Joseph lift millions of people out of

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Joseph Stiglitz, an economist and
winner of the Nobel Prize defines Globalization as follows: Globalization “is the closer
integration of the countries and peoples of the world …brought about by the
enormous reduction of costs of transportation and communication, and the
breaking down of artificial barriers to the flows of goods, services, capital,
knowledge, and people across borders.” (from Globalization and its Discontents)  Role of
World Bank and International monetary fund International
Monetary Fund(IMF):-  Its sole purpose is
to ensure the stability of the international monetary system .The International
monetary system consists of  exchange
rates and international payments that enables countries (and their citizens) to
transact with each other .World
Bank :- It’s role is to aid in sourcing of financial and technical assistance
to developing countries around the world. Negative Effects  of globalization on :-1.Income inequality:- Income can be classified as salaries, wages,
and interest on savings account, dividends from share of stock, rent, and
profit from selling something you are paid for it. Income inequality is the unequal distribution of income
for the same job in the society . In a
report issues by OECD it can be identified that Income inequality in OECD countries
is at its highest level for the past half century. The OECD report
identifies that “The average income of the richest 10% of the population is about
nine times that of the poorest 10% “which is  up from seven times 25 years ago. OECD’s Income Distribution Database shows
that in emerging economies, such
as China and India, a sustained period of strong economic growth has helped
lift millions of people out of absolute poverty. But the benefits of growth have not been evenly distributed and high levels of income
inequality have risen further. . 
The figure depicts the unequal income distribution in various categories
of population. This analysis is done by LAC, a platform for poverty and
inequality analysis.It shows the income distribution of
country and regional level for different years, the horizontal axis illustrates
the proportion of population and vertical axis defines the share of income. 8
In past few years, income
inequality has risen in most developing and developed countries. Guo 2017
said that there are various reasons to be worried about income inequality, as
it increases the chances of unequal life opportunities, creates disparities in
health and life expectancy.p.1 The IMF’s on income inequality
describes by how fiscal policy help governments to tackle high levels of income
inequality and benefit economic growth 10The IMF
said in a separate report that workers were receiving a substantially smaller
share of national income than in the 1980s, blaming technological change and
globalisation for 75% of the decline. It said rising inequality had accompanied
the shift in national income away from labour and towards capital.
Middle-income jobs had been hollowed out and the benefits of growth had gone
increasingly to the owners of capital.2. Culture:- Culture deals with beliefs, thoughts, ideologies and pathways one believes in.
It is the identity of person’s
origin which is now, greatly affected by globalization. People feel
disconnected from their roots as cultures have integrated with one another. No
doubt, emergence of bonds globally is magnificent, but it should not be at the
cost of distinctiveness one’s culture. Additionally, it is perceived that
native tongue will disappear one day, the pace at which countries are becoming
multi-cultural. Amalgamation of local culture with western culture has put the
existence of regional culture to end. Besides, globalization prompted people to
consume modern food and they easily get influenced by foreign culture. In
present era, youth prefers to eat fast food over traditional cuisine. It is,
further, analyzed that the old items have been destroyed for constructing new
ones as well as folks adore western style and festivals that is depleting cultural heritage. Instead of learning
new customs, masses are losing their cultural values. Not only individualism is
losing but also local opinions get undermined by western culture as their
perspective is considered worthless and incorrect. World bank and IMF has significantly contributed in vanishing cultural
background. The case gets even worse when the gap between rich and poor widens due
to globalization. Undoubtedly, World Bank puts every effort to improve the
situation yet the population is unable to reside in their culture. It’s
happening because of the projects financed by the bank. People are forced to
move from their original places detaching them from their indigenous area.
Along with physical and financial pain people experience emotional pain too.
The projects are not properly evaluated by international organizations. It is
estimated that in last 10 years more
than 3.4 million people shifted from
one place to another. Moreover the resettlement plans are inappropriate which
reflects great failure on the part of the bank leading to cultural deprivation. The development of the world is done by
ignoring the sentiments of individuals.National Sovereignty:-Globalization has negative impact on national
sovereignty of least developed countries and developing countries. It takes
away power of the governments to effectively govern their countries. Multinational
corporations often tend indirectly influence the working of the host
governments. The increase of the number of
international organizations and the expansion of their functions have
undeniably restricted an individual country’s sovereignty to certain extent. The most typical example is the
increasingly extensive involvement of the world’s three leading financial
institutions the World Bank (WB), the International Momentary Fund (IMF) and
the World Trade Organization (WTO) in domestic economic affairs of their
members who are in their debts. The Multinational companies, which developed
rapidly in the second half of the 20th century, are now sharing or are
intruding individual country’s “sovereignty” in the economic domain. Many
of the  of multinationals have been accused of
facilitating or be the part of looting of the natural resources of Democratic
Republic of Congo’s wealth by the U.N in its report “Exploitation
of resources of Democratic Republic of Congo is challenged in Security Council.”In order
to receive help from World Bank and IMF the resource deprived or under
developed countries are required to fulfill conditions which can be against the
rules of that nation. IMF and world bank base their conditions on ‘Washington
Consensus’, which focus on factors such as liberalization of trade, investment
and the financial sector, deregulation and privatization of nationalized
industries. Conditions often doesn’t take into consideration if the IMF or
the world bank will be  able to resolve
the condition of the country. These conditions may further lead to loss of
state’s authority to govern its own economy. Tunisia has become a great example of IMF interfering in its
national reform activities. ” IMF has choked Tunisia” a
report by Guardian suggests that Tunisia was provided with three loans by the
IMF  which came with the strings
attached. IMF exerted pressure on Tunisia to stop intervening in the currency
market and controlling the Tunisian dinar.
The result of the dinar’s (imposed) depreciation resulted in  increase of imports at a time when the main
exports of phosphates and tourism are in crisis and cannot cover the  these new costs. This has led to increase in
budget deficit and resulted in chaos in Tunisia. 

From the above analysis it
can be understood that Globalization has played a damaging role for the least
developed and developing countries. It has led to increase in income
inequality, culture degradation and reduction of national sovereignty. Due to
globalization the competition has increased and the easy availability of cheap
labor across the developing countries  has
led to the increase in income inequality. The rich are getting richer and the
poor are getting poorer .  World Bank and
the IMF have merely become the puppets of the developed countries and exploit
developing countries to profit their investors. The development projects
carried out by the IMF and world Bank have led to the displacement of people
which results in the loss of culture. The loans provided by IMF and World
Bank  comes  with the strings attached and the countries
who were loaned get weighed under the unpayable debt. 

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