Poverty and Globalization
Debates on poverty and globalization produce different perspectives. Poverty and globalization both share a complex relationship wherein globalization has been portrayed both as a cause to poverty at the same time, a solution. With globalization viewed as a crucial engine for growth, opposing views see the impact of globalization as a cause to poverty.
Collier and Dollar (2001) defined globalization as the growing integration of economies and societies around the world. On the other hand, poverty is explained as a condition where a community or a person lacks the essential needs to enjoy a minimum standard of living in the society (Lister, 2004).
The effects of globalization towards poverty can be determined through different perspectives. One views globalization as a means of growth which contributes to the beneficial effect on poverty since evidence presents that the more globalized an economy is, the more progress will be. Dollar and Kraay (2001) “famously concluded that liberalization of economic policies had been responsible for the vast improvement in the alleviation of world poverty through growth”. On the contrary, The United Nations (2005) stated that “though some parts of the world have experienced unprecedented growth and improvement in living standards in recent years, poverty remains unshakable and much of the world is trapped in an inequality situation”. Critics view globalization as a way where power is concentrated in a way that benefits themselves and a way to worsen poverty. Aminat (2002) and Harrison and McMillan (2007) stated in their studies that “globalization has boosted incomes and helped raised living standards and that the poor are more likely to share in the gains from globalization, there are pro-poor growth advocates who find the idea that globalization produces losers more than what can be called ‘winners”. For Stiglitz (2002), “globalization fails in promoting development and hence continues to create poverty and instability”.
It cannot be denied that globalization played a major role towards development and growth both in economy and way of living yet it also has its negative impacts. Poverty has a significant relation towards progress and globalization. As presented by different perspectives of the impact of globalization towards poverty, it is evident that globalization contributes to both the cause and solution towards poverty.
Different studies on globalization and poverty have shown that globalization has been associated with rising inequality, and that the poor do not always benefit from the progress made by globalization. Although globalization has indeed brought economic growth and development through which globalization can affect poverty, it can not be denied that while underdeveloped countries open up to trades, development tends to grow faster which increases the standards of living. With this, it is evident that the benefits of the higher growth brought by globalization tends to trickle down to the poor. One of the best examples to prove how affected the lower class towards such progress is when factors are changing such as technology and macroeconomic conditions and high quality of living which is not available. To add on, globalization has also brought inequality towards different economic class systems.
The progress and growth brought by globalization has widely benefited the upper class while the lower class suffers from the drastic change and development and thus, must comply with the needs and the standards of living despite having no means or having little access towards such way of living for the sake of living and surviving.
Criticisms and uproar of negative comments from citizens when Rappler, a digital news organization, presented the photo of the newly built CCLEX bridge that highlights the shanties of the Pasil slums in the foreground. The photo has brought up the issue of poverty aligning its relation towards progress. It is evident how despite the will and pursuit towards development, it can not hide the fact that progress and development does not cater everything, poverty, no matter what, is present but neglected at some point. For the sake of seeking economic growth and development, the photo clearly presents how poverty has been constantly neglected and how the government fails to reduce poverty. “The beautiful bridge with the city's ugly underside” as stated by Anol Mongaya. A representation of how poverty should not be hidden and must be addressed accordingly, is how the photo speaks its volume. With that being said, progress and development brought by globalization, in most cases, has worsened the state of the poor and does not usually contribute to eliminating the problem of poverty.
-Ms. Lendejhar-
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