Sunday, 22 September 2013

Reader Response to "Assessing Globalization: Benefits and drawbacks of trade and integration"

In the article "Assessing Globalization: Benefits and drawbacks of trade and integration", Kohut and Wike (2008) discuss about the positive and negative impacts of globalization and state that the perception of people towards globalization is dependent on the impact that it creates on the economy, society and environment.

One key concern about the negative impact of globalization which is highlighted in the article is the increasing inequality between the rich and poor. Many people are worried that the disadvantaged groups in the society will not benefit from the economic progress so they supported the view that the state should be the one responsible for alleviating the plight of the poor. 

In my opinion, although I agree that it is the duty of the state to look after the welfare of the poor, the government should be careful when implementing welfare policies to help the poor in order to prevent the poor from becoming too dependent on the government for support. Being too reliant on the government for assistance will only result in the poor losing the chance to break free from the poverty cycle as they will lose the motivation to work hard and become self-sufficient. For example, in welfare states like the United Kingdom and United States, unemployment benefits were given to the poor to safeguard their welfare. This might lead to the poor having the mindset of remaining poor and unemployed so that they can continue to be eligible for these schemes. According to a survey (The Salvation Army, 2012), twenty-seven percent of the Americans believe that people are poor because they are lazy and not because of the economic circumstances while forty-three percent of the people believe that people living in poverty can always find a job if they really want to. Hence, the government should be cautious and evaluate on the possible drawbacks before embarking on the various welfare schemes to ensure that the poor will truly benefit from the policies and successfully break free from the poverty cycle. In order to prevent the poor from merely depending on the state for help, the government can create more subsidized programs which will increase the skills and knowledge of the lower skilled locals or giving low interest loans to people interested in starting their own businesses so as to encourage the poor to be self-reliant and strive for their best to earn a higher income. These policies will have better long term effects than giving direct financial subsides as they will teach the disadvantaged groups the essential skills and knowledge to stay relevant in the society and even catch up with the rest of the population to enjoy the benefits of economic growth.

In conclusion, while is it undeniable that the government has the responsibility to take care of the needs of the less fortunate citizens, it is vital that the assistance provided by the state does not come at the expanse of the poor losing the motivation to become financially independent. 

References:
Kohut, A., & Wike, R. (2008). Assessing globalization: Benefits and drawbacks of trade and integration. Harvard International Review, 30(1), 70. Retrieved from: http://www.pewglobal.org/2008/06/24/assessing-globalization/

The Salvation Army. (2012). Perceptions on Poverty: 2012 National Poverty Report- Key Findings and Messages. Retrieved from: http://www.use.salvationarmy.org/use/www_use_Empire_RochesterNY.nsf/vw-dynamic-index/6E02F0261CEC54C385257A5D005DAD9B?Opendocument

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