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Globalization And Sub-Saharan Africa

Decent Essays
2006)
1) Asymmetric Outcomes: Nayyar (2006) suggests that globalisation has resulted in the exclusion and inequality of countries in terms of the levels of international trade, investment and finance. Not all countries have benefited from the process and there has been a widening gap between the rich and poor for instance countries in Sub-Saharan Africa are not in the picture. Theorist Eric Maskin agrees with this conclusion and suggests that while average income has been rising as a result of more trade and global production, inequality has also increased (World Bank, 2007), by contrast there are arguments that suggest that increased openness to trade and investment has reduced overall global inequality (sph.umich.edu, 2000). (Dollar & Kraay, 2002) suggests that the current wave of globalization, which started around 1980, has actually promoted economic equality and reduced poverty.

2) Role of Technology in Globalisation: Technological advancements contributed drastically in aiding globalization in terms of communication and transportation in both the 19th and 20th century according to Nayyar (2006). With the advent of steamships, railway, telegraph, aircraft,
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Samuelson (1948). Economist Robert Barro (1996) argues that convergence is conditional that is, that if other things are held equal then there is a strong tendency for countries to converge toward a common level of total factor productivity, labour productivity and standard of living (Dowrick and DeLong,
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