Globalization and the Issue of Poverty: Making the World a Better Place

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Table of Contents

Introduction
Globalization and Its Effects on Poverty
Positive outcomes – transcending the boundaries
Negative outcomes – labor force and other issues
Conclusion
Reference List

Introduction

Living in the XXI century is not easy. Since of the process of globalization, which has been going on for several decades running, is finally starting to have an effect on the world economics, politics and social life, it is necessary to adjust to the new rules and a practically new environment. Moreover, people of the XXI century have to face new challenges in the fields specified above.

One of the greatest challenges is designing the methods of avoiding the increase in poverty rates. There is no use denying that poverty has been an issue for quite long. As a matter of fact, poverty has been in existence since the humankind discovered the fact that goods have an intrinsic value (Edkins, & Zehfuss, 2008).

However, in the XXI century, when the globalization process has come into full swing, poverty rates may reach a tremendous scale, which means that the means to control the problem must be found. In addition, it is worth keeping in mind that with the new opportunities that globalization opens in front of the humankind, one can possibly discover the new ways to bring the poverty rates down.

Globalization and Its Effects on Poverty

Before going any further, it is necessary to offer a definition of the key concepts that are going to be discussed in the given essay. To start with, the phenomenon of poverty needs a thorough consideration. While the problem of being poor is rather understandable and sadly common in the modern world, the exact definition of poverty is not that easy to coin.

Since the prosperity and poverty rates are defined by the minimum wage acceptable in the given state, it must be assumed that the poverty line is unique in each state. In addition, the factors enhancing poverty in specific state differ considerably. Finally, in different states, different layers of society are stricken by poverty. As a result, the phenomenon of poverty is quite hard to nail down in one concise definition.

However, Heywood has managed to single out the common features of poverty in most states of the XXI century and, therefore, come up with an updated definition of the problem in question. According to the author of Global politics, poverty is the state of being deprived of life essentials (Heywood, 2011, 353). While the given definition might seem too broad, it actually offers the most accurate definition of what poverty is.

It is necessary to mention that, though the financial context seems absent in the given definition, it is actually implied, meaning that poverty is the state of having so little money that they are not enough to buy the life essentials, i.e., food, water, shelter, medicine, etc. The objectivity and correctness of the given definition can be proven by the fact that it actually refers the audience to the hierarchy of needs structured by Maslow.

Indeed, when considering Maslow’s hierarchy, one must note that the life essentials, i.e., food, clothing, and shelter, are considered the bulk of the system and, therefore, the crucial elements without which a human being cannot exist (Lusted, 2012).

Another concept that requires definition is globalization. Despite the fact that it was launched by people and, therefore, should be less difficult to define compared to poverty, it actually touches on so many aspects of people’s lives that it is practically impossible to embrace its every facet in a single definition. At present, several definitions of the globalization as a phenomenon exist.

According to Tuo Cai, globalization means “the historical process of the extension of deepening of mankind’s cross-border exchange and communication around the world” (Cai, 2012, 313). Therefore, some researchers tend to view globalization as not necessarily an economical, but mostly as a cultural phenomenon, i.e., the fusion of the world’s major cultures and the surge in opportunities for international communication.

Another viable definition of the phenomenon was offered by Pramanick and Ganguly. As the researchers explain, globalization can be defined as the process of “expanding worldwide flow of goods, persons, symbols, ideas, ideologies, and capital, entailing a ‘time-space compression’” (Pramanick & Ganguly, 2011, 47).

Therefore, although globalization is considered the process of cultural exchange, its properties as a powerful enhancer of worldwide economy are stressed firsthand. As a result, globalization should be considered as an economic process first, and only then as the process of cultural exchange.

The aforementioned definitions of globalization and poverty can help define the potential changes that the globalization will have on the rates of the former in the nearest future.

Positive outcomes – transcending the boundaries

It would be wrong to assume that globalization is going to have only the most deplorable effects on the poverty rates all over the world. When speaking of the ways in which globalization is going to shape the present-day society, one must admit that in some layers of society, poverty rates will doubtlessly be reduced.

It is necessary to stress that globalization is going to turn on the green light for countless numbers of migrant workers to earn more money. Since in the globalized economic space, it will be easier to get position in a foreign country, it can be assumed that migrant workers and immigrants will be able to find jobs much easier and, therefore, finally manage to earn decent salaries.

It would be rather naïve to expect that globalization and economic changes will magically boost income rates all over the world; however, it will definitely provide more opportunities for a positive change. In addition, globalization presupposes that it will be easier to join political forces to solve specific issues. By deploying the politics of aid (Heywood, 2011, 369), one can expect that the poverty rates in certain countries are going to decrease.

Since transcending economical and physical boundaries between the states all over the world will trigger massive changes, such as a flow of labor force in certain fields, etc., it is likely that financial and economical difficulties in certain fields will ensue together with economic growth in other spheres. As a result, the issue of poverty is likely to be put in the limelight of the XXI-century globalized world agenda.

The given problem can and must be handled with by controlling the factors that contribute to poverty rates increase. Among the most obvious means of control, the establishment of strict rules in the sphere of private and public sector should be mentioned. However, the side effects of the globalization process, among which increase in poverty rates in specific layers of society must be named first, will doubtlessly follow the triumph of globalization and, therefore, needs to be addressed before the problem has got out of hand.

Negative outcomes – labor force and other issues

However, globalization will also trigger an inevitable drop in employment rates among the natives. Despite the fact that migrant workers and immigrants need to be encouraged in their business beginnings in a completely new environment, one must agree that the types of labor force specified above are often less demanding than the native labor force.

As a result, the native labor force, whose standards for wages, number of holidays and other benefits that they have been legally granted with by the state, become considerably less valuable employees than the migrant and immigrant labor force, whose demands are often less stringent. With that being said, migrant and immigrant labor force are often preferred to the native one due to the features specified above, which leads to a sharp increase of unemployment among the natives.

While at present, the given phenomenon cannot be considered as recurrent, in the realm of a globalized world, it is likely to become massive, which will clearly lead to a steep rise of unemployment and, therefore, poverty rates among the native labor force.

Unemployment is not the only reason for people to fear poverty as a logical consequence of the globalization process. No matter how weird it might sound, globalization is likely to lead to an even greater split between the nations of the world. Known as the North-South divide (Heywood, 2011, 360), the given phenomenon presupposes that the world should be split into two parts, i.e., the industrialized North and the South, which tends to be more agriculturally oriented.

As a result, the relationships between the two can possibly be rather tense, with the North taking the position of the one beholding technological power, and the South becoming the supplier of the goods for the almighty North. The consequences of the given change are rather obvious; it is more than likely that the people inhabiting the Southern hemisphere are going to balance on the brink of poverty (Heywood, 2011, 360).

While the given concerns might seem rather far-fetched nowadays, they can possibly become an issue later. The next problem of globalization, which will probably trigger an increase in poverty rates stems from the above-mentioned supposed divide between the South and the North. With the North being in the leadership position, it will be impossible to maintain relationships based on equality between the two parts of the world.

As a result, the problem of inequality will ensue. While the given issue is not linked to poverty directly, it provides the environment for poverty to brew in. Therefore, the rates of inequality will take an even greater scale than they have nowadays.

As a result, it can be expected that women, the representatives of national minorities, and other “risk groups” will face the threat of poverty in the globalized environment. Coming on the heels of the “globalized economic space,” the split between the technologically developed North and the agrarian South is a truly threatening perspective.

Much to the credit of the world’s leading states, the threats of poverty that globalization poses to the humankind have been analyzed well enough. Moreover, the means of fighting with the expected surge in poverty rates have been provided. Although the given methods do not block every threat that globalization process triggers, they are still worth a thorough consideration. One of the most graphic examples of such initiatives is the solution provided in Wade’s research.

Excluding countries with high but not rising levels of trade to GDP from the category of more globalized eliminates many poor countries dependent on a few natural resource commodity exports, which have had poor economic performance. […]. If they were included as globalized their poor economic performance would question the proposition that the more globalized countries do better. (Wade, 2004, 580)

The idea of excluding certain states with a relatively low GDP might seem a good idea. However, it is worth mentioning that this idea contradicts the principles of globalization, which presuppose the inclusion of ever single state into the economic processes. Therefore, other avenues should be sought to find a way out.

Conclusion

There is no secret that in the age of globalization, the world is facing rapid and quite impressive changes. With the traditional models of business interaction being replaced by newly adopted ones, and the new media like social network reinventing people’s perception of life in its every aspect, starting from economical to the social one, globalization is both feared and expected.

Since the scale of globalization is beyond huge, it can be assumed that the globalized world is going to look nothing like the reality of the beginning of the XXI century. Some of the effects of globalization have become obvious now; the rest of them are likely to be discovered in the nearest future. Therefore, it is the concern of the present-day world to make sure that the negative aftermaths of globalization, including the possible rise in poverty rates, should be prevented as soon and as efficiently as possible.

Even though one can hardly come up with an exact concept of what the future economic state of the world in general and certain states, which are considered under the threat at present, will be like, it is still possible to make sure that no drastic negative outcomes are going to follow at the end of globalization.

With that being said, poverty must be recognized as a tangible threat for a number of states and their residents. However, to address this problem adequately, a number of measures will have to be taken. The top priority must be given to the establishment of the labor law that the relationships between an employer and an employee within the global economic space are going to be regulated with.

In addition, the laws regarding the migration problem, as well as the use of migrant labor, must be provided. The education issue must also be regulated so that people from all over the world could have the opportunity to acquire the skills that will later on help them in their career.

In a nutshell, the key question is not whether the poverty issue can be regulated within a globalized environment; the question is whether people are ready to study, work and evolve in the given environment, and whether people are capable of controlling the economical and financial processes that are going to take place on the global scale.

At present, the answer seems to be rather yes than no; however, it goes without saying that even more stringent methods of controlling the globalization process should be provided, which presupposes that the political and economical cooperation between the states all over the world should be enhanced.

Reference List

Edkins, J. & Zehfuss, M. (2008).Global politics: A new introduction. New York. NY: Routledge, 2008.

Heywood, A. (2011).Global politics. New York, NY: Palgrave MacMillan.

Lusted, M. A. (2012). Poverty. North Mankato, MN: ABDO.

Pramanick, S. K. & Ganguly, R. (2011). Globalization in India: New frontiers and emerging challenges. New Delhi, India: PHI Learning Private, Ltd.

Cai, T. (2012). Chinese perspectives on globalization and autonomy. Dancers, CA: BRILL.

Wade, R. H. (2004). Is globalization reducing poverty and inequality? World Development, 32(4), 567–589.

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