Inequality And Poverty And Inequality

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In the last twenty years, known as globalization years, poverty and inequality have both increased. The number of poor people has been cut in half over the past twenty years but there is still enormous inequality as well as poverty in the world. Globalization generally is expected to reduce poverty through faster growth in more integrated economies. Countries like China and India have benefitted from careful and managed globalization and continue to improve the economic growth in their economies and as a consequence poverty in such countries has gradually decreased. Nevertheless, poverty and inequality are still prevalent in the economies of nations (Heshmati, 2005). So what is poverty and inequality and how are they affected or linked with globalization? Figini and Santarelli (2003), define poverty as a multidimensional problem. It is a situation in which a major part of the population lives at or below income levels sufficient to meet their basic needs. The extent of poverty depends on two main factors; i. The average level of income ii. The degree of inequality in its distribution Most of us have heard that those individuals known as poor have an income or expenditure of less than 2 dollars per day. Inequality on the other hand is defined as the disparity of…show more content…
Lauder Institute of Management and International Studies (2013) explain that the impact of globalization on poverty reduction has been uneven and even marginal in some regions. A question often raised is whether the actual distribution of gains from globalization is fair and in particular whether the poor benefit less from it. Researchers have argued that inequality in the aspect of gender inequality has led to a reduction in poverty and inequality. For example, globalization in some parts of the world has led to improvements in women’s education, health, legal rights, equality of roles and socioeconomic status. However, progress in the Middle East and Sub-Saharan Africa continues to be rather

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