Factors Leading to the Increase in the Gap Between Rich...

FACTORS LEADING TO THE INCREASE IN THE GAP BETWEEN RICH AND POOR NATIONS DUE TO GLOBALIZATION INTERNATIONAL INEQUALITY Inequality must be defined and be able to be measured so that comparisons can be made between rich and poor countries. Once the causes are determined, the effects of globalization can be evaluated and be measured. The World Bank defines inequality as the disparity of income and standard of living among nations and their citizens (Birdsall, 2002) The income gap that exists between the rich and poor countries has become substantial. In 2003, the richest fifth of the world’s population received 85% of the total world income, while poorest fifth received just 1.4% of the global income (infoplease, 2005).When the GDP is†¦show more content†¦Although the two countries adapted well to globalization, there is little doubt that their newfound relative prosperity opened many new fissure lines. Inequality between coastal and inland provinces, as well as between urban and rural areas, skyrocketed in China. Another large group of Third World countries in Latin America, Africa, and former Communist countries, experienced a quarter-century of decline, or stagnation, punctuated by civil wars, international conflicts, and the onslaught of AIDS. While rich countries grew on average by almost 2 percent per capita annually from 1980 to 2002, the worlds poorest 40 countries had a combined growth rate of zero. For large swaths of Africa, the income level today is less than 1-dollar-per-day. For these latter countries, the promised benefits of globalization never arrived. Social services were often taken over by foreigners. Western experts and technocrats arrived on their jets, stayed in luxury hotels, and hailed the obvious worsening of economic and social conditions as a step toward better lives and international integration. Indeed, for many people in Latin America and Africa, globalization was merely a new, more attractive label, for the old imperialism, or worse - for a form of re-colonization. The left-wing reaction sweeping Latin America, from Mexico to Argentina, is a direct consequence of the fault lines opened by policies designed to benefit Wall Street, not the people in the streets of Asmara, Nairobi orShow MoreRelatedFactors Leading to the Increase in the Gap Between Rich and Poor Nations Due to Globalization2447 Words   |  10 PagesFACTORS LEADING TO THE INCREASE IN THE GAP BETWEEN RICH AND POOR NATIONS DUE TO GLOBALIZATION INTERNATIONAL INEQUALITY Inequality must be defined and be able to be measured so that comparisons can be made between rich and poor countries. Once the causes are determined, the effects of globalization can be evaluated and be measured. 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