Globalisation Increasing Economic Inequality Economics Essay

Globalisation Increasing Economic Inequality Economics Essay Globalisation has been integral in the way the world is shaped today; politically, culturally, and especially, economically and technologically. It can be described as the process in which the nations of the world have become more connected, and as McGrew (1992) expresses, the effects of changes in one country become felt around the whole world. Often this interconnectivity is beneficial, as countries experience growth due to sharing advances in technology and expanding markets. However, globalisation does not benefit all equally. There is also the ugly side of globalisation; the exploitation of developing countries, the monopolisation of industries by giant corporations, and the effects of weak policy on a nation. While the idea of globalisation seems to embody ideals such as progress and development, it is not ideal as it currently stands, and the gap between the developed and developing world will not be closed if the paradigm does not change. Globalisation has affected the worlds economies to the degree that the current situation can be described as a global market where every entity is forced to compete on the same stage. This obviously disadvantages the smaller players in the world market, especially the independent manufacturers and producers, as they compete with multinational corporations. This is further compounded in developing nations where the systems that are in place are not as developed as in advanced nations. There are systems currently in place to counteract the monopolisation of dominant corporations such as the Organisation for Economic Co-operation and Development (OECD), and other countries have their own laws concerning the matter. However, many nations are being overrun by private monopolisation and find it difficult to thwart the power of dominant firms. The interest of private companies to establish their business in these developing nations brings the ideals of anti-competition; which are formed by a combination of globalisation and corruption. In Latin-America there was a study conducted by Clarke et al., (2005), stating that there was 28.7% monopolisation and abuse of dominance and 40% cartelisation. In retrospect, anti-competitive acts are still very high and developing nations may experience a political breakdown or failed state, due to the lack of good governance to provide opportunities for a competitive market, lack of purchasing power and a decreasing labour force. Countries like China and India which have strong monetary ties have become promising leaders in the global economy but they have left the poorer countries unable to compete on the same scale, snowballing the economic divide and limiting foreign direct investment. Some argue that the lack of western protection trade policies has assisted the position in which less developed countries find themselves. The influence of the USA on the world economy is the most obvious we hear about consumer taste being homogeni sed (Ravallion, 2004) to American tastes around the world, which can be demonstrated by the popularity of American brands like Apple and McDonalds; brands that dominate their respective markets on a global scale. Hence, while globalisation allows products to become more accessible by allowing consumers to exercise a freedom of choice, those companies who do not have the resources or systems in place to compete on the global stage are severely limited to the local market and hence are being left-behind. Another consequence of globalisation is that technology and travel is becoming cheaper and faster and it has become increasingly easy for one to interact with another person across vast distances. Distance is less of a problem than it was two hundred years ago and has fundamentally changed the economic system and ideals in positive and negative ways, bringing on a world void of boundaries (Ohmae, 1992). Today we can make a transaction with someone anywhere in the world due to the development of technology that aide in communication and advancement of transportation spreading the free-market around the world. However access to technology around the world is unequal. A large number of the populations in third world countries, such as in Africa, South East-Asia and South America, are impoverished in the information technology age. Although globalisation has the potential to spread technology, a digital divide exists due to the rapid pace at which technology is being developed. While Afr ica contains 15.2% (Population Reference Bureau, 2012) of the worlds population it only contains 2.0% of the worlds telephone mainlines and approximately 90% of internet host computers are concentrated in countries with high gross national income (The World Bank, 2000). Totero and Braun (2006) discuss that information technology has been found to be powerful tools in yielding income generation, enfranchisement and increase in productivity. Less developed countries are at a disadvantage because they may miss opportunities to create market prospects and enhance their countrys economic situation through better connectivity and staying competitive. For example, during tsarist Russia between 1881 and 1913, Minister of Finance Sergei Witte believed that for Russia to modernise they would have to follow in the footsteps of western societies to procreate their own industrial revolution. One of his achievements was the Trans-Siberian Railway, which became a symbol of Russian enterprise. Howe ver, the Russo-Japanese War showed that due to the limitations of having a one-way railway line meant that inadequate provisions and reinforcements could not reach the front in time. Japan on the other hand had rapidly modernised along western lines and had encompassed better technology allowing them to win the war (Lynch, 2005). Overcoming the difference between the development of countries for the privileged and non-privileged will be a crucial challenge to rectify in the future. It hasnt just been technology that has affected the extent that globalisation has had an effect on economies. Governments have also played a major role on the extent of globalisation, mainly by removing the barriers that stop it from happening, which is a reflection of the ideals of neo-liberalism, such as privatisation and deregulation, which promotes globalisation. Privatisation is good news for the whole distribution of income earners due to the increase of access to services such as electricity and water. Before privatisation came about, access to services was limited due to the lack of competition resulting in higher prices. However, in small economies that have limited domestic competition and have big governments, larger companies who hold core market values under privatisation may not be able to tackle the pressure of international competition and may lose the benefits of privatisation, with their cash flow essentially being locked into investments. In Latin American countrie s such as Argentina, Brazil, Chile, Mexico and other Caribbean countries, less than half of those nations championed privatisation as a heralding benefit. Political risks that arose in Mexico in the 90s, due to political turmoil, had bank owners and debtors trying to rescue the economic status. Privatisation in this case did not lighten inequality of income or privileges; rather it fixed the country into trying to alleviate the stress of the previous regime (Castaà ±eda Sabido, n.d.). Hence, privatisation is a viable prospect for some countries that could see benefits due to an increase in market competition, however it must be supported with strong institutions which support market transparency, and have freedom from political interventions. If these crucial supports are not established, privatisation may prove to only assist in furthering the gap of the economic statuses between nations. Globalisation produces an unequal distribution across different levels of income. This arises from the constraints of ineffective trade policy resulting in income declination for those in absolute poverty. A study on trade outcomes of the labour market and trade reform was discussed by Harrison (2007) examining reductions in tariffs in Mexico during the 80s and 90s. The results revealed a high rate of poverty was linked to the increase in import competition, which in turn increased the possibility of unemployment. Furthermore, external competition often drives prices down. This was illustrated in the study with an increase in corn imports resulting in cheaper Mexican corn. This did not benefit the Mexican farmers whose livelihoods depended on the real income provided by their crops. On the other side of the coin, the study also concluded that an increase in export growth resulted in a rise in minimum wage and a reduction of informal sector employment due to the increase of opportunit ies for companies to expand. Moreover, a burgeoning market provides more incentive for investors to invest in the local market. Thus, it becomes clear that effective trade policy is an essential key to paving the road towards a successful domestic market and thus alleviating some of the causes of poverty within a nation. The divide between the polarities of the economic spectrum is still increasing. The capability for multinational cohesion to enhance the economies and markets of nations, especially poorer nations is still constrained by the prerequisites of facilitating the adoption of globalisation. While larger nations and governments within nations have set policies and reforms to counteract the ugly side of globalisation there is still the prospect of hungry organisations that want to reap monetary gains indifferently. More competitive and transparent nations will gain more access to assets such as technology and useful forms of tools that will enhance the reaches of their own economic market but not necessarily help poorer nations with bettering their market outreach. Political and social tension is the result as poorer nations undergo challenging transitions to try and catch-up and reverse the worsening of economic inequality. Better protection is needed by making the market non-discriminatory by understanding negative spill over, in that, domestic finance and activity is sometimes worsened by the activity of offshore markets. Without this understanding, from both sides, the benefits of a more united and global market would undermine the development of the world.

Brave New World :: essays research papers

Brave New World by Aldous Huxley is a novel that takes place in Utopia. Yet in this ideal place everyone is conditioned to be happy, it is a place where various things such as the arts are restricted so all people will be synchronized in thinking. Love and commitment does not exist but rather everyone belongs to everyone else. This place is also a place where soma holidays help people escape from their realities and never have its society feel any kind of distress or illness. This place was not Utopia to John â€Å"the Savage,† it was rather a place of hell and torment which none of the things he enjoyed and loved existed. In the novel, freedom of the individual will is one of the fundamental beliefs at the root of human ideals. While the environment or the public world (society) plays some part in forming the psyche of an individual, it is in the end, the choice of the individual (John) to be who they become The whole concept of Brave New World contradicts to everything John ever believed in. John came from a world where art and expression of variation from the society existed. People must face their problems and overcome them, and love requires commitment and is greatly appreciated. John was rather a Renaissance man trapped in a world where none of his necessities in life existed. He was disgusted at their orgy-porgies, their belief of take, take, take not give, give, give. Total happiness did not exist to John in a world which lacked expression of the arts. It was rather total torment. Throughout the novel John continues to fight and believe for what he believes in while the surrounding environment continues to pressure him and submerge him into Utopian ways of life. The conflicts which were faced upon his arrival were of devastation. His life grew lonelier and lonelier each day with his dissatisfaction with the crude nature and refined society of the Utopians. He was trapped in a tedious world where there was nothing to do. John symbolizes the artist or the believer striving for ecstasy. Yet in a world of synchronized life, lack of arts, unrequited love, and â€Å"runaways† it is impossible to find ecstasy. He finds nothing worth living for in the ordinary world and strongly regrets his leave of the reservation in coming to this â€Å"boring† world. Clearly he is the image of a man trying to liberate himself from his own egotism.

When the Emperor Was Divine

The Emperor Was Devine is a novel by Julie Otsuka. The novel tells the agony that a Japanese family went through during World War II at the internment camps. Through the story, Otsuka aims to show the disbelief, despair, humiliation, and resignation of the people settled and living in the United States and the current events despised and marginalized them. By illustrating the loss of identity of the Japanese family, the author demonstrates what may people had to go through in the internment camps. The novel brings the history of America the power oppressed the people who settled in the country.By analyzing the loss of identity of the characters in the book, the paper will derive the Japanese Americans sufferings at the time and at the same time drawing the history of America where the power used to oppress these people. The writing style adopted by the author aims to demonstrate the nature of life of the Japanese Americans in America during the World War II. Otsuka chooses not to nam e the main characters but instead refers them to the father, the mother, the son, and the daughter. However, the author gives many minor characters names.In writing, naming of characters provides the author and the reader with an easier task. The readers will follow the story and the roles of the characters of a novel when the author has named them. However, the author chooses to refer to the main characters with their titles. The reason for choosing this writing style is that it enables the author to portray a special meaning to the nameless characters. Choosing not to give names to the main characters in the novel shows the loss of identity of the nameless. The novel portrays that the characters have names, but the author does not refer to them by their names.The characters also have difficulties in using their names in the American society where they live. When the mother and the children leave the internment camp, they discover that many things have changed and are not willing t o use their names because they think that their names might cause trouble for them. The children say that â€Å"We will change our name†¦we would never been mistaken for the enemy again. † (Otsuka 114). The statement by the children shows that they are not the only family undergoing the problems.The statement shows that anyone identifying with the Japanese community has the problems using their identity. The children want to change their names to be similar to the Native Americans. The statement also shows that the Americans viewed the Japanese as the enemy. The children were even ready to keep silent if their mother was to call them on their real names, as the people will know their identity. Here, the author illustrates the loss of identity of the Japanese Americans. The Japanese in America have to behave in the same way as the Native Americans, which is not by choice but circumstances force them.Through this, the author demonstrates the hardships that the Japanese Ame ricans went through in the hands of the Native Americans. Here, the author shows the despair of the Japanese. The nameless Japanese in the internment camps lived a cruel life. The Japanese had to live under supervision all the time. The Native Americans deprived of them their freedom. Leiding talks of the theme of freedom on his review, â€Å"†¦themes of freedom and banishment†¦Ã¢â‚¬  (Leiding 1). Everything the Japanese had to do was to be under the supervision of guards. For example, the fences kill one man in the camps.The guard said that he had armed the man but he did not hear of anything. Here, the author aims to show that the Japanese lost their freedom together with the loss of their identity. The guard kills the man because he thinks that he is intractable. By killing him, he deprives him his dignity and thus his identity. Here, the author demonstrates the humiliation the Japanese went through. The Japanese did not have the right to own property. For example, wh en the family came back from the internment camp, they found that they could not live in that house again because new people had occupied their house.Although a lawyer was to rent their house off when they were away, they could not find any records. After that, the mother struggled to raise her children as their father was in jail. Here, the author demonstrates the discrimination by the authorities, as the authorities could not protect the property of the family just because they were Americans (Seaman 1). At last, the family admits that the authorities have deprived them many rights, and for that reason, they cannot protect their property.Here, the author demonstrates their resignation. Conclusion The novel by Otsuka aims to portray the humiliation, despair, and resignation of the Japanese Americans during the World War II. The authorities discriminated the Japanese Americans in the society and denied them basic freedoms and rights such as freedom of movement and the right to own p roperty. The authorities killed or arrested the Japanese Americans who were defiant. For that reason, the Japanese Americans lost their identity leading to despair and resignation. When the Emperor Was Divine The Emperor Was Devine is a novel by Julie Otsuka. The novel tells the agony that a Japanese family went through during World War II at the internment camps. Through the story, Otsuka aims to show the disbelief, despair, humiliation, and resignation of the people settled and living in the United States and the current events despised and marginalized them. By illustrating the loss of identity of the Japanese family, the author demonstrates what may people had to go through in the internment camps. The novel brings the history of America the power oppressed the people who settled in the country.By analyzing the loss of identity of the characters in the book, the paper will derive the Japanese Americans sufferings at the time and at the same time drawing the history of America where the power used to oppress these people. The writing style adopted by the author aims to demonstrate the nature of life of the Japanese Americans in America during the World War II. Otsuka chooses not to nam e the main characters but instead refers them to the father, the mother, the son, and the daughter. However, the author gives many minor characters names.In writing, naming of characters provides the author and the reader with an easier task. The readers will follow the story and the roles of the characters of a novel when the author has named them. However, the author chooses to refer to the main characters with their titles. The reason for choosing this writing style is that it enables the author to portray a special meaning to the nameless characters. Choosing not to give names to the main characters in the novel shows the loss of identity of the nameless. The novel portrays that the characters have names, but the author does not refer to them by their names.The characters also have difficulties in using their names in the American society where they live. When the mother and the children leave the internment camp, they discover that many things have changed and are not willing t o use their names because they think that their names might cause trouble for them. The children say that â€Å"We will change our name†¦we would never been mistaken for the enemy again. † (Otsuka 114). The statement by the children shows that they are not the only family undergoing the problems.The statement shows that anyone identifying with the Japanese community has the problems using their identity. The children want to change their names to be similar to the Native Americans. The statement also shows that the Americans viewed the Japanese as the enemy. The children were even ready to keep silent if their mother was to call them on their real names, as the people will know their identity. Here, the author illustrates the loss of identity of the Japanese Americans. The Japanese in America have to behave in the same way as the Native Americans, which is not by choice but circumstances force them.Through this, the author demonstrates the hardships that the Japanese Ame ricans went through in the hands of the Native Americans. Here, the author shows the despair of the Japanese. The nameless Japanese in the internment camps lived a cruel life. The Japanese had to live under supervision all the time. The Native Americans deprived of them their freedom. Leiding talks of the theme of freedom on his review, â€Å"†¦themes of freedom and banishment†¦Ã¢â‚¬  (Leiding 1). Everything the Japanese had to do was to be under the supervision of guards. For example, the fences kill one man in the camps.The guard said that he had armed the man but he did not hear of anything. Here, the author aims to show that the Japanese lost their freedom together with the loss of their identity. The guard kills the man because he thinks that he is intractable. By killing him, he deprives him his dignity and thus his identity. Here, the author demonstrates the humiliation the Japanese went through. The Japanese did not have the right to own property. For example, wh en the family came back from the internment camp, they found that they could not live in that house again because new people had occupied their house.Although a lawyer was to rent their house off when they were away, they could not find any records. After that, the mother struggled to raise her children as their father was in jail. Here, the author demonstrates the discrimination by the authorities, as the authorities could not protect the property of the family just because they were Americans (Seaman 1). At last, the family admits that the authorities have deprived them many rights, and for that reason, they cannot protect their property.Here, the author demonstrates their resignation. Conclusion The novel by Otsuka aims to portray the humiliation, despair, and resignation of the Japanese Americans during the World War II. The authorities discriminated the Japanese Americans in the society and denied them basic freedoms and rights such as freedom of movement and the right to own p roperty. The authorities killed or arrested the Japanese Americans who were defiant. For that reason, the Japanese Americans lost their identity leading to despair and resignation.

Implementation of Student Loan Asset-Backed Securitization...

IMPLEMENTATION OF STUDENT LOAN ASSET-BACKED SECURITIZATION IN MALAYSIAN HIGHER EDUCATION. (A STUDY CONDUCTED AT MALAYSIAN ECONOMY IN THE ASIA) Paper no.60 ABSTRACT The research is to investigate the alternative financing in Malaysian Higher Education by introducing student loan securities as a type of asset-backed securitization. It will analyse and consider possible effects in order to relieve the pressure currently imposed on the Government Budget. The aim of this research is to identify the outstanding systems financed by capital market and banking systems in the United States and Chile and suggest how a similar system can be adopted to improve the National Higher Education Fund Corporation (PTPTN) as main corporation†¦show more content†¦This research considers the role of government as a guarantor without burdening its financial capacity. However, the private capital markets and banking systems will become key players to provide financial resources to students. My study confirms the promising trend in Malaysia after the introduction other types of asset-backed securities such as lease, auto loans, credit cards receivables and commercial mortgages. This advanced financial techniques instruments had help to minimized the risk and reduce part of the social problem. Though only spanning over sixth years, the securitization process and its continuous innovation have contributed to resolving and risk managing problems in Malaysia. SCOPE AND LIMITATION OF THE STUDY The scope of this research particularly focuses on the student loans problem, which has not been involved yet in Malaysia. The work considers the characteristics of National Higher Education Fund Corporation (PTPTN), suggests a structure for student loans securitization, and study the potential of the asset-backed securitization process in resolving the student loan problem. A limitation for this research is that we will able to focus only on the United States and Chile student loans systems, as that process is not yet implemented very broadly worldwide. The United States has implemented the federal Family Education Loan Program (FFELP) to provide funds for students.