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#Negative impacts of globalization on poverty software#
The close association of globalisation and information technology, particularly the software development have been assisting the governments in developing countries to formulate new strategies with a view to reducing poverty. In the recent years with the advent of information age globalisation has been sped up. In these circumstances, development as well as humanitarian assistance is also required for which the country has to, and should, depend on the non governmental organisations and the media. On the contrary, they may also be found associated with the policies that inhibit or hinder economic development and growth. A further 288 million live in countries in which the World Bank is active but which it assesses as having a very poor policy environment.įurther, government to government aid is conventional and conservative manner may not prove to be effective. Almost 160 million people live in countries in which the policy environment is assessed as too weak for World Bank management. There is an important role for technical assistance to improve the effectiveness of government and the efficiency of markets in order to achieve this.ĭevelopment assistance can contribute to poverty reduction in countries pursuing sound policies. However, support to focus their own resources on the reforms needed to reduce poverty and inequality has to be given due attention. They do not, therefore, need the large scale concessional flows required by low income countries.
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Many of these countries have considerable resources of their own and access to private sector investment. In the middle income countries, where there are a large number of people still living below the poverty line, it is the development assistance that can jettison them out of the problem. The Organisation of Economic Cooperation and Development (OECD) has targeted to provide assistance to countries in the African and Asian regions for multilateral development with a view to reducing poverty. On the other hand, the Middle East and North Africa receive $950. According to estimates, countries in South Asia receive only $10 as development assistance per person per year. Over a decade, striking improvement has been observed in targeting of development assistance on poor countries with broadly acceptable policies. The development agencies have noticed the link between aid effectiveness, poverty and policy environment. It is this situation when global development assistance is required.
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Nor they have been able to considerably reduce poverty as targeted. Factually, countries in South Asia and Sub Saharan Africa have recorded lower domestic savings leading to lesser investment due to which these countries could not get maximum advantage of globalisation in terms of raising the living standards of their subjects. Īnswer – In recent years, it has been found that in the developing countries domestic savings are the main source of finance for investment. Explain the impact of Globalisation on Poverty Reduction.