Globalisation: The Gap in Wealth

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Globalisation amongst other concepts such as internationalisation and universalism dominated the threshold of the 21st century. In its original definition globalisation refers to the ‘rapid increase in shared economic activity placed across national boundaries’. In essence this goes beyond the international trading of goods; the manufacturing of the goods, how they are delivered, the services in sales, and most importantly the distribution of capital. Globalisation was generated to improve the standard of living and circulate capital among the rich and poor, although in reality this has not been the case.

Globalisation rather has increased the gap between the rich and poor largely due to the negative effects of global trading, finance systems, ideologies, political policies, elites, privatization and many more. One of the main causes that contributed to the gap in wealth that has come upon to my attention is privatization. The main purpose of privatisation is to create competitive pressures in the marketplace to promote efficiency, yet history has dictated otherwise in many developing countries; as public services such as healthcare, education, water and many other services have become privatized giving elites the ability to increase prices that many cannot afford. The presence of competitive pressures has turned to senseless greed in contest, whereby these wealthy corporations employ many; in bad working environments whilst paying poor wages. These corporations do not find ways in false attempts to improve the livelihood of many; however they can successfully find a manner in which to compete with other businesses to gain a profit advantage over them; as a result exploitation has become a norm to generate wealth.

Globalisation as the ideal concept to distribute wealth is not all bad!! The process of distributing wealth is the main problem and the governments of each country should be held responsible. Globalisation has helped countries like India and China to grow through the medium of technology. However, other developing countries fall back when it comes to advance technologies as they do not have the means to invest in these expensive technologies. Thus, the solution is for governments to use globalisation efficiently. This can be done by using China and India as examples but replacing technology with a prominent talent of the specific country. This and many other formats of efficient globalisation can help the distribution of wealth become even across the region. While the solutions seem quite straight forward, the governments make it more difficult by increasing privatization in many sectors, and hence the frontrunners of the globalised world will continue to be the wealthy elites and the poor people in developing countries will persist to lose out.

Munira Abukar

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5 thoughts on “Globalisation: The Gap in Wealth

  1. I agree that globalisation is not all bad for development. It is actually good and important for private corporations to create some competition and innovation to the state-owned corporations and monopolies to give the people better opportunities and offers – but to an extent. Without regulations and some state interference, private corporations could make monopolies of their own, killing other small businesses in the area. A good example of that is Walmart and the way it ruins small businesses in small towns as well as creating a social division and division of labour. The people are the losers in this situation.

    Anette Stepanoski

  2. I agree with you that globalization is good for development and that globalization improved the standard of living, but to be sincerely only the wealthy countries are advancing with.
    zakiyyah Tukur

  3. I would like to add to the point, even though there was significant development in India in effect to globalization. It is mostly confined to geographical boundaries. When compared to the total size of the country only few cities from the whole of the country was benefited. Eg. Bangalore. Delhi etc.
    Majority of the population are still relay on agriculture as their main source of income.
    Raunaq Mathew

  4. On paper, globalisation is a brilliant concept but in practice it is a completely different ball game. Globalisation has affected the world in a number of way some positive but mostly negative when looking at it from the perspective of poor countries and the most marginalised communities in the world. One obvious impact of globalisation can be seen in way it has created a clear division of rich and poor nation. Although it looks a good idea as the principles allow easy movement of wealth among countries through trading – goods and services. It can be argued that it represents the interest of the developed countries and Multi-National Corporations (MNCs). Remember Animal farm? “All animals are equal but some are more equal than others” this always comes to mind when discussing globalisation…

    Fatou Jallow

  5. I really question the intentions of globalization. Was it really proposed to rid the world of the wealth Gap or was it rather used to reinforce it, but cover it up by pretending to make a difference.

    How can globalization really work efficiently when most third world countries have been put in debt especially by the IMF. They have no money to invest in technologies or even small scale projects.
    This puts them in a vulnerable position when faced with the wealthy countries who are able to globalize at a super fast pace.

    Globalization further reinforces the global wealth gap and is a phenomena designed to keep the wealthy wealthy and the poor poor.

    There are benefits as you have mentioned in the article, but these are minute in the third world and big in the first world.

    There is one possible benefits which i believe is that globalization has created the urge inside people to work hard and strive. Often this has made people more greedy but for others it works as a form of motivation that if they work hard they can achieve big things and such stories are many in number especially from the third world.

    The winners are the elite wealthy countries who benefit from globalization and the losers are the third world countries

    Mohammad Uzair

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