Inequality Breeds Resistance to Globalization. YaleGlobal. Pranab Bardhan. November 27, 2012.
Many critics point to globalization, its swirling influences over worldwide connections through trade, technology and communications, as a culprit behind growing inequality. Yet the author points out that the connections deliver both opportunities and challenges. Multiple forces contribute to entrenched economic inequality in so many countries, that limits opportunity, and Bardhan contends that countries can control many of these with development of education, infrastructure and labor-market conditions. Economic rent is the amount required by a property or business owner to proceed with a specific purpose; some sectors of the economy benefit from new development and others seek to freeze development to deter competitors. Closing markets doesn’t curtail special interests within a nation who yearn for more. Technological development, composition of exports, government subsidies and regulation, as well as skewed pricing for use of natural resources also contribute to determining globalization’s winners and losers. [Note: contains copyrighted material].
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