How has globalization affected the global South’s poverty?

Globalisation has both alleviated and exacerbated poverty in the global South through economic growth and inequality respectively.

Globalisation, the process by which businesses or other organisations develop international influence or start operating on an international scale, has had a profound impact on the global South. On one hand, it has contributed to economic growth and development, which has helped to reduce poverty levels. For instance, the integration of developing countries into the global economy has led to an increase in foreign direct investment (FDI). This has created jobs, improved infrastructure, and stimulated economic growth. Countries like China and India have seen significant reductions in poverty due to their integration into the global economy.

Moreover, globalisation has facilitated the transfer of technology and knowledge from developed to developing countries. This has led to increased productivity and efficiency, further contributing to economic growth and poverty reduction. The spread of information technology, for instance, has opened up new opportunities for employment and entrepreneurship in the global South.

However, the benefits of globalisation have not been evenly distributed, leading to increased inequality. While some people in the global South have been lifted out of poverty, others have been left behind. The liberalisation of trade, for instance, has exposed local industries to competition from multinational corporations. Without the necessary support and protection, these industries often struggle to compete, leading to job losses and increased poverty.

Furthermore, globalisation has led to the exploitation of workers in the global South. Multinational corporations often take advantage of lax labour laws and low wages in developing countries, leading to poor working conditions and wage exploitation. This has perpetuated poverty and inequality in these countries.

In addition, globalisation has exacerbated environmental degradation in the global South, which further entrenches poverty. The extraction of natural resources for export, often driven by demand from developed countries, has led to deforestation, soil erosion, and pollution. These environmental issues not only threaten the livelihoods of people in the global South, but also their health and wellbeing.

In conclusion, while globalisation has contributed to economic growth and poverty reduction in the global South, it has also led to increased inequality and exploitation. The challenge for policymakers is to ensure that the benefits of globalisation are more evenly distributed, and that the negative impacts are mitigated.