Consequences of Economic Globalization

【Abstract】With the process of globalization speeding up， a variety of issues have arised in developing countries. This paper will elaborate two important issues， poverty and inequality increased by globalization.

【Key words】 globalization；poverty；inequality

【中圖分類號】F114.41 【文獻標識碼】A 【文章編號】2095-3089（2015）35-0002-01

Globalization is the process of international integration arising from the interchange of world views， products， ideas and other aspects of culture. It has become an irreversible trend. It is an all？鄄embracing concept. I will present my views focusing on economic globalization.

Plenty of empirical evidence has confirmed that the process of globalization has powerfully promoted the overall economic growth worldwide. And there is no doubt that economic globalization is dominated by the developed countries， and they play leading roles in the globalization. Thus， the rules and institutions of economic globalization are manipulated by the developed countries. Therefore， they could gain much more interests with less costs. They gain the initiative in the international division of labor due to their own economic strength， industrial and technological superiority. The international specialization of production has brought a huge interest continuously. Lets take multinational corporations for example， with their great advantages， they could distribute the different parts of the product to the subsidiaries in different countries to produce and assembly by paying less for cheap labor and natural resources. Through this outsourcing， the corporations achieve more profit.

However， is it the same picture in the developing countries？ I bet not. Mr. Rubens Ricupero， the former secretary？鄄general， once remarked on UNCTAD in Bangkok， that the economic globalization has led to the imbalance of development in many aspects. For instance， the international institutions on trade and capital have posed obstacles on the development of developing countries. It is reported that the number of the worlds least developed countries have been on the rise. There are 36 least developed countries in 1990， 42 in 1995， and that number has increased to 48 in 2000. At present， there are more than one billion people living in poverty， which is living on less than one US dollar per day. They havent gained any benefits of economic globalization， neither had they had opportunities to contribute to the process. For them， they are unable to handle the knowledge， technology and the rapid change of information flow， they also lack of certain skills. So， we could say the economic globalization does increase poverty and inequality in developing countries.

But， at the same time， we are supposed to see the whole picture. Economic globalization is a double？鄄edged sword. First of all， economic globalization has also given developing countries great opportunities for employment， with which they export labor？鄄intensive products to developed countries to increase foreign exchange income. Secondly， with the process of economic globalization， capital flows into the developing countries including technology and market share， while they would face more intense competitions from the outside world at the same time. Also， they have to face more uncertainty of financial security simultaneously. Thirdly， economic globalization has further expanded the disparity between developing countries； likewise， it is the same circumstance within the developing countries. We should be fully aware that inequality of income between the nations is still increasing， especially between the developed countries and the developing countries. In some cases， the developed countries utilize various means of non？鄄tariff barriers in order to effectively prohibit the low？鄄cost products from developing countries to enter their market， particularly， the use of quota and the “anti-dumping” punishment.

As for these challenges， Chinese president once put forward the concept ‘inclusive growth， which advances equitable opportunities for economic participants during economic growth with benefits incurred by every section of society. In order to achieve it， countries worldwide should build up new ways of cooperation and carry out constructive dialogues.

作者簡介：

張心悅，山西財經(jīng)大學經(jīng)貿(mào)外語學院2013級外國語言學及應(yīng)用語言學碩士研究生。