In the world of post globalisation , free flow of goods ,labour and capital is been made easy than ever before with fewer restrictions in place across the boundaries. But the question largely remains how far the world community at large has benefited out of the phenomenon called globalisation is something which is widely debated one often many of expert economist are taking sides for pro-globalization and some against globalisation . Does the world increasingly becoming unequal or has the globalisation is been able to solve the major problems faced by the poor and alienated class . But one thing is for sure yes globalization didn’t provide any respite to the large problems of poverty and job creation but overall situation is not that favorable to consider that the perils of this opening up of markets across the border allow the rich and powerful nations to get access the natural resources and labor at cheaper rate than ever before , so naturally the corollary to fall out of the globalization largely favors the rich and elite class from developing nations to reap most of the benefit.
The recent exit of Britain from European union is direct fallout of globalization where the native aged people from Britain voted in favor of exit from the European union , even the working middle class populations from developed economies once enjoyed the benefits of globalization has started feeling the heat of the gradual slow down of their economies , fall in their wages , subsequent failure to create new jobs which really created a sense of insecurity among the minds of the those who felt that they are losing out opportunities to the migrants from other countries . So the insecurity led the people to vote in favour of Brexit . So even the nations who has largely benefited out of the globalised environment is now facing serious problems internally as well.
Economy of 1% :
As per the latest report from Oxfam 2016 states that big winners of the global economy are rich,They influence the policies and resources in huge away which is actually meant to benefit the common people, they take away resources which are meant to be shared among others , they park their huge wealth outside the control of their government , involve in ways and means to evade tax on their wealth . As per the figures from Oxfam $7.6 trillion of individual wealth which is more than the combined GDP of UK and Germany. The highly skewed wealth concentration is through inorganic ways by flouting rules by using the loopholes available like tax heavens , So the world economy turns out to be an economy of 1%.
Existing inequality breeds more inequality:
As per the IMF which recently found that existing inequalities compound further disparity among the genders which is in terms of education, healthcare, labour market participation and lesser representation in parliament . so a majority of people who are poor are marginalised with lesser representation in policy making , their problems and concerns are inadequately addressed . The elite and richer nations are designing policies which favour them more. So this trend would throw out larger issues of unrest, exploitation and above all free market economic policies are largely doles out favours to the rich to make them more richer .
Oxfam has calculated that:
- In 2015, just 62 individuals had the same wealth as 3.6 billion people – the bottom half of humanity. This figure is down from 388 individuals as recently as 2010. •
The wealth of the richest 62 people has risen by 45% in the five years since 2010 – that’s an increase of more than half a trillion dollars ($542bn), to $1.76 trillion.
- Meanwhile, the wealth of the bottom half fell by just over a trillion dollars in the same period – a drop of 38%.
- Since the turn of the century, the poorest half of the world’s population has received just 1% of the total increase in global wealth, while half of that increase has gone to the top 1%.
- The average annual income of the poorest 10% of people in the world has risen by less than $3 each year in almost a quarter of a century. Their daily income has risen by less than a single cent every year.
We need democratic Globalisation
According to Joseph Stiglitz famous economist who spoke and written about growing inequality vouches for democratic globalisation which can solve almost all problems faced by the world community , He clearly outlines the need for more openness , transparent policies with democratic values which can make the globalisation workable for a larger population. So in the economist point of view people are looking for greater participation in policy making , rather than being limited them to the fringes with out participation, There is an urge from the majority to participate in the growth benefits, But it is only possible if the world seriously look in to this aspect of allowing everyone to participate in the economic activity.