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Antiglobalizationists are a growing group of advocates who claim that the past two decades of free-market, pro-globalization policies have made the world worse by making the poor poorer. The World Bank has even backed up this statement and expressed concern that the percentage of those in poverty is decelerating. ... [10]
Most of the worlds poorest countries, with their low incomes and incompetent governments, are making minimal economic progress. ... Out of the 27 countries who achieved growth, they were only able to manage a 2. ...
This situation is in sharp contrast with the early economic and political optimism. ... [3] Even Nobel Prize winner Simon Kuznets believed that not participating in the globalization mainstream was acceptable. He observed that although economic inequalities often widen when a country begins to industrialize, but predicted that it narrows once development has matured. [2]
The contrast between the previous early optimism and todays grim reality has led to a debate over a series of questions. ... What, in retrospect, caused the failure of the nations to achieve the economic status predicted for them decades ago? ...
By observing the socioeconomic inequality in the societies in the globalization era, it becomes strikingly clear the unfairness that is produced from the borderless system. ... This paper has four chapters that take an in-depth look into the problem of socioeconomic inequality. Part one defines globalization and notes the three developments that distinguish it from other eras. ... Part three examines the positive and negative effects that globalization has had on some nation-states, and part four attempts to suggest governmental changes which could close the inequality gap and maximize the efficiency of the fragile global economy.
What is Globalization?
Major technological innovations have occurred in communications and transportation technologies which reduce the costs of keeping effective economic links on a global scale. ... The result is that huge areas of the world economy are now open to capitalism to a degree never before seen by previous eras.
With the growing extent of economic interactions between people in different countries, there is more trade, foreign transactions, foreign direct investment, and international migration of people. ... Globalization is the accelerating rate of economic interaction between people of different nations that leads to a shift in the relationship between nations and the international trade. Three developments distinguish the globalization era – the shift in the manufacturing industry from developed to developing countries, the exponential growth in gross international economic trading, and that the size of a nations government has increased in proportion with the financial market.
Growth of Manufacturing Capacity in Developing Economies. An expansion in the effective supply of workers capable of producing goods has allowed workers in advanced economics lose bargaining power and exerts downward pressure on wages in the advanced economies. This has led to a significant increase in the standard of living in China, whose industrial sector has seen rapid growth in the past few decades. ... The net financial flow has not changed significantly in the past 30 years. However, since the emergence of deregulation in financial markets, there has been an exponential increase in gross flows. ... Governments promote economic stability, finance socioeconomic equality programs, and subsidized favored industries. ...
THE CAUSE
In his book Globalization and its Discontents, Nobel Prize-winning economist Joseph E. Stiglitz offers his views of what went wrong with globalization and the cause of socioeconomic inequality as a result. Following World War II, there was a flurry of creations of new international institutions designed to improve global development. ... Three other UN-independent organizations, the Food and Agriculture Organization, the World Health Organization, and the World Bank, soon began working with the developing world after they had helped repair war-torn Europe. ... The IMFs initial purpose was to preserve stability in international markets by aiding nations to make economic adjustments when they experienced an imbalance of international payments and to prevent inflation.
Approximate Word count = 3086
Approximate Pages = 12.3
(250 words per page double spaced)
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