The upside of globalization
These days, as the Greek market is flooded with imported (mostly Chinese) toys, one can hear local tradesmen grumbling about the ills of globalization. Sure, the lifting of tariffs and the internationalization of markets has its downsides that also impact on Greece’s businesses or even entire sectors. But who can deny that the inflow of cheap foreign products has raised the living standards of low-income groups? Globalization is a progressive economic and social process that has enabled more people to improve their living standards and access the benefits of new technology. The latest World Bank report reflects these major changes. According to the report, America’s waning growth rate and the stagnation in other parts of the world will be offset by the developing nations in the Third World as globalization has expanded their possibilities. Developing countries, the study shows, are turning into the engine of the global economy as they are growing at twice the rate of developed states (over 6 percent). Thanks to globalization, the global economy could expand from $35 trillion in 2005 to $72 trillion in 2030. The number of people living under the poverty line ($1 per day) will drop from 1.1 billion today to 550 million. Also by 2030, 1.2 billion people in the developing world – that is 15 percent of the global population – will belong to the middle class, from 400 million today. These people will have purchasing power of 4,000-17,000 dollars per capita, access to most consumer goods, and international education standards – hence also a stronger global role. Globalization does not mean poverty and inequality. Without globalization and open markets, China, India and other Asian countries would never have achieved their current level of growth. Greece needs a blueprint for growth that will allow it to participate in the creation of this unprecedented wealth.
