Globalization And Inequality Essay

With no doubts it is now a fact that globalization has contributed to prosperity throughout our world however, more concern should be placed on how it affects inequality. Globalization is defined as the growing integration of economies and societies around the world. Therefore, it deals with capital and investment movements, trade and transactions, dissemination of knowledge and the migration and movement of people (International Monetary Fund, 2000). The process of globalization mainly increases the economic interdependence among nations and has the ultimate goal of poverty reduction. Although globalization did bring many positive changes to our world for the high skilled people, it doesn’t mean that it was something good when considering

Short term capital movements were led by financial openings in developing countries. This can be explained from past experiences where income inequality and poverty became worse following the financial crises. Also, the efforts of developing countries to attract foreign direct investments made them deteriorate workers’ conditions. The deregulation of the labor market with the neoliberal reform also increased the unemployed and the share of irregular workers, leading to a rise in wage inequality Even until now, there are many different opinions on whether globalization has any correlation with inequality. No one has the answers to this question with enough empirical evidences but even a mere connection between the two is something that should be considered. International trade and productions definitely helped grow the average wages of many countries meaning that it definitely has positive factors. However, just because globalization brought many positive changes to the lives of many people, the minorities who lose from it, in this case the low skilled and low wage workers should not be