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This paper explores the relationship between globalization as an economic process and international inequality and poverty. First, the paper considers the history of globalization and its intrinsic outcomes in order to question its benefits for the world at large. Then the paper argues that the constant pursuit of free market capitalist ideals through global governance institutions that has created the world as it is today. Additionally, the paper points out that inherent within the nature of unregulated free market capitalism is a tendency to stratify the world based on the economic theory of comparative advantage. According to the paper this in effect cements developing countries into the production of basic commodities, which when exposed to the fluctuating world market, have the effect of sinking them into greater poverty. There is brief reference made to Marx's original critique of capital. The discussion concludes by arguing that, as a result of increased free market led globalization, there is increased poverty and increased inequality.
From the Paper:"With the breakdown of the Cold War power blocs it became possible for countries to integrate in ways which were previously impossible. In the wave of new hope which swept over the world there was a dominant idea, as put forward by global governance institutions, that if the world could integrate itself more through free trade, it would benefit every citizen on the planet, through the introduction of cheaper commodities and greater opportunities. Free trade would create a boom in trade and this free trade boom would create an improved world for everybody, as Paul Collier puts it, 'a rising tide lifts all boats'. This philosophy became known as neoliberalism, in the sense that it was in essence a return to traditional liberal international relations theory, and its widespread acceptance, the Washington Consensus.
"However, the theory of what this type of globalisation and trade based integration would create and what it actually created are two very separate things. The vast majority of commentators and writers are now heavily critical of neoliberalism and highlight it as being a key instigator of many of the current problems with international development. Keily argues that 'contrary to the claims made by neoliberals and some globalisation theorists, capital is not dispersing throughout the world'. In other words, the policy has basically failed. Other critics go further, suggesting that the policy could do nothing else but create greater inequality and poverty."
Sample of Sources Used:
- Bayliss, J. Smith, S. Owens. P, "The Globalization of World Politics: An Introduction to International Relations." OUP Oxford, Oxford:, 2007.
- Caney, S . "Review Article: International Distributive Justice." Political Studies 49 (2001): 974-997.
- Collier. P, "The Bottom Billion." Oxford University Press, Oxford:, 2008.
- Dunkley. G, "Free Trade: Myths, Reality and Alternative." Zed Books, London:, 2004.
- Keily, R. 'Poverty Reduction through liberalisation', Review of International Studies, 33: 3, July 2007
Cite this Term Paper:
Globalization, Poverty and Inequality (2012, February 15) Retrieved April 17, 2021, from https://www.academon.com/term-paper/globalization-poverty-and-inequality-150418/
"Globalization, Poverty and Inequality" 15 February 2012. Web. 17 April. 2021. <https://www.academon.com/term-paper/globalization-poverty-and-inequality-150418/>