12 April 2013
One common platitude in the media is that globalization is making the gap between rich and poor. The globalization can cause winners and losers by international evolution of capitalism. Even in advanced country, it is challenging to replace the losers from this, mechanism, and it is even more challenging in the developing countries, where government support is not as easily available. I strongly would state that there are plenty of profits for all of us that can be made by growing globalization, but government scheme needs to make sure that those people who are in a worse situation share in these gains. From many different aspects, globalization can create hardships for the poor in developing countries but it also accelerate opportunities which some countries can utilize and others do not. It is mainly depending on their domestic political and economic institutions.
Globalization inflate the size of the market. It is common knowledge that the size of the market determines the range of division of labor which contribute productivity. Therefore, globalization is beneficial as it expands productivity. This is not only a hypothetical affirmation, but also an factual statement. When we look at what the poverty numbers over the last three decades in developing countries tell us, new poverty estimates published by the World Bank reveal that 1.4 billion people in the developing world (one in four) were living on less than US$1.25 a day in 2005, down from 1.9 billion (one in two) in 1981 (world bank) “Data are never perfect, though they are getting better over time” said Shaida Badiee, Director of the Bank’s Development Data Group.
World Bank, the International Monetary Fund (IMF), the World Trade Organization(WTO), their inmost purpose in increasing economic globalization is to help the world's poor. More accurately, they confront that eliminating boundaries to corporate trade and financial investments is the best...