Position Paper

PENPILLO, JERIC D.
09/15/2021
Is Globalization Good or Bad?
Globalization has become a commonplace, despite the fact that its proponents
argue over its consequences, often violently. Many individuals believe it has
permanently lifted, or has the capacity to raise, millions of people out of poverty. On the
other hand, other people are adamant that it has already pushed millions of people into
poverty and that it must be stopped. Some academic analysts like Stiglitz are torn
between the two points of view: While they acknowledge the potential benefits of
globalization, they think that the power structure of national and international institutions
not only hinders those benefits from being realized, but also turns globalization into a
negative force that harms millions.
Globalization as a process of nation’s coming together through the exchange of

ideas and technical breakthroughs, as well as international trade and the movement of
labor and wealth across national borders. It's a process that's been going on for almost
as long as records have been kept, and its reaped enormous rewards. Because
globalization entails change, even those who stand to benefit from it are often wary of it.
When things change, some people lose short-term. But, like breathing, globalization is a
process that cannot or should not be stopped; nonetheless, if there are clear ways to
make breathing easier and better, one should do so.
In the last fifty years, economic growth has been faster than in previous
centuries. Leading nations like Britain, for example, expanded at an average yearly rate
of 1.5 percent per capita in the nineteenth century. However, in this period of
globalization, many countries have attained yearly per capita growth rates of 5 to 8%.
So, what's the deal with the higher growth? “A key factor is growth and globalization
have gone hand-in-hand,” says Anne O. Krueger, first Deputy Managing Director of the
International Monetary Fund. Faster growth has been substantially assisted by access
to a thriving international market. It has allowed for a level of reliance on comparative
advantage and labor division that was previously unthinkable in the eighteenth century.
Not only has international trade grown rapidly, but it has done so in an atmosphere
where support facilities from other trading nations are easily available. These services—
communications, wholesalers, banking, and insurance—would have been too expensive
for poor countries to supply on their own, putting them at a competitive disadvantage.
Technology transfer, of course, aids in increasing growth rates.”
The location of one's residence is shown to be a determining element of one's

income in the study. The poorest 5% of Germans are wealthier than the wealthiest 5%
of Ivoirians. To put it another way, social classes are less important than where you live.
The ramifications are clear: either poor countries can improve their economy quickly, or
their citizens will be compelled to migrate to more prosperous lands (Devictor, 2014).
Perhaps most intriguingly, the study examines the winners and losers of the
globalization process, revealing numerous surprising results. It is commonly considered
that globalization benefits two primary groups: the “top 1%” and the “emerging middle
class” in countries such as China and India. These feelings are backed up by data.
However, they demonstrate that the income of the "rising middle class" increased at a
quicker rate than that of the top 1%. And that the "rising middle class" accounts for
almost half of the world's population. This is no easy task!
The argument that globalization has worsened worldwide poverty is wrong. The
vast majority of the world's poor live in China and India's rural areas. However, those
two countries have expanded their marketplaces, benefiting the underprivileged.
According to official figures, China's income has increased by 10% each year for the
past two decades, and the number of poor people in the rural population has decreased
from 31% in 1978 to less than 5% in 1998. India's growth rate has accelerated to
roughly 6% per year since liberalization, compared to 3.5 percent in the previous three
decades, and the poor share of the population has decreased from 50% in 1950 to 25%
in 2000. Sub-Saharan Africa is home to the majority of the countries where poverty has
not decreased or even worsened. Their lack of success is due to underlying issues of
conflict and governance, not to liberalization. According to some estimates, the share of
the global population living in extreme poverty (earning less than one dollar per day in
real terms) fell from roughly 55 percent in 1950 to around 24 percent in 1992. Other
poverty measures, such as life expectancy at birth, are also improving.
As a result, there is a pressing need to accelerate economic growth in order to

widen the gap between the “global upper middle class” and the possibly marshy
grounds of the “global upper middle class” as quickly as possible. It also implies that
continuing legislative action is required to ensure that wealth is truly shared by
everyone, that the benefits of globalization are not absorbed by a "happy few," but that
everybody, particularly the poorest, can benefit from the opportunities presented by the
globalization process.
Globalization is, in essence, a process that allows poor countries with favorable
domestic economic and political environments to expand quicker and reduce poverty
more quickly. Countries where corruption is rampant, the judicial system is ineffective or
corrupt, the financial system discourages risk-taking, and civil turmoil and neighborly
conflicts are common are not likely to benefit from globalization.

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PENPILLO, JERIC D.

Is Globalization Good or Bad?

Globalization as a process of nation’s coming together through the exchange of

The location of one's residence is shown to be a determining element of one's

As a result, there is a pressing need to accelerate economic growth in order to

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