o Seen in FDi and trade
o Regional bloc forming/protectionism
o Economic globalization used as political justification, but reality shows no
necessity
Regulation is possible, alternatives are available
o Martell-> nation-states could create alternative, could counter economic
globalization, alone or in alliances
Welfare at home, regulations, taxes-> also internationally invest in
environment or the poor
Economic globalization sceptics could lead to these positive directions
H8 Global inequality-> is globalization the solution to world poverty?
Poverty and inequality are different things
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How you measure them is important
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What factors might improve them?
Globalization in this context is usually neoliberalism
Economic inequality is a matter of sociological importance
- Power, inequality, conflict are often bound with economic power
- Economic inequality affects chances in society, shapes cultures/politics
Different types of inequality
- Economic
- Education, health care
o Can be affected by culture (women seen as less) or politics (does government
invest in it)
- Communications, technology
The role of China and India
- Largest populations and fastest developing countries/economies
- It is important to disaggregate “the developing countries”-> inclusion of developing
India/China can skew image
Globalization and the poor
For poor countries-> often integration into the world trade and import/export (Washington
consensus)
- The view that this will lift them out of poverty
,World Bank and IMF offer financial support, but there is conditionality of structural changes
(adjustment) connected to it
- Often requires liberalization
o Allow free movement of capital, investment, competition
- Lowering public expenditure
o High public expenditure could lead to higher taxes, which leads funds away from
private businesses
- No more subsidies on basic goods
o Enables foreign competition
- These views are defended by saying that the long term benefit for the economy is great,
even if the short term impact is severe
o But it is important to remember that more open, liberal economies is a great
thing for foreign companies and rich economies
Effects of the Washington consensus have been:
- Poorer public service
- Unemployment
- Rise in cost of living
o All as a result of loss of protection for home businesses, low public spending, and
the end of price restrictions
Some see Washington consensus measures as imperialist
- Benefiting rich countries-> access to new markets
- Competition from rich is too much
- SAPs might be detrimental to those economies
o Recently, there has been less conditionality attached to them
Global poverty
Way less people living on less then $1.25 (extreme poverty)
Sill way too much, just like hunger, under-five mortality and life expectancy
Uneven improvements in poverty have occurred
- Most in Asia (China)
- Most other parts the situation is more grim
- SSA most dire
- Women are more likely to live in poverty
o Access to work is bad, lower pay, lack of social protection, access to property
Climate change accentuates poverty as well
- Most emitted by developed countries
- Most effect in SSA
, Global inequality
Inequality can rise when poverty falls
- Some say; If the poor are improving, but inequality rises, why should we care?
o The rich don’t always deserve it-> luck, inheritance, exploitative practices
o Poverty could be solved by redistribution of wealth/resources
o Social consequences, unhappiness, crime, conflict
Inequality and poverty need to be analyzed separately
Comparing country to country is an option
- Growing inequality after 1980s
- Growth in Asia, but not in Africa or Latin America
- Growth rates are converging, but due to the starting point and the absolute income
differences, inequality gets bigger
Comparing countries while accounting for population is an option
- Looking at it like this, the global income distribution seems more equal, but this hides
the global developments of extreme inequality (by including China and India, which
have almost half of world population)
World inequality has become more complex
- A new international division of labor, new stratification in global inequality has arisen
o China, India, South Korea, Hong Kong, Taiwan, Singapore, Japan, Thailand,
Malaysia have pulled away from the poorest countries by focusing on export
o Dominican republic, Poland, Turkiye, Mauritius developed by foreign
investments
o Brazil, Chile, Mexico grew through import substitution
o Latin America and Africa remained poor
Gender inequality and globalization
Globalization is talked about without gender distinctions in experience-> if women are
considered, they are viewed as passive observers of globalization
Focus on paid labor, not unpaid female labor
International female labor migration has taken over men (nurses, nanny, catering, domestic
work, but also sex work)
