By: Miranda 8-1
Inequality in India and China: Is Globalization to Blame?
* Many analysts are pointing their fingers at Globalization as the cause of economic inequality
*A report form the Asian Development Bank states that economic inequality now nears the level of Latin America, a region that’s known for its economic inequality
*China which was one of the most equal countries 2 decades ago, and is now among one of the most unequal
*Its Gini Coefficient has now surpassed that of the US (income inequality)
*China may soon reach the high-inequality of countries such as, Brazil, Mexico, and Chile
*The standard reaction is that this must all be as a result of Globalization
*China and other Asian countries have had major global integration over the last two decades
*The expansion of labour-intensive industrialization may have helped introduce larger numbers of workers. (As Chinas economy opened up)
*in-equality increased more rapidly in China's inner provinces, than the more globally exposed provinces.
*It difficult to tell globalization apart from skill-based technical progress
*Globalization has helped eliminate extreme poverty.
*However, the reaction (decline in extreme poverty) may not be globalization
*the Word Bank suggests that the decline may have happened before China took larger steps towards opening up its borders for trade
*India's decline in poverty slowed down around 1993-2005
*Also, India has on of the highest percentages of underweight children.
*Even then, India's pace of poverty is still slower than China's