Globalization has had diverse implications on the economic wellbeing of the society.

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Globalization

Abstract

Globalization has had diverse implications on the economic wellbeing of the society. The relative technological advancements and free flow of information have impacted on world populations differently. The purpose of this paper is to evaluate how globalization or economic integration has increased inequality within and across nations. Inequality in this regard is closely related to the levels of income of different facets of the population. Further, the paper highlights the measures that have been undertaken by the states, industries and different economic sectors to respond to the implications of globalization. To enhance a harmonic consideration, it also underscores the rationale for the identified measures.

Introduction

Increased technological advancements have had diverse implications on the global economy. In particular, these have led to increased flow of information that is used across the globe. In addition, this has culminated in easy movement of goods or products across the globe. From an economic point of view, globalization has led to an increase in the gaps between the rich and the poor. This can be attributed to the fact that unlike the poor, the rich have ready access to technology that they employ in production. In general, globalization creates greater inequalities within and across nations.

As aforementioned, globalization has led to increased flow of information and technology. This information is useful for daily survival and its spread is necessitated by technology. In order to benefit immensely from the respective information, an individual needs to have skills and knowledge regarding use of relative technology. In his review, Birdsall indicates that higher education plays an important role in instilling the relevant skills and knowledge in individual (78). Statistical evidence on the other hand ascertains that compared to the rich, the poor lack sufficient resources to pursue higher education. This can be used to explain way they seldom access vital knowledge and skills to benefit from free flowing information and knowledge. In this consideration, globalization trends continue to empower the rich more than the poor at all level. Wealth in this regard is defined in terms of income levels in that the rich have higher incomes than the poor.

Also, it is worth noting that higher education is essential for attainment of a higher economic status. Lack of higher education therefore prevents the poor from improving their economic wellbeing. In this regard, higher education instills in an individuals skills, knowledge and competencies that enable the same to perform optimally in the job market. According to the trends in the job markets, individuals with higher skills have higher wage compensation than their counterparts. In most economic sectors, individuals with higher education tend to get more financial rewards than their counterparts. This is attributed to their ability to perform better and more efficiently. Thus compared to skilled individuals, non skilled individuals have a lower income. In this consideration, persistent differences in income levels contribute significantly to economic inequality.

Emergent researches show that wealthy individuals are more likely to assume leadership positions than poor individuals. Likewise, wealthy nations have a higher probability of assuming global leadership poor nations. Wealth in this regard is an exemplification of power and influence. Most of the wealthy individuals use their power and individuals to pursue their good and improve their well being. In particular, they use their influence to gain access to vital resources across the globe. This further widens the gap between the rich and poor factions of the society.

Use of technology in the economic sphere has had adverse impacts on the poor who have fewer skills. In this respect, job automation has culminated in widespread unemployment. Unemployment implies that the poor lack a definite source of income and their quality of life is affected detrimentally. On the other hand, job automation increases the income of the wealthy because who supposedly own the industry. It increases the quality as well as quantity of production and makes it possible for them to explore new and more rewarding modes of production. From an economic viewpoint, this increases the gap between the rich and the poor.

According to Kapstein, globalization also leads to increased economic competition. All nations across the globe compete for the natural resource base in order to better their wellbeing (17). This is further perpetuated by technological advancements that enhance the exploitation of resources. Arguably, the rich or those with higher incomes have an upper hand with regards to resource exploitation. They have more resources at their disposal and are likely to compete favorably. In addition, they have the influence to access the resources for their benefit and in most cases, they actively engage in formulation of policies used to govern resource utilization. Inherent disparities and intense competition increase the gaps between the rich and poor because while the rich achieve more, the poor continue to strain and achieve comparatively less.

At this point, it can not be disputed that globalization has led to increased economic inequality. While the rich continue to acquire more wealth and increase their income levels, the poor continue to suffer in poverty. This has had far reaching implications on the quality of life of the poor. In response, they are undertaking various measures to counter the scenario and enhance their quality of life. Arguably, respective measures are also geared towards leveraging income levels and ensuring that al individuals have a chance to access vital resource for quality living.

From a global point of view, Lindert and Williamson indicate that mass migration has been instrumental in equalizing income distribution between different countries (18). Movement of individuals from poor to rich countries has allowed them to benefit form the wealth and higher incomes of the wealthy countries. Likewise, movement of the wealthy individuals to poor countries has provided them with a chance to exploit the resources therein and improve the income levels individuals in poor countries at the same time. Besides helping to bridge the gaps between the rich and the poor, mass migration has helped in distributing wealth across the globe. As such, all individuals have had a chance to share in the global wealth in acceptable degrees.

Industries and other economic sectors have also responded to the implications of economic integration through formulation of policies and regulations that encourage equitable distribution of resources. Since inequality is already apparent in the society, it has been deemed necessary to establish laws and regulations to govern resource exploitation and distribution. These allow all individuals from different social and economic backgrounds to share in the natural resource base. Regulating exploitation also ensures sustainability as respective resources are given a chance to regenerate and benefit future populations. The established standards, rules and regulations also ease competition that provides room for equal exploitation of resources.

Countries of the global world have also taken measures to develop financial institutions such as the World Bank to help in addressing the implications of globalization (Micklethwait and Wooldridge 25). Basically, these provide financial aid to needy countries in a bid to enhance their economic production. The established regulations are instrumental in enhancing accountability especially considering the poor nations have weak regulations and policies. Notably, the economic policies that are enforced by these financial agencies allow the poor nations to benefit from the rich nations through cooperation. For instance, a policy such as General Agreement on Tariffs and Trade (GATT) that is enforced by the World Bank dissolves trade barriers and allows the poor countries to benefit from a supportive trade environment.

Conclusion

In conclusion, globalization has greatly increased the economic gap between the rich and the poor in different ways. The relative technological advancements that are useful in resource exploitation are only available to the rich and wealthy who have relevant skills and knowledge. Technological advancements disadvantage the poor in the society because it culminates in unemployment and denies them a chance to actively participate in meaningful employment. In addition, market trends related to according the skilled higher compensation further increases disparities between the rich and the poor. The entire scenario is further perpetuated by the recognition that comparatively, the rich are more likely to further their higher education and perfect their skills than their poor counterparts. The industries, countries and a host of economic sectors have responded to these in different ways. This is in a bid to enhance their economic performance, improve their quality of life ad enhance equality. Besides establishing policies and financial institutions to assist the disadvantaged, mass migration has been instrumental in addressing this menace.

Works Cited

Birdsall, Nancy. Life is Unfair: Inequality in the world. Foreign Policy, 111.1 (1998): 76-94. Print.

Kapstein, Ethan. World Economy. Foreign Affairs, 73.3 (1996): 16-37. Print.

Lindert, Peter and Jeffery Williamson. Does Globalization make the World More Unequal? Cambridge, MA: National Bureau of Economic Research, 2001. Print.

Micklethwait, John and Adrian Wooldridge. Think Again: The globalization Backlash. Foreign Policy, 126.1 (2001): 16-26. Print.