Globalization And Poverty : A Panel Data Study Essay

Globalization reduces poverty and brings up the life expectancy. According to the World Bank, in 1994 India's poverty headcount ratio was 45.3% and in 2012 it has gotten two times better. Another improvement is Ethiopia. the World Bank headcount poverty was 45.5% in 1995 a study in 2011 shows it has gone down 29.6%. Globalization has helped other countries build up their economy because once they have a factory that originated from a US company they can give jobs to people in the different country.

From all of this is plain to see that globalization can have positive and negative effects upon a society, but a country that refuses to open its doors to the world face economic stagnation and poverty for its people. Those

There are some concerns about globalization and how it contributes to poverty and inequality in developed, and developing countries. First, let’s look at the ground rules set by the United Nation General Assembly. Universal Declaration of Human Rights states that equal and inalienable rights of all people of the human family is the foundation of freedom, justice and peace in the world.

According to the World Bank, from 1993 to 1998, poverty rate has reduced by 14 percent in developing countries, similar to about 107 million people. This may result from receiving foreign investment that plays an important role in local economy growth. For example, the proportion of population living in poverty in India decreased by half in the two decades, from the 1970s to 1990s, while the number of Chinese in poverty declined by approximately 210 million during twenty-one years, from 1978 to 1999 (Healey 2008). In other words, the standard of living is improving due to the benefits of international economic activities.

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.

On the contrary, taking a more critical view on the effects of globalisation, the findings seem to differ. The fact is that globalisation is pretty much centralised on only a few countries run by a handful of governments. China and India, For example, have been the only two countries to realise any advancements in terms of development and poverty eradication through globalisation, whilst trade openness has led to a rise in income inequalities and generally very uneven gains in the South American regions. And one entire continent, Africa, has actually become more marginalised (Tsikata, 2001, p. 12). The governmental and economic institutions of the developing countries, especially the latter, put them at a disadvantage where weak political, economic and legal structures led to wide spread corruption, conflict and insecurity. Whereas, developed countries already had good infrastructures coupled with high levels of skilled labour, managerial competence and advanced technology making it almost impossible for developing countries to compete. For example, the Japanese government vs. Indonesian government car industry case at the WTO (Kompas, 19 July 1999 ed.).

There is no doubt to reveals the fact that globalization has benefited more than developing countries. Globalization is misused or over used. The difference between rich and poor continued from the beginning of time. Nearly thousand years ago people use barter system to fill the gap between demands and supply. Due to lack of technology and lack of communication system most people sell and buy products within the boundary of a country but today recent era is a totally different era. Global currency, global language and advance technology provide a platform to stay connected all over the world.

This shows that due to the international investment and trade many poor countries succeeded and their Poverty rate fell. For example in China, the poverty rate fell 68 percent between 1981 and 2004. This evidence shows that due to the globalization poor countries are improving their country and also poverty has sharply declined. This is another positive impact of

Global poverty is a complex issue that cannot simply be explained by income or economics. By using a sociological perspective, global poverty

The purpose of this review is to investigate the claims made by economists on why poverty is a reoccurring factor in developing areas, and whether or not that particular claim is indeed one of the reasons that these areas suffer from poverty. Poverty traps are one of the prominent factors in the reasoning behind poverty in developing areas; however, there are also many other supporting factors that reinforce poverty. Shepherd (2007) believes there is a point of equilibrium in

This paper will discuss poverty, the different types of poverty and their definitions and who is affected by each type of poverty. It will look at the some of the major reasons why poverty exists and what causes poverty, like such things as inequality, stratification and international debt. Some of the impacts of poverty will also be analyzed from a national and global perspective; things like education, literacy rate, and crime. This paper will demonstrate that poverty affects almost everyone in some form or another and exists because those with power and wealth want and need poverty to exist to force a dependence on the wealthy. A few of the main

Fast-growing economies in the developing world have done most of the work. For instance, an article by the weekly publication The Economist states that between 1981 and 2001, China lifted 680m people out of poverty. Since 2000, the number of the poor living outside China has been “cut” by 280 million due to the growth of developing countries (“How Did..”). Surely a great feat for these developing countries and humanity in general. Finally, the most colossal problem that has plagued humanity for decades is undergoing a consequential decline and it is reaching its final lap. Does this signify that poverty will no longer be a threat to the world universally? Are we no longer going to discern ads showing children with no access to fundamental amenities suffering from malnutrition and other epidemic diseases? These questions do have answers. A postulation that poverty is reducing and will subsequently be eradicated is infeasible to conclude despite recent statistics exhibiting a remarkable decline in the rate of poverty in the world. We must consider the methods utilized by these international financial institutions in arriving at these figures. Withal, even if these statistics are true, a few countries still face major challenges in eradicating destitution.

Globalization is the proximate and multidimensional set of political, economic, social, and technological integration around the globe. The increasing interconnectedness among countries can be seen through the prism of globalization. Essentially, the lives of people living in distant cities like Bangalore and Silicon Valley are brought closer as a result of this phenomenon. Drivers of this adjacent include; the expansion of trade, technological exchange, labor movement and investments (Stearns 2017). The discourse of globalization encompasses several multidisciplinary themes. The paper, however, concentrates on the economic factors, “which, entails the closer economic integration of countries of the world through increased flow of goods, services, capital and even labor.” (Stiglitz 2007: 4). The paper focuses on economic globalization and elucidates whether the globalization has reduced poverty and inequality or had reproduced the reversed implications. Meanwhile, the paper reveals if the developing world has benefited from the set. This seems to be the central question that policymakers, development economists, and politicians have been grappling with for years. The paper is presented in three parts. Part one reflects on the historical context of the problem statement. The second part compiles literature and juxtaposes with cases to corroborate the globalization-poverty-inequality triangle. Finally, the conclusion represents the author’s viewpoint on the

One of the most common claims made against globalization is that it increases world poverty. Often this claim is supported with a statistic showing the high rates of poverty in a given

It is fair to say that the ones who benefit the most in economic globalization are developed countries whose social productive forces are highly developed ((El-Ojeili, C. & Hayden, P., 2006.). However, it is difficult for developing countries that are relatively