Resolved: On balance, economic globalization benefits worldwide poverty reduction 3
Download 1.02 Mb.
|
- Navigate this page:
- Routes Through Which Globalization Impacts Poverty
- “Extreme” Poverty Defined
- 1.22 Billion Live in Poverty Now 1.22 billion people live in extreme poverty now
- “Poverty” Defined “Poverty” includes social, political, and environmental deprivations
- Poor are those who lack access to safe drinking water, health care, education, and housing
- Poverty is to live with a lack of necessities
- Poverty can be defined as those living at the bottom half of the wage level
KOF Globalization IndexKOF Globalization IndexAndres Bergh, Therese Nelson, October 2014, Lund University, Sweden, Research Institute of Industrial Economics (IFN), Stockholm, Sweden, Is Globalization Reducing Absolute Poverty? World Development, pp. 42-61 Our measure of globalization is the so-called KOF Index developed by Dreher, 2006a and Dreher, 2006b and updated in Dreher, Gaston, and Martens (2008). The index quantifies economic, social, and political globalization, using principal components analysis, to construct an aggregate index that is comparable over time and between countries from 1970 and onward. The index also allows for a separation between different dimensions of globalization, is updated every year, and is available on the web. Table 1 and Table 11 and in the Appendix presents the details of the index. 4 Routes Through Which Globalization Impacts PovertyEconomic routes through which globalization impacts povertyF. Wu, economist, Cardiff University, 2012, International Encyclopedia of Housing and Home, “Globalisation,” pp. 292-7 Globalization means greater economic integration manifested through increased openness via numerous transmission mechanisms such as trade and investment liberalization; movements of capital, labor migration across borders and within countries; the nature of technological change and diffusion of knowledge and technology; the worldwide information flows; and institutional environments. These mechanisms affect poverty through two different paths: first, through their contributions to the growth channel (in the upper part of the diagram in Figure 1) and, second, through their impact on income distribution (in the lower part of the diagram) since globalization is also known to create winners and losers directly and affect vertical and horizontal inequalities. The specific links shown in Figure 1 are from openness to growth, from openness to income distribution (inequality), from growth to income distribution and vice versa, from growth to poverty, and from income distribution to poverty, respectively. In turn, the two main channels of globalization—the “growth” and “distribution” channels—further interact dynamically over time to produce a growth–inequality–poverty triangular relationship, which is captured by the right-hand side triangle of our diagram describing the arithmetic-statistical relationship among growth, inequality, and poverty investigated and popularized by Bourguignon (2003).I “Extreme” Poverty DefinedExtreme poverty is living on less than $1/dayAnish Bharadwaj, 2014, International Max Planck Research School for Competition and Innovation, Munich Centre for Innovation and Entrepreneurship Research, Advances in Economics and Business 2(1): 42, p. 42-57 This fear may not be universal, but it does play a role in the public perception that cannot be ignored. More than 1 billion people live in extreme poverty, which is defined by the World Bank as subsisting on less than 1 dollar a day1. 1.22 Billion Live in Poverty Now1.22 billion people live in extreme poverty nowKayla McMurry, 2014, "Factors in Poverty Alleviation: the Globalization, Growth, Inequality, and Growth Nexus" (2014). University of Tennessee Honors Thesis Projects. http://trace.tennessee.edu/utk_chanhonoproj/1731 DOA: 1-2-15
“Poverty” Defined“Poverty” includes social, political, and environmental deprivationsOkungbowa, Florence. O. Ewere, Eburajolo, Ose Courage, Benson Idahosa University Department of Economics, Banking and Finance Benin-City, Nigeria, September 2014, International Journal of Humanities and Social Science, Globalization and Poverty Rate in Nigeria; An Empirical Analysis, http://www.ijhssnet.com/journals/Vol_4_No_11_September_2014/13.pdf DOA: 1-2-15
Okungbowa, Florence. O. Ewere, Eburajolo, Ose Courage, Benson Idahosa University Department of Economics, Banking and Finance Benin-City, Nigeria, September 2014, International Journal of Humanities and Social Science, Globalization and Poverty Rate in Nigeria; An Empirical Analysis, http://www.ijhssnet.com/journals/Vol_4_No_11_September_2014/13.pdf DOA: 1-2-15
Raphael Kaplinsky, Professor of International Development, 2005, Globalization, Poverty, and Inequality: Between a Rock and a Hard Place, page number at end of card To most people poverty means the inability to sustain livelihoods – inadequate shelter, too little food to stay alive and active, helplessness to withstand the elements, and the prevalence of ill-health. The pioneering study of poverty by Seebohm Rowntree in York, England, at the turn of the twentieth century, for example, defined it as occurring in families where ‘total earnings are insufficient to obtain the minimum necessaries for the maintenance of merely physical efficiency.’ 1 Yet what do we mean by ‘necessities’? As Adam Smith pointed out in 1776, ‘[ b] y necessaries I understand not only the commodities which are indispensably necessary for the support of life, but whatever the custom of the country renders it indecent for creditable people, even of the lowest order, to be without.’ 2 So, the definition of an absolute standard of living is not without its problems, notably with respect to the contextual definition of necessities. This difficulty is compounded when we compare living standards between people or groups of people. What numeraire (that is, what unit of measurement) should we use? Physical parameters can provide a means of comparison. But they are not always homogeneous – for example, a calorie obtained from eating complex carbohydrates provides for longer-lived streams of energy than that produced by simple carbohydrates; and how would we define an ‘active life’, or one ‘free from ailments’? This heterogeneity of physical measures is dwarfed by the difficulties which arise when the numeraire is money. Here the problem is that not all consumers pay the same prices for the same products or services. This is true within a country – for example, characteristically it is said that ‘poverty is expensive’, that is, the poor tend to pay more than do the rich even when they purchase the same good. But it is even more the case when monetary values are used to compare incomes across countries – a dollar in Geneva buys considerably less than a dollar in New Delhi. Poverty can be defined as those living at the bottom half of the wage levelRaphael Kaplinsky, Professor of International Development, 2005, Globalization, Poverty, and Inequality: Between a Rock and a Hard Place, page number at end of card The comparison of absolute standards of living across countries using PPP dollars hints at a second meaning to the concept of poverty. In the early 1970s Townsend produced a seminal study of poverty in the UK. He concluded that, although absolute poverty was of major concern, it was too limited and needed to be complemented by a focus on relative living standards: ‘Poverty can be defined objectively and applied consistently only in terms of the concept of relative deprivation.’ 3 This distributional perspective on poverty has diffused widely over the past two decades and, for example, forms the basis for the estimations of poverty in the EU – defined as those living on less than half the average wage level in each country. It is notable, however, that distribution does not surface in any of the Millennium Development Goals, all of which are focused on the elimination of levels of absolute poverty. Kaplinsky, Raphael (2013-04-29). Globalization, Poverty and Inequality: Between a Rock and a Hard Place (Kindle Locations 753-759). Wiley. Kindle Edition. Directory: uploads uploads -> 587 Return function, r i(X) r i(0) r i(1) r i(2) r i(3) 1 0 2 4 6 Thermal Station, I 2 0 1 5 6 3 0 3 5 6 10 uploads -> Department of science and humanities department of mathematics part-a questions and answers uploads -> The Case Against the nypd’s Quota-Driven ‘Broken Windows’ Policing What Is It? uploads -> For want of a nail uploads -> Ownership Models There are two different types of ownership models uploads -> Police Militarization uploads -> City of rising star regular meting thursday, july 14, 2016 uploads -> Township of winfield uploads -> Stop Militarizing Law Enforcement Act of 2014 uploads -> The Black Panther Party’s Ten-Point Program What We Want Now! Download 1.02 Mb. Share with your friends:
|