The paper "Does Globalization Promote Prosperity and Opportunity for All' Is a great example of a Macro and Microeconomics Case Study. This work deals with an analysis of the effects of globalization on the elimination of poverty in the world. As such, this work claims that globalization has not been wholly successful in alleviating poverty in the world. The following discussion proves this contention. In this regard, various controversial arguments have been taken up for discussion. Finally, conclusions have been arrived at. The principal claim of this work is that Globalization has not been entirely successful in reducing worldwide poverty. The modern epoch of globalization and sustained reduction in the proportion of individuals living in extreme poverty have overlapped.
This could lead one to surmise that globalization has not rendered the poor more impoverished. At the same time, globalization cannot claim to have been the sole cause of poverty alleviation. The latter phenomenon had predated trade liberalization in a substantial number of instances. As such, addressing market failures, ensuring political stability, enhancing infrastructure, performing outland reform, and providing social safety measures are much more influential in diminishing poverty than globalization.
The latter is merely one of the factors that can promote poverty alleviation. It would be the height of folly to open up a nation’ s market without undertaking the measures enumerated above. In such instances, poverty would be enhanced rather than diminished. Paragraph One International foundations and governmental and non-governmental organizations focus to a considerable extent upon global poverty. Some of these entities are the United Nations, International Monetary Fund, and the World Bank. Furthermore, several scholars have undertaken the study of globalization and its role in poverty alleviation.
Poverty has impacts that are not restricted to the areas where it prevails. The adverse effects of this distressful condition are substantial and are experienced in the developing, as well as developed nations. These adverse effects promote environmental degradation, urban slums, market stagnation, and the movement of refugees. As such, the industrialized nations have failed to address poverty, and their aid programs have proved to be woefully inadequate. Consequently, the need of the hour is for the multinational corporations to form profitable partnerships with the impoverished. Moreover, such associations should prove to be of mutual benefit for them.
The traditional interventions, in this regard, have proved to be unequal to this task. The development of new markets for their products, employment generation, and the presence of opportunities for economic development, can achieve this salutary effect. To a significant extent, the public-private alliance can attain this beneficial objective. However, it is the multinational profit-oriented enterprises that can play a major role in this process. Such entities are crucial for ensuring effective and enduring global poverty alleviation. Paragraph Two There tend to be differing claims regarding the impact of globalization.
For instance, Marber had contended that the multinationals had facilitated the further enrichment of the rich and had improved the economic status of the poor. On the other hand, Isaak had claimed that globalization had made the rich richer, whilst impoverishing the poor. As of the year 2010, remittances by workers to developing countries was around 365 billion dollars. This information was provided by the World Bank and constitutes less than one percent of the global GDP. However, these remittances are concentrated in certain areas.
An instance is provided by Mexico, whose inward remittances are second to only its oil exports. Consequently, remittances have an economic benefit that could be significant in some countries, and should, therefore, be taken into account in analyses of the influence of economic globalization. Thus, according to Isaak, globalization renders the poor more impoverished and rich the richer.
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