• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Has globalisation widened or narrowed the gulf between rich and poor countries

Extracts from this document...

Introduction

Has globalisation widened or narrowed the gulf between rich and poor countries? In 1981, the Brandt Commission reported on world development and concluded that the world consisted of two parts: a wealthy "North" in which a large proportion of the world's wealth was concentrated and a poorer "South" which contains two-thirds of the global population but a smaller proportion of the world's wealth.1 Figure 1 The North-South Divide as shown by the Brandt Commission in 1981 According to Keohane and Nye globalisation refers to "the process by which globalism becomes increasingly thick"2 and globalism has a number of dimensions. So therefore if we are looking at how far globalisation has affected the gap between the developed world and the developing world then it is important to specify which type of globalism that is being referred to. The focus of my essay will be economic globalism and to what extent this has widened or narrowed the gulf between rich and poor countries. This is because the disparity between rich and poor countries is most apparent in terms of wealth. There are two views of globalisation and inequality. The Washington Consensus is the neo-liberal celebration of globalisation and it sees globalisation as a cure to global inequality because it allows wealth to expand to poorer countries. ...read more.

Middle

Also the concentration of investment in these countries has increased by 12 per cent since 1967."5 There are several reasons, which explain why developed countries perform better in the global economy some of which support neo-liberalist views and others, which support socialist views. Firstly international trade has posed challenges for developing countries but yet it is also the key to economic prosperity. Most African nations are dependent on the success of one or two primary commodities for their economy. On the other hand developed nations are able to produce a diverse range of goods and services. Therefore, they do not rely on just one industry or good. "Thus, a trade gap increases inequality because developed countries produce goods and services that fetch much more money than what developing countries produce."6 Also rich countries, particularly the United States of America and countries of the European Union, impose tariffs on goods being imported from poorer countries in order to protect their own domestic markets. What makes countries of the "North" benefit most from globalisation is that they have free markets for exports because many are part of trading blocs, such as the North American Free Trade Association (NAFTA), which allow countries to trade freely without paying tariffs on goods produced within the same bloc. ...read more.

Conclusion

There is more than enough evidence to support the two opposing views of globalisation and inequality. Both views remain valid. Whilst it is true that free markets and liberalisation are crucial to bring countries economic growth it is also true that governments need to be stable enough and must meet certain conditions to embrace globalisation: "Capital moves almost instantaneously into countries with stable governments, progressive economies, open accounting and honest dealing, and out of countries lacking those qualities...Countries wishing to attract capital and to gain the benefits of today's and tomorrow's technology must don the "golden straitjacket", a package of policies including balanced budgets, economic deregulation, openness to investment and trade, and a stable currency."9 On the other hand it is also true that globalisation has enabled new forms of domination to operate. Most evidence however shows that the gap between rich and poor countries is far from narrowing. If anything rich countries are becoming richer whilst many poor countries are remaining poor or becoming poorer. There are exceptions to this and these are countries of South East Asia and some in Central and South America, such as Brazil and Venezuela, whose economies developed a strong manufacturing industrial base in the 1970s. Therefore whether globalisation has widened or narrowed the gap between rich and poor countries it depends on which country is being referred to. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Marked by a teacher

    Discuss the extent to which globalisation has been beneficial to Africa, China, America or ...

    5 star(s)

    This was helped by globalisation as China was able to sell it's output abroad and also purchase various machinery and technology as they earned foreign currency. China could have looked at the UK and USA's policies and how their government worked and thought that they needed to have that as well, this is on of the effects of globalisation.

  2. Marked by a teacher

    Advantages and disadvantages of Globalisation. Need for development.

    4 star(s)

    At the moment the IMF goes for complete liberalization, deflation and deregulation in its SAPS. Also through the WTO we follow the hypocrisy of demanding ldcs open up their markets to our exports and our investments, while we get away with farm subsidies and protect whatever we feel is threatened by their attempts to diversify and industrialise.

  1. Robert Keohane and Joseph Nye have described international relations as exhibiting 'complex interdependence'. What ...

    Vulnerability dependence refers to the "costs imposed by external events even after policies have been altered."(source1 pg13)

  2. Why has the gap between male and female wages narrowed significantly?

    The same can be said in relation to children, as the opportunity cost of working may be greater than what they would be earning from child support. This may be accounted for by the increasing cost of a child, which creates a need for a larger income in a family, encouraging more women to work as well as men.

  1. Why has GDP growth been so slow in Somalia?

    The first is that the recorded national income is likely to be underestimated65. This makes it difficult for the government (or in Somalia's case, the transitional federal government) to correctly identify the true economic status of the country. Accordingly, this will make it hard for the government to implement appropriate

  2. Where does the World Trade Organisation fit in the overall scheme of international public ...

    If this happens, the Mexico Ministerial will turn into a replay of the failed Ministerials of 1982, 1990 and 1999. Above all, it would raise the spectre of Seattle all over again, something that could easily derail the new round for many years and thereby cripple the WTO system.

  1. Comprehensive Anatomy of China

    This "open door" policy has allowed for a vast amount of foreign participation in virtually every segment of the Chinese economy that would have previously been off limits. Legislative Branch The National People's Congress is comprised of 3,000 to 5,000 members that serve 5-year terms.

  2. What as the impact of China's re-engagement with the international community been on its ...

    Joining in the ARF can be linked with the intension of China to re-engagement itself in the international community. It can be explained by this statement; For purpose of the international security institutions, "engagement " is best understood as China's formal participation.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work