Will globalization benefit or disadvantage the poor in the world?

Globalization has opened up the international market so that the developed countries could experience faster economic growth. Companies in developed countries begin to outsource in the less developed countries, as there are abundance of cheap labour. Although this maybe seen as exploitation by some, but to the poor, working at factories is at least better than plowing the land and facing the many uncertainties associated. Hence, globalization has benefited the poor by providing them with better working conditions and a more stable source of income in this aspect.

However, another aspect of globalization, foreign aid, has not been so successful. One particular problem came from the functioning of the International Monetary Fund (IMF) and its policies. IMF is founded with the purpose of ensuring global economic stability. However, the policies IMF had designed for many developing countries were not suitable to their context. Also, the IMF is often oblivious to external views other than its own. Developing countries seeking assistance need to fulfill certain ‘conditions’ and would have their funding cut if they did not follow protocol. This often leaves the developing countries with little choice. For example, the financial market liberalization pushed by the IMF had caused mass bank failures in Kenya between 1993-1994 and soaring interest rates ensued. The forced cutbacks in health expenditure in Thailand by the IMF had allowed AIDs to increase.


In conclusion, globalization has its benefits but too often these benefits are not distributed to those most in need of them.

By Yande, Yadi, Arnold, Melissa and Chenxuan