Coefficient is a statistical measurement that measures the inequality among the levels of income. Low inequality lies between 20 and 40 and high inequality lies between 40 and 66. Despite Asian countries such as Indonesia, India and China reducing poverty levels, the income inequality is still significantly high with India sitting on 34 Gini points, Indonesia on 40 points and China on 45 points (Keeley 36). This high rate of income inequality can be seen as a result of strong economic globalisation in urban areas, whereas rural areas remain the same. An example mentioned in Income Inequality: The Gap between Rich and Poor highlights how the inequality in China and India includes access to healthcare, jobs and education because of economic globalisation (Keeley 37). Income inequality is a result of economic globalisation which boosts the wealth and income of the rich upper class, whilst leaving the lower class to struggle and find other methods to gain income, such as working in factories and being exploited through human trafficking.

The question under consideration is “can globalization reduce poverty around the globe, and should this be the aim? Globalization is characterized as an unstoppable cross-border movement of goods, people, ideas, and economic activity that leads to greater economic interdependence amongst states and integration of market forces across territorial boundaries. The cross-border movement of financial securities, technology, and information, allows various state and non-state actors to enhance their competitiveness globally as well as create better economic conditions within state boundaries to spur rapid economic growth that, if governed correctly, may improve the general quality of live for people.

The author describes the effects of globalization on income distribution in both rich and poor countries. International trade theory implies that increased trade and foreign investment should make income distribution more equal in poor countries, but the writer’s research has proven the opposite. Globalization portrays the diverse ideas of exchange of goods and services across nations’ borders. The primary objective of trade is to maximize the gains from trade for the parties engaged in the exchange of goods and services; it affects the livelihood of free countries, meaning that the lower the income the lower the life expectancy is. However, Milanovic argues that when looking at globalization’s effects we tend to neglect the poorer countries.

n the age of globalization, the rich and poor divide has grown into a chasm. Richer and more developed countries enjoy access to technology and a higher standard of living, whereas the poorer and less developed countries are struggling with poverty, malnutrition and lack of basic amenities.