How globalization affects inequality and populism in one chart
Published: June 29, 2017
Global income distribution chart depicted as an Elephant giving it the title as “the most
powerful chart of the last decade.” Images and photos via PBS
Summary:
The article by PBS presents the reoccurring phenomenon known as the Elephant Chart
depicted by Christoph Lakner and Branko Milanovic. The chart illustrates the changes in
income distribution and has been used to support numerous reports of rising inequality
fueled by increasing globalization. Each part of the chart signifies the distinction between
the least developed and the well-developed countries, stating that although some
developing countries' middle classes benefit from the changes, some least developed and
well-developed nations are left stagnating.
Underlying definitions of globalization:
Globalization has become prosperous due to the economic growth of many developing
nations. As a result, this has caused inequality throughout many developed countries'
economies. Some sectors are lucky enough to benefit from the economic growth brought
by globalization; however, to others, like the domestic workers, it has resulted in the loss
of jobs and lower than minimum wages. This has led to an economic gap and the rise of
populist movements, blaming globalization for eroding the nation's sovereignty and
financial stability.
The chart shows the significance of income growth and the global income distribution
being unequal in terms of distribution, leaving dissatisfaction among the general
populace. Support for populist policies promises to address these imbalances, advocating
for protectionist measures such as trade restrictions or reduced immigration to safeguard
domestic workers and industries and even the so-called "elephant chart."
Source:
- https://www.pbs.org/newshour/show/globalization-affects-inequality-
populism-one-chart
Column: Why there’s a backlash against globalization and what needs to change
Published: November 30, 2016
“From the Brexit to the recent U.S. election of Donald Trump, voters across the world are rejecting
candidates and policies in support of globalization.” Photo by Christopher Furlong/Getty Images
Summary:
Ever since the victory of Donald Trump, most British citizens agreed on the Brexit
movement and the rise of aggressive nationalism in Europe; globalization has
become a significant topic as citizens demand to roll back from the growing
interdependence of their nations as they feared the risk involving their jobs and
the entry of immigrants. The article states that globalization has become the
catchword for encompassing rapid and disruptive social and economic change due
to its economically destabilizing and socially disruptive nature. However, one
should look at the different perspectives where the phenomenon should be shaped
and guide it to a more progressive goal; it is to be pointed toward creating more
just and fair outcomes, open to differences but sensitive enough to cultural
connections and social traditions.
Underlying definitions of globalization:
Globalization is defined once again as a mixed bag of benefits and losses. The
backlash is more substantial in regions where workers feel left behind by global
economic changes. These workers blamed free trade and open borders for losing
their jobs because of their impending fear of losing their opportunity to work due
to the rapid increase in immigration. The foreign others became an object of fear
and resentment, whether from immigrants or imported cultures and new ways.
However, though globalization may lead to the loss of one nation’s identity, the
article stated that we should be wise enough not to reject the idea of
interdependence towards the trading of goods in other countries, we should use it
as our tool in leading the country towards a more progressive goal by being open
to differences but aware at the cultural connections and social traditions that it will
brought. Although globalization has become a catchword of economic
destabilization and social disruption, we can use it to create connections with other
nations more sustainably, just, and peacefully.
Sources:
- https://www.pbs.org/newshour/economy/column-theres-backlash-
globalization-needs-change
Globalization isn’t finished, it can unlock new growth and beat the
climate crisis
Published: Oct 15, 2024
“Globalization can be a positive-sum strategy for the planet.” Images and photos via Getty
Images.”
Summary:
Despite the talk of deglobalization, the rise of armed conflict, and hostilities in
Ukraine and the Middle East, to this day, the world remains deeply interconnected; its
economic interconnections are being reconfigured along its geopolitical and regional
lines. Currently, most changes brought by globalization yield many benefits, such as
reducing poverty, low inflation, and inequality among nations. However, inequality within
nations persists, and not everyone has benefited. Such disparities, such as costly
protectionism brought by new industrial policies, outsourcing laborers bringing
competition to their domestic workers, and technological advantages, have become
challenges that erupt due to globalization.
Underlying definitions of globalization:
Globalization in 1960 and during the Global Financial Crises of 2006 and 2007
reflected an optimistic belief that it would produce net benefits, allowing all nations to be
winners. Most countries have embraced the need for globalization, welcoming and
opening their trade routes for all others, which yielded benefits in the meantime, but
inequality arises as time passes. In China, Middle-skill workers are competing against low-
wage workers outsourced from other parts of the world, which has fueled populism in the
nation and protectionist trade and investment restrictions. Nations like the United States
and Europe introduced new industrial policies in key sectors that are criticized due to their
costly form of protectionism; Russia’s invasion of Ukraine violated the rule of international
law and strengthened cooperation between the US and Europe, making China vulnerable.
Amid these tensions, the shared global imperatives remain; the United Nations made
Climate Change their top priority, as they offer collaborative pathways to progress and
develop sustainable technologies, a strategic approach to the industrial policy in green
sectors. The urgency of national security concerns should not come at the expense of
global environmental security, as sustainability for the global environment requires
targeted re-globalization.
Sources:
- https://www.weforum.org/stories/2024/10/globalization-climate-crisis-
growth-economy/
