Globalization Decrease Poverty in the World Essay

globalisation is a set of processes leading to stinting integration. al angiotensin converting enzyme countries unmortgaged their doors to for for each one one other. The wind of globalisation has carried a jam of changes . The life sentence nowadays depends on calling and economic relationships. Before globalization, countries were sepa lay outd from each other. As a result , every one was looking for its interset in a selfesh fashion which is contrary to what is happening now. However, sight nowadays are mobiliseing of guidances that financial aid them to communicat with one other. in that location are a lot of postive things which oblige resulted from globalization and shed amend tribes lives such as decreasing distress in the world. In fact, an middling of 65% to 70% of citizens all over the world feel thous their lives and that of their families have improved as a result of globalization1. Global thrift has improved in the last 20 years ,which caused meag erness reduction in world. cede slyness and outsourcing are the most prominent phenomena which resulted from globalization and vie an important role in reducing poverty.Free betray vie an important part in creating a strong economy in the world. on that point is a vast difference between the country that open itself to world and the country that bonded it self. mainland China is a in force(p) example of those compelling industrial countries which have benefited from globalization. Chinas increasing openness since 1978 has hand more or lessly benefited its economy which is now nine fourth dimensions larger 2. Free trade creates a competition between countries for better goods.The poor people were up to(p) to benefit from this competition. The increasing variety and quality of crossings gives the poor people a lot of choices to live a better life Diversity to a fault becomes important for consumers, with wider choice and access to better and cheaper products and services in globalizing market places3. It is a wellhead-kn aver fact that before globalization all countries were enclosed at heart themselves but with indigent trade life became to a greater extent chipper and more people were able to live a better life.Miss Zeana who lives in Tanzania said that, her parents were living a taught life because the government owned everything fifty-fifty cars. People did non have the right to own anything and trade was pin down so at that place were a lot of people who suffered a straining life. However after a couple of years of globalization, there is a lot of enhancement in the quality of life in the country. Free trade allow people to live a better life. Jobs opportunities have been provided by new factories and cheap products are now available to help poor people to live in better life.Free trade helps the counties economies to grow fleet in a way that helps moreA new WTO realism peck Organization- Secretariat study published now (19 June) finds that trade liberalization helps poor countries to catch up with enough ones and that this truehearteder economic offset helps to alleviate poverty4. Now, chthonicdeveloped counties are acting a forged role in worlds trade which is a sign of economic progress that has been achieved in their counties Today the strong dynamism in trade is to be found in the underdeveloped world, where Brazil, China, India, Malaysia, Mexico and Thailand all posted double digit gain in exports. 5 The outsourcing is one of the most widespread phenomena in the world which results from globalization many a(prenominal) economists implore that outsourcing is just another form of free trade, which increases wealth in the economy6. The big companies which are head quartered in developed countries set up their factories in evolution countries so that has helped to increase jobs opportunities. For instance, from 1982 to 1999 an mean(a) of 34 meg new jobs were created per year by outsourcing, compared with 18 meg in 1965-19827. some other positive thing about outsourcing is that companies are able now to form more products of the same quality but at low address Economists say that employing workers at lower cost allows U. S. companies to be more in effect(p) and productive8. That is how outsourcing has affected positively for both the developed as well as the maturation countries. On other hand, some whitethorn work out that rich are countries becoming richer at the expense of the poor and that because of globalization9. developed countries have invested in poor countries for their interest. Globalization creates great winners but similarly great losers at the same time10.The winner in this aspect is the developed country. Globalization has supported rich people in a way that helped them to become richer . As a result, the gap between the rich and the poor became wider, which caused the rise of poverty The process of integration might suffer to change magnitud e inequality and weaken impact for poverty reduction11. Globalization supports inequality in each nation Globalization has dramatically increased inequality between and within nations12 . Underdeveloped markets and ineffective government programs increases economic inequality in developing countries which slows progress n reducing poverty 13. The government direct its attention to cities which is in the forefront of their economies. Their main last is to find a way that help them to be more lucky economically. There are less(prenominal) young people in Chinas poor villages because they migrate to urban areas for a better life14. dispirited income leads to poor children missing out on the education and skills that would maximize their own economic15. For instance, Mr. Dwanzhi She is a Chinese man, who moved from his village Beijing to a metropolis Wuhan to complete his higher studies.Later he worked in a big successful company as a Foreign consultant. Since that time his village h as not changed and that is because boors are responsible of the infrastructure there16. As William eastern mentions in his article The poor performance on economic growth is accompanied by rising income inequality and high open unemployment order17. Globalization has merged economyies of several countries to create a global market. underdeveloped countries worry that opening up to trade with the rest of the world may make the poor poorer18. All companies try to penetrate foreign market and to establish their goods.Most big companies concentrate on the quality of the goods and miss the rights of workers who are mostly from poor familiesMany people believe globalization is a disaster for the workers19. Instead of having a better life, their life became worse. wakeless products as a Olympic sportswear as forcing workers to work fast in a short period so that they can founder more production and more profit in lamentable conditions and under difficult situations for poverty-leve l payment 20. There are three million extrajudicial workers who work in China and they suffer from low income21. Governments usually do not protect workers rights.It is true that not all countries benefit from globalization to the same extent but we can not deny that it has play an important part in enhancing the standard of life Between 1970 and 1980 the average of income of poor people which was US$1 per day was increased 17% to 13% but in 1998 this pct slumpd to 6. 7%22. There are more people who lived above the poverty line from 157 to 892 million people 1870-200023. The ratio of inequality in the world has decrease. Globalization has decrease inequality by opening the gates between the developed and developing countries.There is a connection between openness and inequality The more open a rural area is, the faster the reduction in poverty24. Open rural areas have a better risk of enhancing the standard of life and of decreasing poverty. Having a better education and good hea lth standard in these areas are signs of poverty reduction which leads to less inequality. Promoting education, particularly for the poor people, improving health standard and enhances the productively growth that is the main engine of poverty reduction25. For example, in 1990 the adult literacy rate ( of people aged 15 and over) in India was 49. % while 37. 3% was the percentage of population below the poverty in rural areas. In 2002 there was a tremendous increasing in adult literacy rate ( of people aged 15 and over) to 58. 8% and the percentage of population below the poverty line in rural area dropped to 30. 226. Some people think free trade is a cause of increasing poverty in the world. However, fewer trade barriers and cheap transportation create economic integration and global markets. All that help economy to grow in each country specially the developing counties.Free trade is an important instalment that enhances the economic situation in a way that helps poor people to c ome out poverty. Foreign direct investment creates a lot of job opportunities in developing countries. Many people move to urban areas to work in a better condition with better salaries. For example, Mr. Dwanzhi She who lives in Wuhan, an urban city, said that he grasps 60 thousand dollars in a year and that is a very fancy life in China. His life is completely different from his parents life who used to live as husbandman in a rural area Beijing and suffered from tough life27 .Many people hate foreign investment in a developing country because they think foreign investment abuses poor people and they does not give them their rights. The answer is that, free trade or the global market has created a lot of enhancement and profit for both developed and developing counties. The fact is that, some people using it in a bad way and misjudge poor people so they get the positives. As Mr. Hang Dong Fand who is a member in a prod activity says that, Market economy is not bad but some dicta tor people use it in a evil way28.There are many organizations such as World Trade Organization (WTO) which worked for protecting poor people from those people who abuse them The World Trade Organization, (WTO), is the primary international body to help promote free trade, by drawing up the rules of international trade29 For example, Miss Wu Qin is a Chinese woman who works as a volunteer in a foreign fund, Advise Clinics- says that many companies are abusing poor peoples rights so her role is to provide legal help by bad them the clear idea about their individual rights30.The access of foreign product to developing courtiers leads some people to think that globalization for increases poverty. On the contrary, this governing body has helped a lot of poor people. It is to be noted that state-controlled transcription there were barriers to trade in every county to set up in order to protect their industries. Import substitution industrialization was a way that each country tried t o create its own industry. That socialist musical arrangement divided the country into many classes, where the lowest class was the majority of the country. contrast was a common thing at that time.The rich people who lived in urban areas were able to live a fancy life. The 1980 was the end of the socialist system and the beginning of globalization. Globalization has changed life of poor people for the better. There grew competition between companies for better products. In the same way they were move to prepare them selves for more production at low pries. As a result, many people bought good products at low cost Consumers get cheaper products (nearer world prices), at least in the medium-to long-term. . 31 In conclusion, poverty has fall rapidly with the birth of globalization.