Globalisation can be
defined as the increasing cross-border interaction and integration of various
aspects of human activity. Based on this view of globalisation, identify one
problematic area of the phenomenon and discuss its influence on contemporary society.
What actual or possible means are there to ameliorate the issue you have
highlighted?
In contemporary society, the living conditions and
lifestyle of people has been greatly affected by the impacts of globalisation. A
significant influence would be its contribution to the great improvement in the
economic aspect that is seen today. However, along with the great benefits it
brings, there is a downside to it. One such problem that is causing many issues
worldwide, is the increasing trend of income inequality. Big countries labels
the problem of this disparity as one of the top two issues which resulted from
globablisation, highlighting the need to address it (Kohut & Wike, 2013). Existing solutions such as
education and mandatory savings attempt to resolve this problem.
The economic
growth brought about by globalisation has helped to increase the income of the
people, but this benefit is not enjoyed by everyone in different social
classes. This income disparity occurs when people who has better economic
status managed to gain from the growth, whereas those there are less well off,
suffers the opposite consequence. In order to alleviate this issue, governments
around the globe has implemented policies, hoping to bridge this gap between the
poor and the rich. An example of a solution, would be the provision of
education. (Stiglitz,
2013) Allowing the citizen to attain a
higher level of education, helps them to secure a higher paying occupation,
hence attaining the purpose of reducing the income differences. “These results
also imply that further economic growth in 2007 would have resulted in even
higher wages (and more income inequality) for the more highly educated group.” (Struss,
2011)
However this solution could have a side-effect, depending on the
availability of education to every individual in the country. As education
requires a fee, the already lower social class might be unable to afford this
service, thus it might resulting in the opposite of the intended effect. In
order to ensure that everyone has an equal opportunity in education, the
government could provide subsidies for students who face difficulties in
affording their education. With everyone given a fair chance in obtaining
education, it would be up to the individual to work towards securing a higher
level of education, thus increasing their income.
Another
approach to the issue of income inequality would be the implementation of a
mandatory saving policy. A portion of the income of a working individual would
be set aside as savings, which can be used for healthcare, education and
housing. Singapore has implemented this policy and it was able to help 90
percent of its citizen afford their own houses (Stiglitz, 2013). The savings in the
Central Provident Fund (CPF) ensures that the basic needs of its citizens are
met, it gives the people a better opportunity to improve their social status,
thus reducing the income gap. Despite the advantages it brings, not everyone in
the society is able to benefit from it. People in the lower working class who has
low income tend to need most of their salary in order to get by with daily
necessities, and CPF might actually be disadvantageous to them as it takes out
an amount of their salary. In order to help these people in the lower income
group, government can provide incentives, in the form of subsidies, to reduce
the financial burden that they face. A mandatory saving policy can aid in
reduction of the income inequality, however certain intervention by the
government has to be made to ensure that all its citizen are able to benefit
from it.
With all the economic growth that
globalisation brings, the issue of income disparity arises with it. In an
effort to solve this problem, governments around the globe has provided
education and a mandatory saving policy, as a solution. However they have
limits in their effectiveness, and improvement has to be made to ensure their
benefits are maximised. With the government actively handling the issue, the
people are also required to play a part in order to achieve a better result.
References:
Strauss, S. (2011) The Connection
Between Education, Income Inequality, and Unemployment. The huffingtonpost. Retrieved
from http://www.huffingtonpost.com/steven-strauss/the-connection-between-ed_b_1066401.html
Kohut, A. & Wike, R. (2008) Accessing Globalisation. PewResearch
Global Attitude Project. Retrived from http://www.pewglobal.org/2008/06/24/assessing-globalization/
Stiglitz, J. E. (2013). Singapore’s
Lessons for an Unequal America. The New York Times: The Opinion Pages.
Retrieved from
http://opinionator.blogs.nytimes.com/2013/03/18/singapores-lessons-for-an-unequal-america/?_r=0
