Based on historical facts and figure as well as the impact of globalization around the world, the question of whether or not the poverty worldwide has been reduced or not arises. After reading “Today’s Golden Age Poverty Reduction written by Surjit Bhalla (2006), the researcher will discuss whether or not poverty worldwide had been reduced. Eventually, the factors that contribute to the increase in worldwide poverty will be elaborated.The number of people who were considered experiencing poverty decline from 1.3 billion individuals back in 1980 down to approximately 500 million in 2000. (p. 22) Despite the hardship that many people are experiencing today, this figure shows that poverty worldwide has reduced by 33.33%.There are quite a lot of economic factors that contribute to the reduction in worldwide poverty. First, India and China – two of the biggest countries around the world that chose not participate in the global economy started to open its market outside the country since the 1980s. (p. 23) The active participation of Chinese and Indians in the global market contributes a lot to the reduction in the number of people who are experiencing poverty. In fact, as much as 1 billion individuals were moved out from the list of global poverty. Political factors such as the reduction on tariff rates or the practice of political liberties also contribute to the increase in the economy of the used-to-be poor countries like China and India. (p. 23) Since tariff rates’ low in developing countries, there is a higher possibility of increasing global demand for its products and services. On the contrary, developed countries maintain a much higher tariff rates as compared to developing countries. For this reason, developed countries become less competitive in a globalized market.Social factor such as the decline in the population rate in developing countries like China and India because of the fact that most of these men and women have become busy building their own career.
Bhalla, S. S. (2006). Todays Golden Age Poverty Reduction: The Story the World Bank and Other Agencies Dont Want You to Know. The International Economy , (Spring 2006): 22 - 26.
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