Global Inequality

Essay by taubej05College, UndergraduateA-, February 2006

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As globalization and the world economy continues to become more and more global the poorest countries in the world are being abused and left in the dust. The global inequality in today's world economy rivals that of the gap between the rich and the poor in the United States, every day the rich are getting richer and the poor are getting poorer.

There are many factors of globalization that make it disadvantageous for underdeveloped countries. These challenges almost always revolve around the fact that well developed countries poach the natural resources of underdeveloped countries and then use them to create products which are later sold again for a greater profit. This general principle would be known as mercantilism which has been practiced by most European nations and some would argue that the United States has done it and to some degree is doing it now in Iraq in the form of oil.

Another challenge is that these third world nations rely upon the global nations for support and aid and without it their people would suffer which does not allow them to free themselves from this need for global aid and the must continue to be a part of the global economy. Finally, these underdeveloped nations can not combine to fight back against the global developed countries because they are not self sufficient and they do not have the infrastructure to compete in specialization of trade. Even with attempted coalitions of third world nations, free of the corruption of first world nations, the third world nations are still unable and unprepared to fight against the repression of the developed nations because they do not have the instruments to do so. There are many challenges that the underdeveloped countries face that they can't handle with the lack of economic instruments...