Online Discussion Question
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May 29, 2020
The gap between the rich and the poor stands out as a significant threat to achieving a global economy both currently and in the coming years (Keeley 2015). In recent decades, income inequality has been rising, especially in wealthy countries, hence calling for effective interventions to address this problem. There exist a wide range of factors that cause this growing gap in the disparities of income across nations all over the world. The most notable threats to globalization include the health of trade, immigration policies, and central banking accidents. Income inequality has a vast range of effects, including slowing down the economy and reducing social mobility. Paul collier proposes a considerable number of policies that can help to bridge the growing gap between the rich and the poor.
Collier suggests that good governance is an appropriate intervention to counter the growing disparities in income between the rich and the poor (TED-Ed 2013). Corruption, in particular, is a serious issue that most governments need to deal with, to enable the equal distribution of income amongst its citizens. Corruption undermines development, as most funds intended for various projects go into the pockets of a few wealthy individuals. This situation leaves the disadvantaged members of the society with no income to cater to their multiple needs. In this way, the country is in no position to grow and address its various social problems.
Another significant threat to globalization is the unfavorable trade policies that have notable effects on employment and individuals’ disposable incomes. Greater participation in trading activities allows individuals to raise a considerable amount of income to sustain their various needs. There should be favorable trade policies that eliminate any barriers to trade between countries. This situation will allow most individuals to engage in the sale of their various commodities that generate a significant income.
References
Keeley, Brian. “Income Inequality.” Paris: Organisation for Economic Co-operation and Development (2015).
TED-Ed. 2013. “ The “Bottom Billion”- Paul Collier.” January 17, 2013. Video, 16:52. https://www.youtube.com/watch?v=4k1JlhniQFI