Question

Explain how globalization process can alleviate poverty form the stand point of Aid?

Answer 1

Globalization's effect on eradicating poverty has become progressively the focus of government and global organisations ' attention. The financial arguments for globalization emphasize the beneficial interactions between rising global trade and investment flows and quicker financial development, greater living standards, accelerated innovation, dissemination of technology and management abilities, and fresh financial possibilities.

The primary responsibility for harnessing the potential advantages of globalization for the rural poor and countering possible adverse impacts has been provided to developing nations. They are encouraged to take suitable structural and social steps that are crucial for economic growth and poverty alleviation to support macroeconomic stability. High-income countries are encouraged to promote these projects through enhanced assistance, debt relief, exchanges of knowledge on policy making and good governance, liberalized market access for low-income countries for products, and enhanced resources to combat communicable diseases.

However, many low-income countries are already facing enormous and often contradictory difficulties in attaining poverty-alleviation objectives, e.g. educational implementation for all programs with decreased government spending, or ensuring adequate income-generating and job opportunities for rural poor people without interference in agricultural production prices or investment allocation policies.

Developing countries need concrete guidance on suitable social, market and political tools and distribution mechanisms (meso-economic measures) to bridge the micro-world of the poor and the macro-world of domestic economies and to sequence tools appropriately.

Economic development is the primary channel that can influence poverty through globalization. What scientists have discovered is that they tend to develop quicker when nations open up to trade, and living standards tend to rise. The normal argument is that the advantages of this greater development are down to the poor. It has been a bit more tricky, particularly with aggregate data, to identify how precisely the poor have benefited. One challenge is that many other variables, such as technology and macroeconomic circumstances, are changing when trade or globalization occurs. Another difficulty is that there are often no high-quality information on the well-being of the poor.