Progression Towards an Equal Globalized World

802 Words4 Pages
Progression towards an equal globalized world Globalization has made the world more interconnected, contributing to many economic benefits to many countries worldwide. While the economic benefits of globalization are evident, the constant widening of the income gap between the wealthy and the poor both nationally and internationally has become a major concern for all. As globalization allows the rapid expansion of markets, some people are inevitably left behind and not given the opportunity to enjoy the financial benefits in the global market. One key reason is because despite foreign aid into developing countries, they are unable to properly progress due to incapable or corrupt government officials. Another reason for the disparity is that some economies are unable to provide substantial skills to participate actively in the global economy. Such countries provide obsolete and low valued talents such as weaving and farming, hence leaving them with limited opportunities for abundant economic growth. As a result, this has led to a misallocation of wealth as the rich constantly improve and develop themselves to enjoy the benefits of globalization, often capitalizing on the low skills and poorly paid workers. As such, in 2003, the richest fifth of the world’s population received 85% of the world’s income, while the poorest fifth received only 1.4% of the global income (Infoplease, 2005). One possible solution to ease inequality in the globalized world is through progressive taxation. Progressive taxation policies set by the government taxes the higher income brackets with increased rates and the lower income brackets with reduced rates so as to help alleviate these income disparities and increase equality. For example, in Singapore, citizens earning less than S$20,000 annually are not liable to pay income tax. The next tax bracket, consisting of citizens
Open Document