Globalisation and international institutions

Résumé du document

Globally, 'the number of people who live with a daily income of less than $1, about 55 pence has increased by 100 million, standing at 1300 million'. At the same time, the number of armed conflicts increased in the long term period, especially the intra-state conflicts. But what is poverty? Kuznets defines 2 types of poverty: 'Those who fall below an established poverty line usually defined in money term, such and such dollars per day and those who are unable to command sufficient resources to satisfy basic needs'. And how to be sure that number of conflicts is a pertinent tool to measure political instability? It seems obvious that we have a problem of measurement. We need to define the area concerned. According to Gregory Mankiw, the developing countries indicate the countries which did not reach the standard of living of the western countries. Western countries or developed countries correspond to no more than 20 or 25 countries such as the US, Canada, Japan, South Korea, Western Europe, Australia and New Zealand. Their level of health, education, economy of market, rights and industrialization are considered higher than in other parts of the world.

Extraits

[...] Although some authors managed to prove that small disparities are sources of economic growth (encourage the individual entrepreneurship for example etc.) These disparities are sources of social tensions when they are too strong. Inequalities aggravate the jealousy and class struggle. So can appear the risks of revolt, war, fight for the power and thus political instability. Always according to the World Bank, the disparities do not stop racking themselves between the developed countries and the poorest countries for 30 years. [...]

[...] He privileges in his studies the capability to the well-being and not the attainment of this one. He thinks the poverty in term of incapacity to pursue his well-being. poverty does not stop when the income of a family increases by a dollar" (Abdelmalki quote Sen French course of social economy at Lyon university). He thinks the poverty in term of disparities that's why he uses the Gini coefficient in his studies to measure inequalities thanks to Lorenz curve: the more the coefficient is close to the more the disparities are important (module courses). [...]

[...] But we can expect a decrease of these inequalities in the future. There would be thus a correlation between the economic growth and the reduction of inequalities. Development economics show that it is necessary to have a strong State to allow the economic development and eradicate the poverty (Rostow linear stages of growth model). So the State has to protect its young industries, maintain its exchange rate, to assure the legal security, to encourage the economic liberalism and especially to have a strong public sector to spur investment. [...]

[...] Thus its have few dependency with the rest of the world (dependency school). Direct economic dependence is quite strong but trade dependence, financial dependence, technical dependence and income drains are not very strong (module course). That's why these countries have a bigger political freedom leading to change often, to react more hardly to the outside events. And finally, to have a political instability. The trend of armed conflict is rising worldwide since 1946 but decreasing since 1981 (International Peace Research, Oslo). [...]

[...] He so has to lead an educational policy, an health policy and redistribution policy of the wealth. In fact, the poor men have no means to meet their needs if the State does not help them to be healthy and to have a high educational level allowing having a work and a suitable income. It is the vicious circle of poverty (see graphic next page). Poverty involve political instability, which involve a low level of investment so a low level of education, health and infrastructures, which aggravate the poverty and issues of underdevelopment. [...]