Summary: “The social dimension of globalization: A review of the literature” – 2004
Name: Brian Geurts Group: A Student number: 1049771 Date: 09/18/2013
Summary: “The social dimension of globalization: A review of the literature” – 2004
This literature review, written by Bernhard Gunter and Rolph van der Hoeven, considers the impact of economic globalization on wages and taxes, poverty, inequality, insecurity, child labour, gender and migration. The intention of the survey is to summarize recent significant articles and publications on the various social dimensions and to suggest some key policy issues to make globalization a fairer and more sustainable process for all.
The recent globalization process caused some facts. World trade had been tripled and the GDP increased by two and a half, both in the past two decades and primarily caused by the relaxation of (Non-)tariff barriers. Either the FDI has grown 20 times than its level two decades ago. The marginalization of low-income countries in either share in world trade, share in world GDP and share in foreign direct investment (FDI) implies an increase in inequality. The size and evolution of portfolio investment (equity and bonds) is alarming, because the high-income countries have a share about 90% two decades ago and it maintains. Companies still assemble their products in one country, but today the input could come from all countries. Nowadays, all products are produced in the countries that are most profitable for the production of that specific (intermediate) product. There are also concerns about the power of multinational corporations as they account for two-thirds of world trade.
The relocation of manufacturing production to developing countries, caused structural unemployment in the industrialized countries and considerable reductions in wages and jobs in developing countries due to the increased competition to set up new production plants. Europe’s wage cuts and its maintenance of social protection have led to high unemployment but no significant changes in income
Summary: “The social dimension of globalization: A review of the literature” – 2004
This literature review, written by Bernhard Gunter and Rolph van der Hoeven, considers the impact of economic globalization on wages and taxes, poverty, inequality, insecurity, child labour, gender and migration. The intention of the survey is to summarize recent significant articles and publications on the various social dimensions and to suggest some key policy issues to make globalization a fairer and more sustainable process for all.
The recent globalization process caused some facts. World trade had been tripled and the GDP increased by two and a half, both in the past two decades and primarily caused by the relaxation of (Non-)tariff barriers. Either the FDI has grown 20 times than its level two decades ago. The marginalization of low-income countries in either share in world trade, share in world GDP and share in foreign direct investment (FDI) implies an increase in inequality. The size and evolution of portfolio investment (equity and bonds) is alarming, because the high-income countries have a share about 90% two decades ago and it maintains. Companies still assemble their products in one country, but today the input could come from all countries. Nowadays, all products are produced in the countries that are most profitable for the production of that specific (intermediate) product. There are also concerns about the power of multinational corporations as they account for two-thirds of world trade.
The relocation of manufacturing production to developing countries, caused structural unemployment in the industrialized countries and considerable reductions in wages and jobs in developing countries due to the increased competition to set up new production plants. Europe’s wage cuts and its maintenance of social protection have led to high unemployment but no significant changes in income