~Do Globalization Cause Poverty in a Country?

One major problem that face by many country is poverty among their citizens. Malaysia also not excluded. Normally we think that it is cause by their education background or their family background. But do you ever think that all of that is cause by globalization that occur around us. We cannot accuse them not try to change their life. Of course they have done all their best but activity surrounding effect them a lot. When financial crises occur, it effect the poor so much.

From the book that I have choose, "Globalization and Poverty", I can classify two way that globalization effect poverty. First, the international trade in goods and the second one is the international movements in capital. I will discuss it further time by time.

Based on the first cause, we can see that the poor people normally involve in activities like farming, searching for forest resources and selling goods in small unit. They usually plant something that easy to grow and do not need big budget to start with such as tapioca and vegetables. They will sell it directly or sell it to businessman at market. If they sell it, they will sell it with lower price and their stall not situated strategically. So this will effect their business. If they sell it to the businessman at the market, they do not get much profit. The middle people will suppress them. And of course the goods will not go to commercialize. This much more effect them. We never wonder either this goods will be accepted all around the world or not. To commercialize something, it need much money to be spent.


The second cause of this problem to happen is the international movement in capital. We can say that our country is following the economic movement. But they do not realise that this burden the unfortunate. Their voices normally will be neglected since the aim of the country is to be in the same level with other developing country. The increase in living standard effect them a lot. They have to control their expenditure to prolong living.


But they still ways to prevent all of this from happening. One of the best way is to export growth and incoming foreign investment in a country. When there are many foreign invest in a country, the country will have money that indirectly will help the poor. For an example, when a foreign builds a factory at a country, the people around them can work there. That will confirm them have some money to earn their living and reduce the poverty statistic.