The economic globalisation has affected the developed as well as the developing countries in a great manner and bringing an overall development in the planet through various initiatives in every field. Transport has become faster, communication is now very cheaper and many such significant advancements have taken place in the economy of the world because of globalization. It has proved to be very fruitful in decreasing the gap between the developed and the developing countries . The major factor of concern here is that some developing countries are still being deprived from the positive effects of economic globalisation as a whole, and the inequality issues of these countries have not been resolved yet, rather they have worsened in some of the places.
Rise of inequality in developing countries
The basic theory regarding globalisation was something different and was all about a satisfactory fall in the inequality in developing countries. It was predicted that inequality will definitely fall with the entry of developing countries in the global markets. It states that, for their growth, poor countries depend on unskilled labour and the developed countries on skilled labour. With the rise of globalisation, the work and wages for the unskilled labour in developing countries will increase and the skilled ones will remain the same, which will in turn reduce the overall inequality. But the theory has become completely different after the rise of globalisation, and it is actually increasing inequality to a great extent. Here, because of the high emphasis on outsourcing, the rich countries are transferring their work and production process to the poor countries. Due to this, the increase in demand and work for skilled labour is taking place and it has nothing to do with the unskilled labour, which has raised the percentage of inequality in the poor countries.
The winners and losers as a result of globalization
The problem of inequality and proper growth is very pronounced in those developing countries where there is a problem in relocating the workers. This often worsens in case of poor infrastructure and lack of financial services. In developed countries, for example, in China the workers can relocate very easily from rural areas to urban areas any time with great facilities available in case of transportation and infrastructure. On the other hand, in case of poor countries, because of lack of proper facilities and high expenses, workers cannot move easily from one area to another. For example, there is a huge scarcity of electricity in Sub-Saharan Africa along with other problems related to infrastructure and education. These problems become the biggest barriers in the process of growth and equality of these developing countries.
Steps to create equality and ensure growth
The first step that should be taken in this regard is that of ensuring proper infrastructure and transportation facility in the poor countries, so that labours of these countries can easily transport \ from one area to another. Proper training and easy facilities would help them in finding better paying jobs in another sectors. An initiative taken by the high ranking officials of the Asia Pacific Economic Cooperation (APEC) aims at boosting the financial, social and economic situation of the developing countries for their overall growth. For developing countries like Indonesia, this initiative will prove very effective in reducing the financial, social and economic inequality and will particularly work for the upliftment of rural and remote areas. The initiative will further provide equal economic inclusion for all the labours, affordable and useful products and services to individuals and businesses through aiming at financial inclusion and finally empowering the poor and promoting equality through social inclusion.