Facilitated to new heights by the information and telecommunications revolution

from 1985, alongside the rapid advancement of transportation and science,
globalisation is now undeniably a major characteristic of the modern world.
Economic globalisation, the driving force behind this phenomenon, is defined by
Joshi (2009) as the “integration and interdependence of national, regional, and
local economies across the world through an intensification of cross-border
movement of goods, services, technologies and capital”. The greater
interdependence of countries and the eradication of many barriers to trade have
brought about the foundation for what Ohmae (1999) referred to as ‘the
borderless world’.
Stemming in recent times from Ronald Reagan’s free market ‘Reaganomics’
policies in the United States of America, followed closely by Thatcherism in the
United Kingdom, Globalisation has become increasingly popular throughout the
world owing to the changing economic paradigm. Countries have deviated from
the Keynesian ideology of steering economies, to a neoliberal approach which
believes in the power of the free market, and the stripping down of barriers
concerned with the movement of goods, services and capital. Neoliberalism
quickly became almost universally accepted and replaced communism following
the collapse of the Berlin Wall, and the downfall of the USSR in 1989 and 1991
respectively. Significant free trade agreements which stand to this day highlight
the acceptance of neoliberalism, for example, the Single European Market which
established four freedoms for the free movement of goods, services, capital and
people, hence establishing the European Union as a single territory “without
internal frontiers” (Grin, 2003, p.8). Additionally, The North American Free Trade
Agreement, signed in 1994, established The United States of America, Canada
and Mexico as a trilateral trade bloc in North America with the world’s largest
free trade agreement. (Johnson and Turner, 2010; Orme, 1996)
It would be inappropriate to suggest that globalisation is either perfect or
imperfect. Naturally globalisation has both positives and negatives on an
individual, local, national, international and global scale; often providing
advantages at one level which have negative repercussions at another meaning
that globalisation has to be assessed from a utilitarian perspective on what
provides the greatest good for the greatest number of people. Anti-globalisation
campaigners argue that it “leads to exploitation of the world's poor, workers, and
the environment” (BBC, 2001), however as a result of a thorough examination
via empirical evidence of the arguments from both proponents of globalisation,
and anti-globalisation campaigners of the effects of globalisation, it can be seen
that the positives associated with globalisation outweigh the negatives, with
Wade (2004) arguing that globalisation generates more ‘mutual benefit’ than
‘conflicting interests’.
Main Body
Free Trade Increases Poverty and Inequality in the Third World
Throughout history, nations which have managed to reduced poverty to a large
scale, are for the most part those who have gone through rapid economic growth
on the back of increasing their openness to international trade. Dollar and Kraay
(2002) state that “the best evidence available shows that the current wave of
globalisation, has actually promoted economic equality and reduced poverty”.
Countries such as China, India, and Bangladesh who were once amongst the

Chinese steel output rose from 32 million tonnes in 1980 to 418 million tonnes in 2006. . the rate of which fell from 56% to 15%. the development of an economy provides no change in equality levels. The Chinese Government reduced numerous barriers to trade. poverty has virtually been eradicated in the urban areas of China. with some employee productivity in this industry matching or surpassing that of their Western counterparts. ships. The period of neoliberal globalisation since the 1980s has in fact resulted in the greatest reduction in human poverty ever. The exceptional growth achieved by China is highlighted in figure.227 billion in 2012. Economists point to the removal of barriers to trade and increased competition as the reason for these vast increases. textiles and concrete. an increase of 1. economists point to the Kuznets curve (figure ?) which demonstrates how as an economy develops.1 as a percentage of world trade during the period 1980-2005. market forces first increase and then decrease economic inequality. Even greater increases were experienced in the textile industry with exports in this industry rising from 4.6 to 24. (Source) In this period. Similarly production in China’s automobile industry increased by 6. and has been vastly reduced in rural regions. 2008). Purdy (2013) asserts that “more than 600 million people have escaped poverty”.world’s poorest countries. In addressing statistics which show that inequality has risen both in post-reform China and across the world in the same period. Additionally to the vast increases in GDP. living standards have increased nationally. have seen reductions in poverty due to their economic expansion.206% and equalling one-third of the total global production. whilst increasing per capita income and hence. to the world’s largest producer of steel. such as tariffs. ? which shows the colossal increase in Gross Domestic Product from approximately $150 billion in 1978 to $8.35 million. The reforms undertaken saw China rise from essentially an industrial backwater in 1978. Through the reform period. of the number of people in the developing world living on $1.25 or less per day in 2008. The economic reforms of China are used to give substance to the declaration that globalisation greatly increases wealth for poor countries. reducing or eradicating poverty. Statistics published by the World Bank’s Development Research Group show a reduction of 52% since 1981. (Brandt and Rawski.588% in the period 1975-2008 from 139.800 to 9. showing that in the longrun.

in a free market. no such loss occurs. Academics see protectionism as a . As the ideology behind globalisation is underpinned by the eradication of trade barriers leading to free trade.Additionally. Protectionist policies result in deadweight loss. the advantages associated with free trade rather than protectionism go much further. dissimilarly. is that there currently seems to be no viable alternative. due to the jobs generated by allowing nations to specialise in the areas in which they have a comparative advantage over other countries. with many mainstream economists advocating that free trade is superior to protectionism. and the country’s economic welfare in general. 1993. Furthermore. quotas.1994. Friedman and Friedman 1980) Proponents of globalisation point to Ricardo’s theory of Comparative Advantage. (Krugman. https://hbr. the rise in wealth of some people in China and across the world shouldn’t overshadow the real and significant reduction in poverty and increase in living standards. the contrasting philosophy to this is that of protectionism which involves restricting trade between countries through policies such as import tariffs.org/2013/11/chinas-economy-in-six-charts/ Protectionism Finally. Through the growing interdependence of nations reliant on mutual cooperation. and many additional regulations imposed by governments. which are used to ensure that products produced domestically have protection from imported goods. which displays how gains stemming from free trade overshadow losses. which provides benefit to nobody. a strong argument for the proponents of globalisation. the probability of conflict between them becomes improbable to the point of impossibility. The consensus among economists is that protectionist policies tend to inflict largely negative effects on both the economic growth of a country.

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