Globalization and Inequality

by Saki Sato

I report about the occurrence of inequality by globalization. I think globalization has made inequality. In 100 years, advanced nations have developed greatly. But developing nations have not developed much. Advanced nations, mainly Western countries, reached the Industrial Revolution in the 19th century. After that, these countries have expanded a market and developed capitalism. But the development has been sacrificed developing countries.

People in these countries are forced to work for cheap wages. By advanced nations, nature (for example a forest with an abundance of trees) has been destroyed and wild animals have nowhere to go. So an environmental disruption has become important problem.

I think developing nations has become the target of exploitation by advanced nations. Developing nations economies reliant on product export and depend on just one or two products. So if the price of the products fall, the national economy is damaged easily. Moreover advanced nations buy the products at very cheap price. And in problem of genetic resource, multinational corporations rob of genetic resource. So the profit of genetic resource doesn’t distribute enough to developing countries and advanced nations and developing countries stand in opposition. As mentioned, the profit of export doesn’t spread to developing nations. So advanced nations develop more only. The economic gap between advanced nations and developing nations widen.

Next, I write about IMF. IMF was established after the war for global economic growth. But IMF gradually demanded economic reforms in developing nations in exchange for loans with the oil crisis in 1970s as a start. Developing nations were forced a policy of austerity. People’s complaint got worse and they started a riot. The national situation become unstable. IMF interferes in the domestic affairs of another nation that can’t pay off the loan. IMF is formed of advanced nations and the influential voice of developing countries is weak compared with advanced nations. I think IMF’s loan is temporarily good to equip infrastructure. But in the long run developing nations maybe are damaged by intervention of IMF. I think other international organizations are also led by mainly advanced nations so policies are carried out in favor of advanced countries.

I think we need grope for a remedy or solution to narrow the gap between advanced and developing nations.

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