The topic the student is to address is whether globalization has led to a redistribution of global income. Globalization is bringing developing and industrial countries together in a system of global markets for goods, services, and importantly, factors of production. The figure shows the poor, globally, have gotten richer, the rich have gotten richer, but, the middle class in high income countries have gotten poorer.
This is shown in the figure by the growth in income for the 8-75 percentile range was above average (red dotted line), and also this is true for the 99-100 percentile range. The poorest of the poor, the bottom 8 percent had slower than average income growth. But the bulk of slower income growth occurs between the 80 to 93 percent range associated with the rich countries’ middle and working classes.
Source: Lakner & Milanovic, World Bank, 2013
VOXEU discusses this paper at this website: http://www.voxeu.org/article/global-income-distribution-1988
The student is to write an essay regarding the effect of globalization on the world’s income distribution. The student should determine to what extent is globalization the cause for these changes. If globalization does play a major role, the student should address whether globalization is a net positive or negative. Lastly, the student should address what policies the U.S. government should enact to address concerns regarding globalization.
Format: The essay is to be typed using a standard 11-point font with 1 inch margins. The essay should be approximately three to four pages in length using APA citation style.