The extent of globalisation

U

usta in Portland

Daily Driver
This column from the Economist concerns some work done on quantifying the true extent of globalisation as opposed to our perceptions. Perhaps needless to say there is a pretty conspicuous disconnect between what we think we see and what is actually happening. The numbers on foreign direct investment (FDI) really jumped out at me.

http://www.economist.com/node/18584204
 
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Well written book review...

I think people tend to view globalisation (or globalization) as a good or bad thing based entirely on what the perceived effect is to them personally. I do that too, but then I realize that for the poor in other countries, as well as our own, to have a bit more, those that have more than they need must be willing to give up some of it. My own perception based on the growing disparity of rich and poor, globaly speaking, is that it just seems that as we (the middle class) do give up a bit of or "wealth", the poor who really need it aren't getting it -instead it is going to that small percentage at the top.

Good article though, makes ya think.

Tommy
 
In my experience, at the company I work for, it is the middle class locally who are excised and the poor over the border are the ones who are lifted up but not nearly to middle class levels. Nor will they ever be.

This is a win win for those at the top both now and in the future with nothing for those sacrificed and little more for those who are being lifted up. Eventually there will be another low cost country. Africa is looking like the next human labor pool...
 
There are a couple of measures...

of income inequality that are commonly referred to. One is the 20-20 ratio which compares the income of the top 20% of households with the bottom 20%. The another is the Gini Index which is a different way of expressing the 20-20 model. In both indices it is clear that Latin America is showing some distressingly high ratios, in Colimbia the top 20% make 25 times as much as the bottom 20% for instance. This ratio is 8 in China for comparison. Brazil, Mexico and Argentina are in the 12-20 ratio area.

I don't have a complete list handy, but will try to find some more comparisons.
 
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