Other Side Of Globalization
By Paul Buchheit
26 February, 2007
leaders are driven by the profit motive, and from a business standpoint
they're unmoved by the plight of the 50% of the world's population that
can't take advantage of capital gains.
The world has experienced
moderate economic growth in the last quarter- century, but the income
gap is growing. According to the 2005 Human Development Report, "The
gap between the average citizen in the richest and in the poorest countries
is wide and getting wider." The lower half of the world’s
adult population today owns just 1% of global wealth.
The income gap WITHIN countries
is also growing. In almost two-thirds of the countries for which data
is available Gini coefficients (a measure of inequality) have been rising
since the 1980s. Workers' share of national income in rich countries
is at its lowest level in 30 years.
A 2003 IMF review found no
evidence that globalization encouraged growth in developing countries.
A World Bank study in December 2006 reported that 14 of the world’s
25 poorest countries experienced increases in poverty over the past
ten years. According to the United Nations Report on the World Social
Situation 2005, the OECD countries that have most vigorously implemented
economic policies have experienced the greatest increases in inequality
within their countries. The money doesn't reach the people most in need.
The New Economics Foundation reports that only 60 cents out of every
$100.00 of world income goes to those in extreme poverty, much less
than in the 1980s before the growth of structural adjustment policies.
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