does globalisation help or hust the world's poor?

Question 1

what does the text Does Globalization Help or Hurt the World’s Poor? talk about?

Answer 1

The text provides an in-depth analysis of globalization and its impact on poverty and inequality worldwide. It highlights the complexities of economic globalization, discussing both its potential benefits (e.g., poverty reduction in countries like China, India, and Indonesia) and challenges (e.g., persistent poverty in Sub-Saharan Africa, job losses in certain regions). The analysis reveals that globalization is not the sole cause of either economic improvement or hardship; domestic policies and institutions play crucial roles in shaping outcomes. The text critiques both oversimplified pro- and anti-globalization stances and suggests actionable measures, including social programs, fair trade practices, reduced protectionism, and fostering international collaborations to address poverty and environmental concerns effectively.

Question 2

globalisation and poverty:

Answer 2

Globalization, along with its implications for poverty and inequality, is a prominent and contentious issue, often debated with strong opinions but limited evidence. The term “globalization” is interpreted differently, but in this context, it refers to economic globalization—the expansion of trade and investment. While globalization has brought both challenges and opportunities, the outcomes for the world’s poorest depend heavily on domestic political and economic institutions. The impact varies by context, defying simplistic arguments for or against globalization, and requires nuanced understanding to develop effective strategies

Question 3

what does the author say about the case for free trade being based on the principle of comparative advantages?

Answer 3

The case for free trade is based on the principle of comparative advantage, which suggests countries benefit by specializing in what they produce best and trading for the rest. While economists generally support this idea, there is debate about its short-term costs, particularly for the poor, who often struggle to adapt to market changes.

Evidence shows a global decline in extreme poverty, particularly in East, South, and Southeast Asia. For example, between 1981 and 2001, poverty rates fell significantly in China, India, and Indonesia. However, much of this progress is attributed to domestic reforms and agricultural advances rather than globalization alone. In contrast, Sub-Saharan Africa experienced rising poverty during this period, largely due to political instability, geographic challenges, and weak institutions, rather than globalization.

Overall, globalization has contributed to poverty reduction in some cases, but its effects are highly dependent on domestic policies and conditions. Local reforms and stability are often more critical to poverty alleviation than globalization itself.

Question 4

what does the author say about sweatshops and similar jobs?

Answer 4

Global market competition benefits skilled and entrepreneurial individuals but often disadvantages the poor, who lack access to capital and opportunities. In Mexico, globalization has reduced low-wage poverty, with regions more integrated into the global economy seeing greater income growth. Similarly, in countries like Bangladesh, Vietnam, and Cambodia, garment factories have provided better-paying jobs for women compared to local alternatives, improving their economic conditions.

While factory work often involves poor conditions, it offers vital opportunities in regions with limited options. For instance, when child labor bans in Bangladesh led to the dismissal of 50,000 children in 1993, many ended up in worse conditions like stone breaking and prostitution. This underscores the importance of balancing efforts to improve labor standards with the realities of poverty and limited alternatives.

Question 5

what does the author say about the local roots of poverty?

Answer 5

Integration into the global economy offers opportunities but also challenges, often exacerbated by domestic issues like poor infrastructure, corruption, and weak social protections. Without addressing these barriers, globalization can deepen poverty rather than alleviate it. Strong institutions and effective policies are crucial, as seen in successful cases like Mauritius and South Korea, compared to struggling nations like Jamaica and the Philippines.

Globalization alone is neither the cause of poverty nor a universal solution. Effective antipoverty measures, such as land reform, education, and worker retraining, can enhance productivity and competitiveness while addressing inequality. Environmental concerns linked to globalization often stem from domestic policy failures, with resource depletion driven by weak regulations and subsidies. Addressing these domestic issues is key to ensuring globalization’s benefits while mitigating its challenges.

Question 6

what measures have been proposed to address challenges and maximise the benefits of globalisation?

Answer 6

1. Capital Controls: Short-term speculative capital flows can destabilize fragile economies, as seen during the 1997 Asian financial crisis. Economists advocate controls on such flows, especially in countries with weak financial systems, to protect against economic shocks.
2. Reduced Protectionism: Trade barriers in rich countries cost developing nations billions annually in lost opportunities, surpassing the aid they receive. Removing tariffs and subsidies on agricultural and textile products could significantly benefit poor nations, although gains would vary across countries.
3. Addressing Market Power: Small exporters in poor nations struggle to compete due to high fees and restrictive practices by dominant transnational companies. Near-monopolies, such as in the coffee market, depress producer earnings. Proposals include creating an international antitrust agency and quality-certification programs to improve access and pricing for poor-country products.
4. Social Programs: Trade liberalization requires redistribution to ensure equitable benefits. Programs like worker retraining, unemployment support, and scholarships for children have proven effective, particularly in reducing child labor.
5. Research: Partnerships between public and private sectors are crucial for developing products addressing the needs of the poor, such as vaccines and crops. Organizations like the WHO and foundations like Gates are working to fill gaps in neglected areas like malaria and tuberculosis research.
6. Immigration Reform: Allowing more unskilled workers into wealthy nations as guest workers could significantly reduce global poverty. However, political and social resistance hinders progress in this area.

The text underscores the need to move beyond simplistic views of globalization. Tackling poverty effectively requires nuanced, integrated policies combining domestic and international efforts.