Globalization: Inequality In Developing And Post-Communist Countries

Globalization is the economy of interaction within the countries over the world and the integration of economics and societies in order to exploit the global economy (Scholte, 2005). Globalization contributed towards increasing and decreasing poverty and inequality in developing and post-communist countries. There are affirmative and negative effects for those countries which are able to attract foreign investors and foreign capital throughout globalization (Robertson, 1992). Economic globalization may provide the governments of developing nations an access to foreign lending. The governments can use the loan on country’s infrastructure and this can reduce inequality among the rural and urban areas in a country through enhance living standard. Another importance of globalization to developing and post-communist countries is the free trade between countries (Waters, …show more content…
The government had inquired for help through SAP. The SAP's objectives were to help India to deliver its immediate balance of payments crisis and support the Indian economy by opening it up to more competitiveness to the worldwide. The promptly provision of foreign exchange through IMF helped India to reduce balance of payment crisis yet improve its creditworthiness. India’s GDP growth resumed to 5% in 1993/94 and 6.3% in 1994/95. Moreover, their exports increased almost 12%. Today, the GDP growth of India is 7.8% and the unemployment rate was declined from 10% in 2010 to 9.8% in 2011 (CIA World Factbook, 2012). People got job then only got income then only can escape from the poverty line. There was an increase of foreign investment which brought up almost sevenfold over projections. With the increase of new projects that will eventually bring up the employment rate so the people get a job and then no longer have to live under poverty and everyone deserve to have an equal living