Poverty and Global inequality


Poverty has long remained one of the main issues confronting the world. According to an estimate, around 1.89 billion people are living in absolute poverty i.e., about 36 percent of the total population of the world.  On the other hand, in recent years, a number of evaluations claim that the global poverty level has reduced to a certain level. For stance, the World Bank argues that poverty and income inequality have fallen in the last few decades. In 1980, 1.4 billion people were living in absolute poverty, but by 1998 this figure had come down to 1.2 billion. Other statistics show absolute poverty has fallen by 400million that is from 28% percent to 24% percent. The proponents of the Neo-liberal policies argue that the above-mentioned figures and their outcomes clearly show that the global economy offers opportunities to developing states that can be garnered through the adoption of correct neo-liberal policies. And the fundamental reason behind this decline in poverty is the adoption of market-friendly policies, economic liberalization, and conforming to global trade rules. But the myth is, despite these optimistic upbeats, the inequality between poor and rich and between developed and developing countries are increasing. One can assess the severity of the situation by the fact that the world’s net wealth belongs to the top 1 percent. Further, the top 10 percent of the population holds 85 percent of global wealth, while the bottom 90 percent holds the remaining 15 percent. Eliminating poverty and global inequality has long remained one of the main issues worldwide. There are both some structural and some institutional impediments due to which despite several attempts, it still prevails globally. Despite several high claims made by the neo-liberals the gap between poor and rich and the developing and developed world is widening.  The current global economic order to some extent is exclusive. It privileges only some old core countries, while the rest of the world is still lagging. The real change in the current international economic order could only be brought through transforming and making it more inclusive. There is an urgency to transform the society from verticalization and feudalization to Horizontalization and de-feudalization. There is a dire need for the establishment of a new economic order that could benefit both the developing as well as the developed world.

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