Globalisation is the solution to poverty in the developing world. Discuss
Globalisation is the solution to poverty in the developing world.
Is poverty really related to globalization? Oppenents of globalization state that globalization spread wealth and has only hurt the poor. I would like to say that globalization is the solution to poverty in developing country.
Firstly, many state that inequality between the rich countries and poor countries is rising. Globalization makes the poor countries poorer and rich countries richer. This is a over-simplistic view. However, based on David Dollar and Aart Kraay, since the mid 1980s, there has not been sufficient evidence to say that globalization causes inequality (2002). Nevertheless, now more and more developing countires have begun to conduct household income and consumption surverys of reasonable quality. Since most real income are self-produced and not from the economy, these surveys contribute in tracking the amount household actually consumes. China is a good example of this. David Dollar and Aart Kraay said that, “China may have become more unequal, but the income of the poor in China has still risen rapidly. In fact, the country's progress in reducing poverty has been one of the most dramatic successes in history (2002).” Globalization reduced the poverty rate in a several countries, such as India, China, Mexico and many more. China has maintained its position as the highest growth rate for thirty years since 1978. This generated a massive raise in China’s standard living. Without globalization, China would not make the difference it does today (Samuelson, 2008).
