Question

PLEASE WRITE A CRITICAL COMMENT TO THIS ESSAY IN ABOUT 150 WORDS. tHANK YOU!

Before talking about economic globalization and its impact on poverty, it seems vital to define the concept. Globalization is a worldwide and universal process of global integration of the countries in all areas that evolve a society (Economic, political, technological and socio-cultural); That is why it is cataloged as universal, because it covers all aspects of the life of a human being in a society. In this way it is to be understood that this phenomenon has extensively modified the way in which a country develops in all its fields and the effect on the individuals that comprise it. Given the above it is feasible to understand why economic globalization could affect poverty in a negative way. Although this phenomenon has many advantages that open up new horizons for both developed and developing countries, there is a counterpart of disadvantages that denotes an increase in inequality and therefore in poverty.

Despite the impressive advances in the scientific and technological field, its benefits are for a small part of the population resident in the most developed countries, while another part of humanity survives in conditions of poverty and misery. Developed countries with great potentials and economic reach are imposed on those developing countries with smaller economies. This creates a great economic imbalance that contributes in part to the increase in unemployment in developed countries because multinational companies open offices in developing countries, where labor and raw materials are cheaper. Likewise, in both developed and developing countries, economic inequality among citizens is visible, since large companies have greater benefits and financial capacity than those of smaller size and power. The increase in the social inequality of a country generates even greater poverty because it limits the access and use of various educational, technological and economic resources in many social groups in poverty.

The differences between the rates of extreme poverty are related to the rates of economic growth, with this it is clear that globalization is reshaping social stratification in nations. The data from the Globalization's Effects on The Global Poor video indicates that globalization has generated effects of social stratification inequalities at a global level, generating a reduction in income for the general population and increasing the wealth of the countries' elite class. Given the above, it could be said that the economic globalization seen towards the future has advantages and disadvantages that will affect the way in which society perceives its effects. Thus, for some, the best effect may be the increase in living standards in developing countries. And for others, even for developed countries, there is an increase in economic inequality, poverty and unemployment.

Answer 1

In the light of above article following are certain advantages and disadvantages of Globalization:

Advantages:

• It helps pooling of resources. Suppose if research related to space has to be done then it will be very difficult for single country to spend the whole amount because of huge expenses whereas several nations can contribute and can conduct a meaningful research on space and technology.
• It helps in providing better wages to the labor. Because of globalization labor can move freely from one place to other so, they can get a proper wage rate for their work.Example Many Indian software professionals are moving to US because of high income prospects in US as compared to India.
• Globalization has led to ease of communication. People from one country can easily move to other country for better opportunities relate to both personal professional field.
• It removes tax havens for wealthy individuals and businesses. Globalization eliminates the administrative structures in place. As a result wealthy and rich people will not be able to hide their funds and it can be taxed properly.This will result in greater transparency and even rich individuals will be treated as normal citizens.
• It encourages free trade. Globalization has opened any opportunities for the countries to engage in free trade and give boost to imports and exports by simplifying the trade procedures.
• It creates more job opportunities.Globalization has raised standard of living and has increased demand which leads to more production and employment. Also, Labor in developing countries is cheap so many big organizations are opting for outsourcing which reduce their cost of operations and also provide employment to unemployed people.

Disadvantages:

• It encourages offshoring more. Example If US companies find it cheaper to get work done from India then they will be more interested in outsourcing. This will have adverse affect on US citizens as their job opportunities will be given to Indian people. This may lead to increase in wages in developing countries as compared to developed ones and can increase inequality in the long run.
• It benefits wealthy people more as compared to the poor people. Value-added taxes above 25% exist in some nations. Tariffs above 70% exist for some products. Full advantages of globalization are still to be achieved. Rich are becoming richer as they have power to dictate on poor ones and can have huge bank deposits. As a result households having fixed income have to struggle to maintain proper standard of living. Rich and powerful nations can easily dictate their terms to the poor nations.
• It results in increase disease transfer. Since people can easily move from one place to another, similarly diseases can also move along with them. AIDS, Dengue, Syphilis and many other diseases have spread to large parts of world due to globalization.
• It can reduce social safety net programs. In terms of poverty line the people living in other parts of the world will be considered more poorer than those living in US. As a result priority of social benefit programs will shift to more poorer ones.
• It will lead to unjust and unfair system of politics. Rich and powerful people can easily influence politicians and government and can get their demands met.
• It has resulted in unfair consumption of resources.The rich countries of the world are consuming more resources as compared to poor nations.

In nut shell, we can conclude that there is no denying fact that globalization has increased standard of living and prosperity but at the same time it has resulted in inequality in distribution of income and led to increase in poverty , unemployment and diseases. It has created a gap between developing and developed nations.