Globalization and Poverty Reduction

This assignment examines the multifaceted relationship between globalization and poverty. It analyzes arguments for and against globalization's effectiveness in alleviating poverty, exploring the potential benefits of multinational corporations and foreign investments while acknowledging issues of inequality and exploitation. The assignment further investigates alternative models for managing globalization to ensure equitable outcomes for all socioeconomic classes.

Running head: GLOBALISATION AS A TOOL TO COMBAT POVERTY
GLOBALISATION AS A TOOL TO COMBAT POVERTY
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Author note:

1GLOBALISATION AS A TOOL TO COMBAT POVERTY
Globalisation is one of the worldwide phenomena observed in modern times. It is a
procedure of communication and coordination among the general populace, organizations &
institutions, and administrations of various countries throughout the world; it is driven by
worldwide exchange and interaction, which is supported by data innovation and advancement
in information technology. This system has direct impacts on the planet, on people’s culture,
on environment, on political frameworks, on monetary improvement and flourishing, and on
human physical prosperity in social orders the world over.
How is globalisation supposed to contest poverty when global actors exploit the very
nature of its existence for their own interests?
Though the picture from outside is rosy from where it seems the gap between the
disparity between the poor and rich countries of the world is reducing progressively, but the
economic disparity among people within the nations are far from getting uniform (Milanovic
2016). One of the theories that aim to explain this scenario states multinational companies or
MNC’s in poor nations regularly utilize skilled specialists and pay lofty pay packages, but the
unskilled poor remain in the same place because of lack of exposure to quality education and
competitive training. Other financial hypotheses attempt to clarify why disparity in
developing and growing nations has achieved such statures. Nobel laureate, Simon Kuznets,
contended that developing disparity was unavoidable in the beginning times of improvement
of economic condition of a country (The Economist 2018). He figured that the individuals
who had cash in the first place could see enormous increases from investing, and could in this
manner advantage from development, though those with nothing would stay in the same
position of poverty and neediness.
The issue of the impact of globalisation on the poverty context is complex.
Globalisation has a number of key players who are directly or indirectly responsible for the

2GLOBALISATION AS A TOOL TO COMBAT POVERTY
process. The political leadership of the advanced countries are very effective in the spread
and expansion of globalisation internationally. However, widespread corruption in the
political fraternity has blocked the benefits from reaching the poorer section of the
developing nations, which would reduce the disparity of wealth distribution.

3GLOBALISATION AS A TOOL TO COMBAT POVERTY
REFERENCE:
Milanovic, B., 2016. Global inequality: A new approach for the age of
globalization. PANOECONOMICUS, 63(4), pp.493-501.
The Economist., 2018. Why globalisation may not reduce inequality in poor countries.
[online] Economist.com. Available at: https://www.economist.com/blogs/economist-
explains/2014/09/economist-explains-0 [Accessed 12 Jan. 2018].

4GLOBALISATION AS A TOOL TO COMBAT POVERTY
How could globalisation be managed differently in order to benefit all classes?
There should be a more responsible structure of globalisation where the stakeholders
and key-players in the system will be responsible to each other, and people flouting rules
would be penalised by an international authority. The delegate of Nepal said in United
Nations, it was dispiriting to take note of that in the course of the most recent decade; the
difference in financial conditions had broadened. "Islands of success" had kept on thriving in
"a sea of unimaginable poverty", he said. Individuals in developing nations were all the while
living without access to purified water for drinking, quality instruction, health facilities and
other fundamental administrations of life (United Nations 2018).
There are proofs, which emphatically recommend that export development, and
approaching foreign ventures have decreased poverty all over from Mexico to India to Poland
(Nesvisky 2018). There is need of a more sustainable structure of development, which
touches all the sections of the society, and is inclusive (Tan and Macneill 2015). Substantial
alteration in management of the globalisation process will make all the sections inclusive in
the process.

5GLOBALISATION AS A TOOL TO COMBAT POVERTY
REFERENCES:
Nesvisky, M., 2018. Globalization and Poverty. [online] Nber.org. Available at:
http://www.nber.org/digest/mar07/w12347.html [Accessed 12 Jan. 2018].
Tan, C.H. and Macneill, P., 2015. Globalisation, economics and professionalism. Medical
teacher, 37(9), pp.850-855.
United Nations., 2018. Poverty, negative effects of globalization highlighted, as third
committee concludes discussion of social development issues | Meetings Coverage and Press
Releases.[online] Un.org. Available at: https://www.un.org/press/en/2001/gashc3631.doc.htm
[Accessed 12 Jan. 2018].