Globalization Generates Poverty

1930 Words Apr 24th, 2005 8 Pages
What can two dollars buy you? A small coffee at Starbucks, a candy bar, bag of chips, and a soda, a slice of pizza. For nearly three billion people, approximately half of the world 's population, two dollars a day is all the money that the person has to live on. Moreover, of the 2.2 billion children in the world, 1 billion grow up in poverty; 640 million without adequate shelter, 400 millions with no access to safe water, and 270 million with no access to health services (UNICEF 2005). One proposed reason for this harsh reality of high poverty rates is globalization - the growing integration of economies and societies around the world. The claim that globalization generates poverty has been the focus of many debates for the last twenty …show more content…
However, although globalization has helped several countries, "in some developing countries, foreign aid and investments are not relieving widespread poverty, and policies forced by global institutions like the International Monetary Fund (IMF) and World Bank have created more harm than good, because the policies are based on models constructed by the developed countries and are not customized for each developing country 's situation" (2003).
Globalization has generated significant opposition because of concerns that it has decreased wages in all countries and decreased the number of all types of jobs, of both uneducated and educated statuses, that are available in developed countries. Statistics have shown that an increase in product trade with unskilled-labor-abundant, low-wage countries leads to an increase in the wage rate of skilled workers and depresses the wage rate of unskilled workers (Eckel). For some time, factory jobs have been moving to lower wage countries. More recently, high-speed Internet connections have allowed clerical and white-collar jobs to be done much more cheaply in places like India. Many times when a person calls a customer service line for an American Cooperation, they will be greeted by a person with an accent not native to the United States. This is because companies are hiring people from abroad for much less than they deserve and much less than they would have to pay people
Open Document