Globalization = Inequality?

         Globalization is the term that people have been talking about recently. However, what is globalization? “Globalization is the process of globalizing, transformation of some things or phenomena into global ones. It can be described as a process by which the people of the world are unified into a single society and function together. This process is a combination of economic, technological, socio cultural and political forces.” (Wikiprdia “Globalization”) Some people like the idea of combining because they believe that the combination can bring some breakthroughs for this world; however, there are many people against this idea. Thus, is globalization a good idea?

        There are many organizations that we can call them as the idea of the globalization, such as World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and Maastricht Treaty in Europe. The purpose of establishing these organizations is to have free trade between countries in order to get more profit. For example, the North American Free Trade Agreement benefits the Mexican and Canadian imports because they can be exempted from the American tariffs. This has the similar function in Europe. Before the Maastricht Treaty was signed, people had to get the Visas of all the countries they would travel in Europe. Now, we only have to get one Visa in order to travel the countries that under the Maastricht Treaty. Also, the tariffs are exempted due to the treaty. According to World Bank, world export rose 8.5% of gross world product in 1970 to 16.1% in 2001. Except the economic, globalization can also bring advantages to the society. For example, globalization encourages migration. This is good for a country development because human can bring up some new technologies. It can help the developing countries to build their capital constructions. Globalization seems like bringing many advantages; however, there are many disadvantages too.

Economic Development is part of the GLOBALIZATION

        According to World Bank, globalization can cause several disadvantages, such as income inequality and population health. Income inequality is an economic term. That means the disparity in the distribution of economic assets and income. This problem has been getting serious in the recent years. Many people who live in the developing countries are living under the poverty line. Their salaries are usually paid under the world equilibrium level. Also, many developing countries have not yet joined any treaties within their area. Therefore, they do not get benefits from it. At the same time, they have to limit their exports due to the quota from the other countries. It may cause trade defeat and cause the unemployment problem. In addition, the population movement is another reason that causes the inequality. Due to the high wage, many people tend to move to the developing countries, especially young people. Those people supply labor to the countries that they migrate. On the other hand, the countries that they move away have few labors. It may lead to the reduction of the productivity. Also, the income inequality can threat the health because many these kinds of countries lack of medical technology and have no money to buy medicine.

        Is globalization a good idea? It can be because it brings a lot of advantages to the countries. However, globalization seems to benefit rich more than the poor. In come inequality is one of the problems that globalization causes out. In fact, I believe that even though there are many disadvantages, globalization is still a good idea if we handle it appropriately.   

Gini Coefficient Human Development Index 2007 - 2008. (Source: World Bank)