Does Globalization Help The Poverty?

Question

Does Globalization Help The Poverty?

2 Answers

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Answer 1

Critics of globalisation, in fact, attribute the condition of the poor people of the world to globalisation. In fact, these critics of globalisation are none other than the people whose main concern is the fate of the poor in the world. They believe that since the advent of globalisation, competition has increased, the poor countries have gotten poorer and the poor people have been exposed to harmful and unfair competition. To a certain extent, this argument is true.

Having said that, however, it is wrong to pinpoint that globalisation is a single cause of the misery and poverty in the world. It is an important cause, but it is a combination of factors that determine why people get rich or poor. Poverty, like wealth, is a multidimensional phenomenon and can be measured in different ways. However, it can be concluded that globalisation has steadily increased over the years and is now a universal problem.

Answer 2

Globalization definitely has a positive impact on reducing poverty. A country like India which was relegated to the status of a third world country has made significant progress and is now known as the fastest growing economy thanks to the phenomenon called globalization. Citing India as an example, when the country opened itself to international markets in the early 90s, it was looked upon as a hot bed for investment and furthering of business.

Most multinationals and foreign companies began to set up businesses here because of the cost-effectiveness of Indian workforce. The strategy paid off for both the client who got business done at half the cost, and for companies in India which could afford to pay heavy pay packets to its employees. Globalization has reduced brain drain; you do not have to leave your country to find jobs abroad. Jobs are outsourced and an average graduate with basic computer skills and command over English language can expect to make a 5 figured income.

Globalization has revolutionized farming and agriculture too. In fact this sector formed 80 percent of labour in countries like India. Due to corruption and high-handed strategies of "zamindaars," sly traders and other middle-men, the illiterate farmer would often end up getting a meager share for his produce. However now thanks to globalization, foreign companies are adopting the "farm to fork approach" wherein these private companies will directly take produce from the farmers thereby eliminating middlemen altogether. This translates into an enviable life-style for an average farmer. Finally he has a reason to smile and rejoice. Thus, without an iota of doubt, globalization has definitely lifted the spirits of a growing economy.