Graphing income distribution around the world revealed two peaks – one at $15 a day, driven by the developed economies of Europe and the Americas, and a second – much larger – peak at $0.80 a day, primarily due to the high poverty levels in Asia and Africa . These two dramatically distinct peaks demonstrate the pronounced regional economic inequality that then existed between developed and developing countries. Today, there is only one peak on the graph, at roughly $7 a day, driven by the industrialization of Asia . However, while inter-state regional economic inequality is decreasing, intra-state inequality between regions is increasing in nearly all cases. In this paper, I will analyze this changing regional inequality from both a intra- and inter-state level and will hypothesize the implications these changes will bring to the Global Order over the coming decades .
The book contains more than a decade of research by Mr Piketty and a handful of other economists, detailing historical changes in the concentration of income and wealth. Piketty (2014) who is hailed to be the “modern Marx” defines Economic inequality as followed: “when the rate of return on capital exceeds the rate of growth of output and income (…)”. He also states that “(…) capitalism automatically generates arbitrary and unsustainable inequalities that radically undermine the meritocratic values on which democratic societies are based”(p. 1). Piketty (2014) doesn’t take things as far as Marx, who saw capital’s growth eventually strangling the economy and bringing on its own collapse but agrees that the forces of capital accumulation will leave us with a society radically less equal, less mobile, perhaps even less democratic which is contradictory to Milton Friedman s view of income inequality. Milton Friedman believes that one doesn’t have to be concerned about inequality in a free market economy.
The Eskom disaster has now become a brake on the economy and the only long-term solution will be to find new managers for the usefulness, rather in the private sector. There comes a time when even governments have to admit to their failures and find a better way.” Cost management- Economists have reported that load shedding by Eskom is going to be hugely harmful to South Africa’s economic growth. “The cost to the economy during stage 1 load shedding is equal to10 hours of blackouts per day for 20 days a month, which is R20 billion per month. Stage 2 load shedding, using the same time constraints, costs the economy R40 billion per month, while stage 3 is estimated to cost South Africa R80 billion per
A large proportion of this increase is a result of immense purchases by eastern Asian monetary authorities, designed to prevent their currencies from appreciating relative to the dollar. This deficit is the biggest difference between globalization past and globalization present. A hundred years ago, the global hegemon-the United Kingdom-was a net exporter of capital, channeling a high proportion of its savings overseas to finance the construction of infrastructure such as railways and ports in the Americas, Asia, Australasia, and Africa. Today, its successor as an Anglophone empire plays the diametrically opposite role-as the world's debtor rather than the world's creditor, absorbing around three-quarters of the rest of the world's surplus
Economic globalization is characterized by the growing interdependence of national economies around the globe (Dollar 2005). Increase in economic interdependence refers to the expansion of cross-border trade, international investment and migration. In the twenty first century national economic development is hardly possible without integration into the global economy. As a matter of fact developed countries have been dominating the process of economic globalization and are used to be seen as its main driving force. Thus, in the mid-90s developed countries were responsible for nearly 82% of the total value of cross-border trade in the whole world in addition to over 80% of the world’s total value of foreign direct investment (FDI) (Shangquan 2000).
Income inequality is a widespread occurrence affecting the global community. Income inequality is the gap between the world’s top income earners and the rest of the population. The ethical question is whether the world's top earners should help those with lower incomes. This debate has become more relevant in the last three decades due to the unnatural increase in the income gap. Without the support of the bottom 99 percent, democracies will lose their functionality.
Socialism or capitalism Capitalism or socialism, which economic system would you prefer? Michelle Goldberg wrote an article based on why Millennials Hate Capitalism the name of the article is “No Wonder Millennials Hate Capitalism.” In the article Goldberg claims, that tax bill passed by the Senate is another capitalist failure which would make the rich richer and the poor poorer. Actually, capitalism allows you to choose your own fate, and write your own script without the government determining who wins and who loses. While socialism seems to always fails over and over. While it promises equality and security, all it brings is tyranny and poverty.
The brief statistical data presented in the introductory part of global poor shows that about one third of human deaths, 18 million each year, are due to poverty-related causes. Pogge argues that we are violating the human rights of global poor is by arguing that globalization and supranational institutional arrangements has created the good condition for global poor and the percentage of the very poor people has been declining. I write to support this statement that the percentage of the global wealth and living standard in the affluent countries are rising up that is contributing to create the huge gap between them rather than a living standard of those people are inclining. There is no any alternative of the supranational evolved yet to compare globalization is contributing to decline the percentage of the global poor whether the violation by imposing the current institutional
Over the past decades poverty has being a challenge to the humanity. The inequality in the resource distribution (such as lack of health care, education and financial support, job opportunities) has led to many unfavourable consequences. Poverty has established its position very wisely, that even the rising economies cannot get rid of it. A very precise example for the above case is India. Economically talking India is known to be the rising-star.
China is the leading country in the world regarding to its GDP and the economy. It is also known to be the most-visited countries. Shanghai, as the center of finance in China, the rate of tourism and expats is high, although it is noticeable that it had been decreasing since the last few years. The level of tourism has declined since the last time that Shanghai’s air quality had refreshed its record. Frano Llic of travel agency in Germany said, “Tourists have been put off by reports about smog and others problems”.