Globalization and its effect on world poverty and inequality

Hardy Loh Rahim*, Zanariah Zainal Abidin, Selina Dang Siew Ping, Mohamed Khaidir Alias and Azim Izzuddin Muhamad

Accepted 4 June, 2014.

Citation: Rahim HL, Abidin ZZ, Ping SDS, Alias MK, Muhamad AI (2014). Globalization and its effect on world poverty and inequality. Global Journal of Management and Business, 1(2): 009-013.

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Copyright: © 2014 Rahim et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are cited.

Abstract

Poverty is the world’s biggest challenge and the inequality of global wealth distribution is frightening. 80% of the 7 billion people in this world live less than $10 dollar a day and only 5% of global income was generated by the poorest 40% of the world population while 75% of the global income was generated by the wealthiest 20% of the world’s population. Numerous numbers of studies has been made linking globalization towards poverty and the issue has been debated and inconclusive. Thus, this paper discussed the two schools of thoughts regarding this matter - the optimists that believe globalization as the solution of poverty and inequality, and the pessimists that believe globalization as the cause of poverty and inequality.

Keyword: Globalization, poverty, inequality, pro-globalization, anti-globalization