Over two-thirds of the world’s population lives in countries with high poverty levels. In many cases, individuals live in poverty because they do not have enough education, enough health care, or sufficient income to meet their needs. Some people become trapped in poverty because of family problems that cause separation from a parent or a lack of job opportunity. Others become trapped because of demographic disparity – because a smaller percentage of a population is white and more of that population lives in poverty.
But even within these countries, there are differences in wealth and in standard of living. Because of globalization, there has been increasing globalization-ization of poverty. Different nations see changes in the distribution of wealth and development opportunities as a result of globalization. This globalization means that some countries have better life standards than others, but the gap between rich and poor becomes larger still when we look at the world as a whole.
Globalization has also increased the disparity in distribution of goods and services. A common phenomenon in developing countries is the emergence of spatial inequality in education, health, and poverty. Spatial inequality refers to differences in the opportunity to access educational institutions, health care services, and jobs. Geographical inequality can be due to political and cultural differences, the type of land (landlocked versus coastal) and the level of development desired by a population. These differences cause spatial gaps in opportunities for education, health care, and job availability.
The increasing trend of globalization means that individuals have become connected through technologies such as the internet. Unfortunately, this connectivity leads to geographical gaps, as individuals have become isolated from each other. This isolation breeds political, social, and economic inequality. For example, through the internet, rural dwellers in poor countries can access jobs and educational opportunities with relative ease. Yet, if the political infrastructure of these countries is less developed, the quality of the available jobs and educational opportunities are lower, making it harder for the rural dwellers to bridge the gap between themselves and urban living.
This emerging global inequality has an equally disturbing impact on economic policies. Policy makers across the world are trying to address the uneven economic growth occurring at the global level. One way they do this is to use trade barriers to protect domestic industries at the national level. For example, some developing countries have adopted protectionist policies that limit foreign imports, increase tariffs on imported goods, or demand fees for imported goods. Some developing nations, such as India, also restrict entry of computers and restrict digital technology firms from outsourcing to domestic customers. In response, developed countries with advanced industrial capacity that can produce goods at a lower cost are creating barriers to entry of these cheap goods.
Another tool adopted by developed countries to address globalization and its effects on poverty is immigration restriction. Since the 1980s, most developed countries have restricted immigration, even for skilled workers, to the extent that many cities have anti-immigrants riots against such measures. Globalization’s effect on inequality within countries also means that goods and services can be produced closer to the centers of cities, resulting in more uneven development. A few decades ago, the concept of globalization was not well understood by ordinary people. Now, the impact of globalization is becoming much clearer.
Spatial mismatch also contributes to global inequality. Since the turn of the millennium, many developing countries have achieved rapid economic growth, yet their political systems are still weak and their economic spaces are not well developed. Access to necessary infrastructure, such as schools and hospitals, is expensive and many rural residents remain deprived of such facilities. This spatial mismatch also makes it difficult for poor families to access the technologies and jobs that are available in big cities. As a result, more people are stuck in poverty and many find themselves permanently divided between rural and urban areas.
This growing spatial mismatch between cities and villages calls for more development in the countryside and the establishment of more economic spaces in the cities. A handful of developed countries, most notably India, have made encouraging the expansion of rural development a top priority. A number of innovative policies, such as grants for setting up small enterprises and easier availability of credit and other financial instruments have helped improve the conditions of the poor in the cities. However, political concerns, environmental issues, and lack of technology for efficient communication and other business practices have prevented more people from living in the countryside. This has led to an increase in the disparity between urban and rural poverty, with urban areas becoming more unequal than before.
