Analyse the reason as to why it is important to have equitable global distribution of wealth
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global distribution of wealth is common priority between the government and the people of the world
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Hi,
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Globalization has certainly brought a lot. It has helped hundreds of millions of people overcome poverty. A spirit of openness has overcome divisions all over the world and enabled information and technology to be shared between countries and peoples on a scale unprecedented in the history of humankind. New economic powers have emerged and forever changed the balance of economic power.
But globalization has not only had advantages. It has operated with, in the background, a considerable and growing chasm between the rich and the poor - especially within countries. An inequitable distribution of wealth can roll the social fabric. Countries with the highest inequality are those with the worst social indicators, the least advanced human development, and the highest levels of economic security and anxiety. In too many countries, inequality has increased and real wages have stagnated - not benefiting from productivity gains - in recent decades. Worryingly, on the eve of the crisis we have just experienced, inequality in the United States had reached the pre-Great Depression level of the 1930s.
Basically, the growth model that accompanied globalization was unbalanced and untenable. In some countries, growth has been fueled by excessive borrowing; in others, she relied on excessive savings. For a while, we had the impression that this system worked. But the illusion of stability has forever shattered the considerable disruption caused by the global financial crisis. An uncontrolled financial sector took unprecedented risks, ensuring that the inevitable downfall would be particularly painful.
In fact, inequalities may have fueled this untenable model. In countries like the United States, borrowing seemed to allow ordinary people to participate in growing prosperity. Like the Great Depression before it, the Great Recession was preceded by an increase in the share of income held by the rich, an expansion of the financial sector and a significant increase in debt. Inequality may also be at the root of China's export-oriented model, as strong domestic demand requires a well-established middle class, while a low exchange rate goes hand in hand with low real wages. Of course, the unbalanced structure of growth has several causes, but it would be wrong to disregard the role played by the distribution of wealth.
Good bye :)
Your answer :
Globalization has certainly brought a lot. It has helped hundreds of millions of people overcome poverty. A spirit of openness has overcome divisions all over the world and enabled information and technology to be shared between countries and peoples on a scale unprecedented in the history of humankind. New economic powers have emerged and forever changed the balance of economic power.
But globalization has not only had advantages. It has operated with, in the background, a considerable and growing chasm between the rich and the poor - especially within countries. An inequitable distribution of wealth can roll the social fabric. Countries with the highest inequality are those with the worst social indicators, the least advanced human development, and the highest levels of economic security and anxiety. In too many countries, inequality has increased and real wages have stagnated - not benefiting from productivity gains - in recent decades. Worryingly, on the eve of the crisis we have just experienced, inequality in the United States had reached the pre-Great Depression level of the 1930s.
Basically, the growth model that accompanied globalization was unbalanced and untenable. In some countries, growth has been fueled by excessive borrowing; in others, she relied on excessive savings. For a while, we had the impression that this system worked. But the illusion of stability has forever shattered the considerable disruption caused by the global financial crisis. An uncontrolled financial sector took unprecedented risks, ensuring that the inevitable downfall would be particularly painful.
In fact, inequalities may have fueled this untenable model. In countries like the United States, borrowing seemed to allow ordinary people to participate in growing prosperity. Like the Great Depression before it, the Great Recession was preceded by an increase in the share of income held by the rich, an expansion of the financial sector and a significant increase in debt. Inequality may also be at the root of China's export-oriented model, as strong domestic demand requires a well-established middle class, while a low exchange rate goes hand in hand with low real wages. Of course, the unbalanced structure of growth has several causes, but it would be wrong to disregard the role played by the distribution of wealth.
Good bye :)
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