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Basically this article was reviewing the positive relationship between current

globalization, unemployment, inequality and poverty. Unemployment increases level of

inequality and poverty within society. Globalization is the system of interaction among the

countries of the world in order to develop the global economy. Globalization refers to the

integration of economics and societies all over the world. Globalization involves technological,

economic, political, and cultural exchanges made possible largely by advances in

communication, transportation, and infrastructure.

Unemployment is define as everybody who can work, but is without a job (The

Business,2006, p. 6). Even in developed countries, unemployment rates may be high. When

people do not have work, they do not make any money; thus, high unemployment leads to high

levels of poverty. Availability of employment also tends to fluctuate, creating periods of high

joblessness (see Business Cycle). Countries such as Japan, South Korea, Singapore, Switzerland,

and Luxembourg have managed at times to keep unemployment as low as 2 percent.

Unemployment figures during the 1990s in the United States and most of Europe, on the other

hand, ranged from about 5 percent to more than 20 percent. In countries with high populations,

unemployment levels of only a few percentage points mean that millions of working-age people

cannot find work and earn an adequate income. Because unemployment figures indicate only the

number of people eligible to work who have no job but are seeking employment, such figures are

not necessarily an accurate indicator of the number of people living in poverty. Other people may

not be able to find enough work or may earn wages too low to support themselves. The shortfalls

have been manifested in three important areas which are increased inequality of wages and

income, de-industrialization and mass unemployment.


Social inequality refers to disparities in the distribution of material wealth in a society. It

can refer to inequality among individuals, or among groups. Many experts agree that the legacy

of colonialism accounts for much of the unequal distribution of resources in the world economy.

In many developing countries, the problems of poverty are massive and pervasive. In recent

decades most of these countries have tried to develop their economies with industry and

technology with varying levels of success. Some nations have become fairly wealthy, including

the Republic of Indonesia, Malaysia, Singapore, South Korea, and Thailand. This will leads to

the rich become richer and poor getting poorer. As based on the income discrepancies between a

5th of the worlds population who live in the richest countries and a fifth who live in the poorest

countries was 30:1 in 1960, by 1997 it had been grown to 74:1. For example Bill Gates had boost

of $100 billion (almost the wealth of 40 million poor individuals around the world) as at July

1999. The consequences of poverty were increasing early mortality,diseases and malnutrition,

prostitution, child labor, displacement and force migration, the violence of social breakdown,

state social control and fractional war, acute risk and uncertainty, environmental degradation and

vulnerability, as well as a loss of existential material security.

Poverty rate globally has increased owing to the global inequality and poverty in the

poorest developing countries over the past decades can be attributed to globalization. Around the

world, in rich or poor nations, poverty has always been present. In most nations today, inequality

—the gap between the rich and the poor—is quite high and often widening. The causes are

numerous, including a lack of individual responsibility, bad government policy, exploitation by

people and businesses with power and influence, or some combination of these and other factors.

Many feel that high levels of inequality will affect social cohesion and lead to problems such as

increasing crime and violence. Inequality is often a measure of relative poverty. Absolute
poverty, however, is also a concern. World Bank figures for world poverty reveals a higher

number of people live in poverty than previously thought. For example, the new poverty line is

defined as living on the equivalent of $1.25 a day. With that measure based on latest data

available (2005), 1.4 billion people live on or below that line. Furthermore, almost half the world

—over three billion people—live on less than $2.50 a day and at least 80% of humanity lives on

less than $10 a day