Inequality is exacerbated by globalization from "summary" of Globalization and Its Discontents by Joseph E. Stiglitz
Globalization has undoubtedly brought about significant changes in the world economy. While proponents argue that it has led to increased economic growth and prosperity, critics point out that it has also exacerbated inequality. This is particularly evident in developing countries, where the benefits of globalization have not been evenly distributed. One of the main ways in which globalization has exacerbated inequality is through the process of liberalization. As countries open up their markets to foreign competition, local industries that were once protected are forced to compete with more efficient foreign firms. This often leads to the displacement of workers in traditional industries, who may not have the skills or education to compete in the new global economy. Furthermore, globalization has also increased the mobility of capital, allowing multinational corporations to shift production to countries with lower labor costs. This has put downward pressure on wages in many developing countries, as workers are forced to accept lower wages in order to compete for jobs. At the same time, those at the top of the income distribution – such as corporate executives and shareholders – have benefited from the increased profitability that comes with lower labor costs. In addition to these economic factors, globalization has also had social and political consequences that have further exacerbated inequality. For example, the erosion of traditional social structures and the spread of Western cultural values have led to the marginalization of certain groups within society. This has resulted in increased social tensions and conflicts, further widening the gap between the haves and the have-nots.- While globalization has undoubtedly brought about many benefits, it has also had the unintended consequence of exacerbating inequality. Without proper safeguards and regulations in place, the benefits of globalization are likely to continue to accrue to those at the top of the income distribution, while leaving behind those at the bottom. In order to address this issue, it is important for policymakers to take a more inclusive approach to globalization that takes into account the needs and concerns of all members of society.
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