There are many challenges facing the global economy and these vary poverty, development or climate change. I will be focusing on the unequal distribution of wealth in all across the world and this is very difficult to analyse as the situation in each country is different. GDP method is one of the main ways of measuring a country’s economic growth, however, the problem with that is that does not include the level of income in each house hold and the majority of people often tend to make false judgements through this.
We all know that in today’s world the death toll in these countries is much larger than anywhere else in the world, people in those countries lack basic things to stay alive, they suffer from hunger, they lack safe water and they die as a result of these factors. No one ever wakes up wanting to live under those conditions so there has to be urgent action to tackle the increasing inequality in many of these countries.
If we go back in time we find out that many European countries including Germany, Britain, Spain or France have colonised less able African countries and as result were able to basically steal the natural resources of many African countries which helped them to develop rapidly. One might argue that if the African resources are so valuable why didn’t Africans use them? Well, that would not have been possible due to many reasons. Firstly, the European colonisers and settlers were much more powerful, more educated and had the facilities required to and export commodities to factories in Europe. To understand the level of inequality in the 21st century you do not have to look beyond the fact that some of the former colonies such as France have some sort of control over countries she colonised. This level of exploitation must be stopped if and the world needs to realise that Africans are capable of running their own countries but more importantly as Moalimu Nyerere said before “no nation has the right to make decision for another nation”.
It’s easy to blame countries that are less “developed” when it comes to the unequal distribution of wealth in their own countries but before you do that you have to know the roots of this issue in those countries. Firstly, we all know that the economic gains are not shared equally. There are many reasons for this but corruption remains a main cause for this and we have seen lots of examples where leaders in many of the 3rd world countries have not equally shared the economic gains for their own people. Governments need to realise that the interest of the people always come first so that means that providing the right education, good health facilities and building better roads is essential.
Additionally, constant foreign political interference from the west is also a major issue; their interference has always been a negative one and they have been able to do this through many ways directly or indirectly. Firstly, after World War 2 many organizations such as the IMF and WTO were formed as European countries along with America were getting into periods of globalization. Globalisation is a process of interaction and integration among the people, companies, and governments of different nations. As noble as that sounds it is the single source of inequality in all across the world and one of the ways in which the more powerful countries continue to interfere in many nations’ affairs in the 3rd world. The laws which this “free market” operates is one made by western countries and in today’s world that law is being used to serve the elite with the cost of many people in global south of the world suffering. Until the international law is changed the world will always remain one that is unfair and unjust and always serving the interest of the powerful.
Global markets are far from perfect and globalisation is a noble concept but the laws which the markets serve have to be fair. No country should have the right to act superior or think they can make decisions for other countries. There has to be a reform in the institutions, rules and customs by which globalisation operates and more significantly the people of the 3rd world must demand to be treated with dignity.
- world economic forum. 2012.deepening inequality. [ONLINE] Available at:http://reports.weforum.org/outlook-global-agenda-2015/top-10-trends-of-2015/1-deepening-income-inequality/. [Accessed 02 November 15].
- the guardian. 2015.Income inequality: poverty falling faster than ever but the 1% are racing ahead. [ONLINE] Available at: http://www.theguardian.com/news/datablog/2015/mar/27/income-inequality-rising-falling-worlds-richest-poorest. [Accessed 02 November 15].