A Study On Anti Poverty Charity Oxfam - 2014 Words

Introduction We live in an unequal world and things are not going to get any better. According to a study by anti-poverty charity Oxfam, the wealthiest 1% will own more than the rest of the world’s population by 2016. Globalisation has been one of the main drivers of global inequality. When the Soviet Union fell apart and China started to grow, the global economy received over a billion of new workers. This has brought outsourcing to its peak and the value for unskilled labour has decreased. This has created the complete opposite effect for skilled workers where wages have gone up. Over the years this has created a huge global income gap. Main causes of inequality There is now an intensive trade competition, much competitive than in the past, risen trend in real prices for primary goods – energy, minerals, food and water which boosts inflation and squeezes living standards. In my opinion, in terms of global inequality and its solution, it is about improving the living standards of the poor, rather than make the living standards of the rich worst. Globalisation has increased international trade as well as investment. This has dealt to the signing of international free trade agreements such as the GATT and regional trade agreements. Information costs have also been reduced which leads to a de-fragmentation of the industry. Due to the free trade agreements, companies have started to outsource their production capabilities (mainly) to countries such as China and IndiaShow MoreRelatedWhat are the Advantages and Disadvantages of Area Approaches to Tackling Poverty and Deprivation?1109 Words   |  5 Pagesarea approaches to tackling poverty and deprivation? 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