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PROFILE

M. AHMED IQBAL BALOCH

COLUMN FOR THE RECORD
SOCIETY 1- BAN ON INDIAN CHANNELS
2-
THE HAIRDRESSER: AN ENTREPRENEUR AND AN INSTITUTION
3- GLOBAL INEQUALITY

 

GLOBAL INEQUALITY


Inequality seems risen with a moderate pace. High rise in some countries and down in others


By ASHFAQ AHMED
mhhworld_lord@yahoo.com

Aug 11 - 17, 2003 
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Taking the very essence of developing scenario around the globe in the wake of WTO by January 1, 2005 and related deviations feared. It appears to be a long way to following a track of global inequality. Countries, organizations and even individuals have witnessed gripping impact of inequality which again posing a threat.In the past, concern shown by the UN economists in the Human Development Report that "Inequality has worsen within countries, across countries and rising among the people as well."

Inequality seems risen with a moderate pace. High rise in some countries and down in others. Globalization does not take the one sided course. However, there comes least evidence that within country inequality not gone up during last few decades.It is agreeing that across the countries incomes in terms of purchasing power seen least unequal as cost of living in poor countries is lower. Market exchange rates play least role. Anyhow trend is not downward. It remains the fact that for the past few decades countries have grown richer manifold (mostly economies of scales) and most of poorest not only stayed poor but further burdened.

Global dispersion of income will widen if Africa, South Asia and South East Asian continue to be stagnate with the speedily grown economy of China.Relieving the poverty or narrowing the gap between rich and poor results encouraging however, poverty worldwide has fallen insignificantly. Country variance weighted by population is always better than the un-weighted one, but still it ignores inequality within the country. However, it becomes obvious in the wake of applying any measure that rising global inequality is hardly be seen.

Either convergence or concentration of income among, people, corporations and countries, inequality takes varied moves as across the country rapid rise and within the country moderate, largely depending on quantum of trade. Even with the start and early years of its progress more rise of global inequality may be witnessed across the countries than within or among the people.

America and countries located in Europe will be least exploited to the rise of inequality given the present scenario as major trade would mature within and across European countries. Particularly countries in South Asia and South East Asia are to face continuous dilemma till such time avail more to offer and bear least intake.Apprehensions to this are Competitiveness, Bilateral Agreements, Regional Trade, Exploitation of economy as strategic source, Attaining of market access by sticking to influence.

Countries deviating international regulations and making internal sanctions will give rise and countries with least developed infrastructure are subject to see rise of inequality. Protectionist measures by big economies like US and Japan to deal with the challenges posed by emerging economies, and at the same time developing scenario is encouraging China, India and some other East Asian countries for the formation of an economic bloc. It also propels market economy whereby setting of prices, subsidies standards are likely to be under cover.

 

 

Avoiding and closing of such apprehensions/moves would minimize possible tension across the regions. Countries competing with economies of scales, need to be either making knowledge or technology based output within and across country. Mature economies as Brazil, India and China, for instance would be comparatively at advantage for attracting larger trade and under developed economies in Eastern and Central Asia can best be offsetting inequality syndrome by strategically opening up of their economies, specifically agriculture and industrial produce linking export.

China being the largest exporter in the region beside India certainly places lasting intricacy to the regional economies. Even now China getting larger share of direct foreign investment which developing economies enjoyed in the past. Opening up of economy in developing countries is not as such premediated making the economic activities less viable. Availing the specific locations as strategic trading hubs and attracting monetary resources may do good for reducing the gap of inequality.

For the developing countries in East Asia, Central Asia and South East Asia, openings to exploration, tourism, energy, agriculture sectors are much volatile for the sustaining with giant economies and getting time space for future preparation. Inducing the local ones and letting participate financial institutions of foreign origin for specific purposes play vital role when foreign direct investment is feared moving away.

Location-wise strategic positions of the countries (depending) either land lock or otherwise may well let neutralize the growing inequality by taking some far-reaching and un-compromised policy measures relating to setting of priorities developing/permitting new land and sea routes, leaving other regional irritants behind and that must benefit them with better cost effectiveness.

Within country perspective inequality persists in varying proportions till the time its manpower happens to be productive as a whole but more technically. In such cases value addition produce can largely satisfy and accommodate the needs, also help bar depletion of resources, depending on updation of knowledge and modernization of industrial processes.