Poverty in an age of globalization

Introduction

In this age of globalization there have been made great advances by a huge part of the world’s population. Due to this, there is a risk that globalization is increasing inequality, affecting the poor and giving them disempowerment.

In this report we pretend to analyze the impact of globalization on poverty. Globalization has played an important role in accelerating growth andreducing poverty in developing countries.

The impact on inequality is more complex: global inequality is reduced by the restriction of the most popular developing countries in the advantages of globalization but many countries are still behind so there has been some increase in inequality that has a large number of poor.

Trade integration does not increase income volatility; financialintegration, however, can increase the tendency to develop crises which can have a negative effect on the poor. Poverty is associated with negative things like conflicts, diseases and harm to the environment, so societies are benefit by poor reduction. Even though the percentage of the world-s poor has declined, the whole number of living in poverty has not been reduced. The central challenge in today’sglobal economy and society is poverty reduction. They exists a series of specifications that should be followed to achieve this.

Globalization and Inequality

The standards in global inequality depend on the changes on inequality between and within countries. Inequalities between countries have been set by 2 different standards. The difference between the richest and the poorest countries hasincreased widely. A significant number of countries are behind compared with not only to industrial countries but also to developing countries. The income distribution between countries has worsened. Also there has been acceleration in growth in many developing countries so the difference between their average incomes and the one of the industrial countries it’s getting smaller. Even though,inequality inside a country in turn to its population has decreased. While inter-country inequality has improved, inequality within many of the most populous countries, with a large number of poor, has increased.

There is a powerful affirmation that increased openness to trade and investment facilitates the role in accelerating growth and poverty reduction in many developing countries and startreducing overall global inequality. At the same time the lack of openness increases inequality between countries because closed developing economies have done much more poorly than more open ones. The poor development of these countries is not a result of integrating the world economy. On the contrary, it is due to their inability to achieve greater integration. This inability is due to domesticconditions but it also worsens by barriers to integration that are imposed by richer countries. It is not affirmed that a relationship between globalization and inequality between countries is through growth or directly. Periods of growth are often associated with the increase in inequality as they are with declines. As in there is no association between openness to trade and changes in inequality.There are many cases where inequality fell with more trade openness also as cases where it increased.

The rise of the global economy has been accompanied by large increases in international trade, investment, technological innovation and migration. These changes cannot be undone, and they have created new opportunities for economic growth in industrialized countries. But the global labor forcehas expanded fourfold since the 1980s, and supply of unskilled labor exceeds demand. To extend promise to more citizens developed nations should institute new forms of social assistance, with particular emphasis on education, employment assistance and health care. As industrialized countries benefit from globalization, they have a responsibility to minimize conflict, ensure that all citizens have...