What is globalization?

Economic "globalization" is a historical process, the

result of human innovation and technological
progress. It refers to the growing integration of
economies around the world, especially through
trade and financial flows. In some cases this term
refers to the movement of people (labor) and the
transfer of knowledge (technology) across
international borders.

Unprecedented growth and greater inequality:

Income trends in the 20th century

Globalization is not a recent phenomenon. Some

analysts maintain that the world economy was as
globalized 100 years ago as it is today. However,
never before have trade and financial services been
so developed and integrated. The most striking
aspect of this process is the integration of financial
markets, made possible by modern electronic
communications.
To what extent are developing countries
integrated?

Since the 1970s, in some countries - especially

Asian ones - per capita income is rapidly
approaching the levels achieved in industrial
countries. More developing countries have only
moved forward slowly or lost ground. Specifically,
in Africa per capita income fell compared to
industrial countries, and in some countries it fell in
absolute terms.

Are poverty and inequality increasing due to

globalization?

In reality, the gap may have narrowed. Surprisingly,

this study infers that there is a contrast between
what could be called the "income gap" and the "gap
between human development indicators." Today,
the income level (adjusted for inflation) of poor
countries is still much lower than that of large
countries in 1870, and the income gap has widened.
However, judging by human development
indicators, the situation in poor countries today is
much better than what existed in 1870 in large
countries. This is largely because medical advances
and improved living conditions have greatly
increased life expectancy.

However, although the gap between human

development indicators has narrowed in the long
term, too many people are being left behind. Life
expectancy may have increased, but for many the
quality of life has not improved, and many are still
mired in destitution. Added to this is the spread of
AIDS throughout Africa in the last decade, which is
reducing life expectancy in many countries.