Globalization: Global Poverty And Inequality

Globalization is the integration not only in terms of economies, for example, goods and services, technology, financial flows but also of societies such as communication, ideas, information, and people (Wade and Robert, 2013). Although globalization brings some drawbacks to developing countries, it creates many advantages through multilateral trade agreements; non-tariff barrier; elimination of interest rate ceiling and the opening of capital markets. Some researchers argue that globalization is the main cause of any increase in poverty and inequality. This essay illustrates the opposite concept that global inequality no longer rising and world poverty may be declining.

First of all, globalization accounts for the international equality. Global

The liberalization of trade implies cheaper import; As a consequence, the real costs of consumption for the poor would be reduced. Not only cutting down the costs, trade liberalization makes economies more competitive. Because of this, developing countries can develop quickly to catch up with their richer counterparts, and dis-equalizing could be minimized. Research by Dollar, David and Art Kraay (June 2014) supports that the top third of developing countries with regard to increases in trade to GDP in the 1980s and 1990s grew faster (3.5% and 5%) than in the 1960s and 1970s – faster than the developed countries. The average growth of China, East Asia, and India in the last three decades brought their populations closer to the income of

Poverty is often defined in absolute terms of low-income (World Bank, 2015). According to Dollar, David and Art Kraay (2014, p.372), the percentage of the poor in the world declined between 2013 and 2014 from approximately 26% to 20% using Word Bank figures, and the absolute number from an estimated 1.3 to 1.1 billion. Especially in India, the number of poor reduced more than 600 million. Not only India and China, the number of poor of the “globalizing” group include Brazil, Chile, Costa Rica, Malaysia, Mexico, The Philippines, Thailand, Vietnam, and more recently in Uganda and Mozambique were also felt of effectively: less than 800 million from 2013 to 2014. The data of World Bank demonstrated clearly the aspect: one of benefit of globalization is poverty