Globalization Decrease Poverty in the World

Only available on StudyMode
  • Download(s): 83
  • Published: April 27, 2009
Read full document
Text Preview
Globalization is a set of processes leading to economic integration. All countries open their doors to each other. The wind of globalization has carried a lot of changes .The life nowadays depends on trade and economic relationships. Before globalization, countries were separated from each other. As a result , every one was looking for its interset in a selfesh way which is contrary to what is happening now. However, people nowadays are thinking of ways that help them to communicat with one other. There are a lot of postive things which have resulted from globalization and have improved people’s lives such as decreasing poverty in the world. In fact, an average 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 globalization[1]. Global economy has improved in the last 20 years ,which caused poverty reduction in world. Free trade and outsourcing are the most prominent phenomena which resulted from globalization and played an important role in reducing poverty.Free trade played an important part in creating a strong economy in the world. There is a vast difference between the country that open itself to world and the country that bonded it self. China is a good example of those powerful industrial countries which have benefited from globalization. “China's increasing openness since 1978 has handsomely benefited its economy which is now nine times larger” [2]. Free trade creates a competition between countries for better goods. The poor people were able to benefit from this competition. The increasing variety and quality of products gives the poor people a lot of choices to live a better life “Diversity also becomes important for consumers, with wider choice and access to better and cheaper products and services in globalizing markets”[3]. It is a well-known fact that before globalization all countries were enclosed within themselves but with free trade life became more 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 even cars. People did not have the right to own anything and trade was trapped so there were a lot of people who suffered a hard 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 faster in a way that helps more“A new WTO '' World Trade Organization- Secretariat study published today (19 June) finds that trade liberalization helps poor countries to catch up with rich ones and that this faster economic growth helps to alleviate poverty”[4]. Now, developing counties are playing a big role in world’s trade which is a sign of economic progress that has been achieved in their counties “Today the real dynamism in trade is to be found in the developing world, where Brazil, China, India, Malaysia, Mexico and Thailand all posted double digit growth in exports”.[5]

The outsourcing is one of the most widespread phenomena in the world which results from globalization “Many economists argue that outsourcing is just another form of free trade, which increases wealth in the economy”[6]. The big companies which are head quartered in developed countries set up their factories in developing countries so that has helped to increase jobs opportunities. For instance, from 1982 to 1999 an average of 34 million new jobs were created per year by outsourcing, compared with 18 million in 1965-1982[7]. Another positive thing about outsourcing is that companies are able now to produce more products of the same quality but at low cost “Economists say that employing workers at lower cost allows U.S. companies to be...
tracking img