Global inequality generally means that the total income and wealth is spread out unevenly across the world. Almost half of the work (3 billion people) live on less that $2.50 per day, and the majority of these people love in extremely poor countries. There’s a pattern to show that the least developed countries lie in Africa compared to the rest of the world, however there are multiple reasons for this situation; The Conflict Trap, The Natural Resource Trap, The Landlocked with Bad Neighbours Trap, and The Poor Governance in a Small Country Trap. I will talk about each reason in order according to which i believe are most important.
Poor governance in a small country is one of the main reasons as to why we have many global inequalities around the world. This is because a poor, corrupted government try to discourage Transnational Companies to locate in their country in order to avoid any wealth being taken out of their economy. This prevents peoples chances of having a job and earning a regular income for a stable lifestyle. Economic isolation leads to a country being globally isolated, this is difficult as everyone is reliant on their government to bring income, however this can’t happen because TNC’s are discouraged. In addition to this, even if a stable government was to take over, its extremely difficult to regain the economy and takes on average 52 years.
The second most important factor i believe, is the landlocked with bad neighbours trap. This is because 38% of the poorest countries are landlocked, with the majority of them being in Africa. This is because if you are a coastal country, then you have the freedom to trade with anyone around the world, however when you are landlocked, you are only able to trade with your begun outing countries. However, some countries such as Switzerland and Austria have managed to cope with the issue, implying that a being landlocked is just a potential contributing factor to being economically unequal. A solution for this is to encourage remittances – so encourage some people to emigrate to earn money then send it back home to family for it then to be spent in their economy. This can slowly help strengthen the economy.
I believe the next most important factor would be the conflict trap. Because feel oped nations have had their civil wars in the past however they have managed to release themselves of the unfortunate cycle, however some of the poorest nations generally get trapped in the violent cycle, and any money generated is instantly spent on weaponry. These poorest countries have a substantial amount of young men, who eventually end up turning to crime and recruit into rebel groups because they have nothing else to do, so they have nothing to lose. There is a huge correlation between education and crime, because these men are less educated, the crime is higher. There is also a further correlation between civil unrest and the wealth of a country, showing that the less wealth a country has, the more civil unrest there is.
Finally, the last contributing factor to global inequalities is the raw materials trap. This is when a country only has one type of raw material and are extremely reliant on this source to provide their country’s wealth, so they lack diversity. This is a very risky method because the resources are generally non-renewable and the reliance is so high, meaning that if it fails or runs out then they will be in a poor, failing economic state. They will lose all income and won’t be able to afford any imports from other countries, so they will not be able to provide necessities for their country.
In conclusion to this essay, i believe that the poor governance in a small country is the main contributing factor to global inequalities, because i believe that every country has the potential to regain the strength in their economy, but with a corrupt government that generally keep money for themselves.