Global Inequalities
What are the reasons for global inequalities? Which of these reasons do you think are most important and why? (15 marks)
Global inequality generally means that the total income and wealth is spread out unevenly across the world. Almost half of the work (3 billion people) live on less that $2.50 per day, and the majority of these people love in extremely poor countries. There’s a pattern to show that the least developed countries lie in Africa compared to the rest of the world, however there are multiple reasons for this situation; The Conflict Trap, The Natural Resource Trap, The Landlocked with Bad Neighbours Trap, and The Poor Governance in a Small Country Trap. I will talk about each reason in order according to which i believe are most important.
Poor governance in a small country is one of the main reasons as to why we have many global inequalities around the world. This is because a poor, corrupted government try to discourage Transnational Companies to locate in their country in order to avoid any wealth being taken out of their economy. This prevents peoples chances of having a job and earning a regular income for a stable lifestyle. Economic isolation leads to a country being globally isolated, this is difficult as everyone is reliant on their government to bring income, however this can’t happen because TNC's are discouraged. In addition to this, even if a stable government was to take over, its extremely difficult to regain the economy and takes on average 52 years.
The second most important factor i believe, is the landlocked with bad neighbours trap. This is because 38% of the poorest countries are landlocked, with the majority of them being in Africa. This is because if you are a coastal country, then you have the freedom to trade with anyone around the world, however when you are landlocked, you are only able to trade with your begun outing countries. However, some countries such as Switzerland and Austria have managed to cope
Global inequality generally means that the total income and wealth is spread out unevenly across the world. Almost half of the work (3 billion people) live on less that $2.50 per day, and the majority of these people love in extremely poor countries. There’s a pattern to show that the least developed countries lie in Africa compared to the rest of the world, however there are multiple reasons for this situation; The Conflict Trap, The Natural Resource Trap, The Landlocked with Bad Neighbours Trap, and The Poor Governance in a Small Country Trap. I will talk about each reason in order according to which i believe are most important.
Poor governance in a small country is one of the main reasons as to why we have many global inequalities around the world. This is because a poor, corrupted government try to discourage Transnational Companies to locate in their country in order to avoid any wealth being taken out of their economy. This prevents peoples chances of having a job and earning a regular income for a stable lifestyle. Economic isolation leads to a country being globally isolated, this is difficult as everyone is reliant on their government to bring income, however this can’t happen because TNC's are discouraged. In addition to this, even if a stable government was to take over, its extremely difficult to regain the economy and takes on average 52 years.
The second most important factor i believe, is the landlocked with bad neighbours trap. This is because 38% of the poorest countries are landlocked, with the majority of them being in Africa. This is because if you are a coastal country, then you have the freedom to trade with anyone around the world, however when you are landlocked, you are only able to trade with your begun outing countries. However, some countries such as Switzerland and Austria have managed to cope