Globalization: International Trade And Poverty

Globalization; international trade and poverty.

Globalisation and international trade are two aspects that go hand in hand; as globalisation strengthens or develops, it allows the progression or development of international trade. However, when it comes to globalisation and trade; the direct implications that these activities have on the constituents of these countries is usually over looked. Thus bringing in the third aspect; which is poverty and how globalisation and international trade benefits the impoverished people of society or only works to their detriment.

In simple terms, trade is the exchange of one thing for something else; and as time goes on, the development of trade has progressed from being between two individuals to trade

Because with so many minerals available for to trade; the assumption would be that there is a vast amount of revenue coming into the country. Revenue that can be used to better the economy and improve infrastructure for example. However, we see this through the scrutenisation of Saartjie Baartman; a woman who was known for her buttocks and was exhibited in a freak show by the British and the French. Also to the criticisms of African traditional clothing and customs. This then poses the question that how can a continent that is so ‘rich’ in resources be so poor? Is it not the exploitation of the west? The western society have always taken advantage of the rest of the world and we still see occurrences of this happening today. This scrutenisation is what leads to the exploitation of African natural resources. Where we export raw minerals and then import then at a higher price, usually with a different and more expensive exchange rate. This is due to the lack of skills, technology, and finances to fund the infrastructure needed for Africa to mine, process and transform the raw materials into finished goods. It is this lack of capital and skills which keeps the inflow of capital circulation amongst the rich people of society, and leaving the poor people in the poverty cycle. “Even a transitory loss of income can cause the poor to lose opportunities to acquire human capital through education, health care, and better nutrition and thus can reduce their chances of escaping poverty.” (Bannister, G.J. and Thugge K; 2001). In the article ‘International Trade and Poverty Alleviation” by G. Bannister and K. Thugge; they state that ‘Trade liberalization’; by lowering prices, will create a better playing filed for the poorer communities to access the resources. Furthermore, they go on to say that trade testrictions could possibly be friendlier to the poverty stricken areas. This