Question

Take the current country you are living in and compare with another country of your choice and compare the following aspects: Poverty Income Inequality Furthermore, explain how globalization has either helped increase or decrease the poverty and inequality in each country.

Answer 1

Two country taken up for comparison is India and the USA. The India has higher level of poverty and income inequality in comparison to that of the USA. Poverty level in India is 22% and in the USA it is 13.5%. Though the criteria set to decide people under poverty are very different. In India, a person earning $1.25 on PPP will be considered below the poverty, but in the USA, it is over $22000 for a family of four. So, the parameters are very different. The income inequality is very high in India, in comparison to the USA.
Globalization is the phenomenon that has started by the developed nations, led by the USA. It has increased the per capital income in the USA and poverty level has come down. Globalization has positively affected India and per capita income has progressively increased. It is over 7% per annum in India that has put downward pressure upon the poverty level and it has come down. On a similar note, the poverty level has also come down in the USA, though income inequality has increased in the USA. Though the income level has increased in India, but income inequality has also grown, but relatively less in comparison to the USA.