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Globalization and Globalization Debates

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 Globalization and Globalization Debates
By
Khemraj Subedi(Associate Professor)
Tikapur Multiple Campus
Far Western University
1.1 Introduction to Globalization
Globalization is the growing integration of economies and societies around the world (Collier and
Dollar, 2001). The term “globalization” first appeared in a dictionary of (American) English in
1951, and its roots can be traced back to the terms “global” (which took on the meaning of ‘world
scale’ in the late 19th century) and “globalize” (which appeared in the 1940s). Globalization came
to prominence in popular discourse in the late 1990s and early 2000s, concurrent with a surge in
publications on the topic (Ghemawat, 2007).

Globalization is the process of interaction and integration among people, companies, and
governments worldwide. Globalization has accelerated since the 18th century due to advances in
transportation and communications technology. This increase in global interactions has caused a
growth in international trade and the exchange of ideas, beliefs, and culture. Globalization is
primarily an economic process of interaction and integration that is associated with social and
cultural aspects. However, disputes and international diplomacy are also large parts of the history
of globalization, and of modern globalization.

Economically, globalization involves goods, service, data, technology, and the economic resources
of capital. The expansion of global markets liberalizes the economic activities of the exchange of
goods and funds. Removal of cross-border trade barriers has made the formation of global markets
more feasible. Advances in transportation, like the steam locomotive, steamship, jet engine, and
container ships, and developments in telecommunication infrastructure, like the telegraph,
Internet, and mobile phones, have been major factors in globalization and have generated further
interdependence of economic and cultural activities around the globe.

Thomas Friedman and his best seller, The World Is Flat (2005) described three stages of
globalization. The first stage of global development, what Friedman calls “Globalization 1.0,”
started with Columbus’s discovery of the New World and ran from 1492 to about 1800. Driven by
nationalism and religion, this lengthy stage was characterized by how much industrial power
countries could produce and apply.

“Globalization 2.0,” from about 1800 to 2000, was disrupted by the Great Depression and both
World Wars and was largely shaped by the emerging power of huge, multinational corporations.
Globalization 2.0 grew with the European mercantile stock companies as they expanded in search
of new markets, cheap labor, and raw materials. It continued with subsequent advances in sea and
rail transportation. This period saw the introduction of modern communications and cheaper
shipping costs. “Globalization 3.0” began around 2000, with advances in global electronic
interconnectivity that allowed individuals to communicate as never before (Friedman, 2005).

In Globalization 1.0, nations dominated global expansion. Globalization 2.0 was driven by the
ascension of multinational companies, which pushed global development. In Globalization 3.0,
major software advances have allowed an unprecedented number of people worldwide to work
together with unlimited potential.

In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization:
trade and transactions, capital and investment movements, migration and movement of people,
and the dissemination of knowledge. Globalizing processes affect and are affected
by business and work organization, economics, sociocultural resources, and the natural
environment. Academic literature commonly divides globalization into three major
areas: economic globalization, cultural globalization, and political globalization.

An Official Definition of Globalization by the World Health Organization (WHO)

According to WHO, globalization can be defined as ” the increased interconnectedness and
interdependence of peoples and countries. It is generally understood to include two inter-related
elements: the opening of international borders to increasingly fast flows of goods, services,
finance, people and ideas; and the changes in institutions and policies at national and international
levels that facilitate or promote such flows.”

Paul James defines globalization with a more direct and historically contextualized emphasis:
 Globalization is the extension of social relations across world-space, defining that world-space in
terms of the historically variable ways that it has been practiced and socially understood through
changing world-time.

Globalization can be characterized by four factors; the growing worldwide interconnections, rapid,
discontinuous change, increased number and diversity of participants, as well as growing
complexity (Parker, 2005). According to the Dictionary of Economics (Bannock et al., 2003), the
term; globalizations, is defined as the ‘geographical shifts in domestic activity around the world
and away from the nation states.’ It can also be referred to the interdependence of economies,
through the increase in cross-border movement of goods, service, technology and capital (Joshi,
2009). Examples of such integrations can be seen in the growing presence of many multinational
companies as they expand into new regions (i.e. McDonalds) and the outsourcing of manufacturing
and services. There are four main areas that drive the recent wave of globalization; however, as
each area is very broad, this essay will focus on three drivers within the four categories.

Globalization (Concept Map)

Because of trade developments and financial exchanges, we often think of globalization as an
economic and financial phenomenon. Nonetheless, it includes a much wider field than just flowing
of goods, services or capital. Often referred to as the globalization concept map, some examples
of globalization are:

 Economic globalization: is the development of trade systems within transnational actors such as
corporations or NGOs;
 Financial globalization: can be linked with the rise of a global financial system with international
financial exchanges and monetary exchanges. Stock markets, for instance, are a great example of
the financially connected global world since when one stock market has a decline, it affects other
markets negatively as well as the economy as a whole.
 Cultural globalization: refers to the interpenetration of cultures which, as a consequence, means
nations adopt principles, beliefs, and costumes of other nations, losing their unique culture to a
unique, globalized supra-culture;
 Political globalization: the development and growing influence of international organizations
such as the UN or WHO means governmental action takes place at an international level. There
are other bodies operating a global level such as NGOs like Doctors without borders or Oxfam;
 Sociological globalization: information moves almost in real-time, together with the
interconnection and interdependence of events and their consequences. People move all the time
too, mixing and integrating different societies;
 Technological globalization: the phenomenon by which millions of people are interconnected
thanks to the power of the digital world via platforms such as Facebook, Instagram, Skype or
Youtube.
 Geographic globalization: is the new organization and hierarchy of different regions of the world
that is constantly changing. Moreover, with transportation and flying made so easy and affordable,
apart from a few countries with demanding visas, it is possible to travel the world without barely
any restrictions;
 Ecological globalization: accounts for the idea of considering planet Earth as a single global
entity – a common good all societies should protect since the weather affects everyone and we are
all protected by the same atmosphere. To this regard, it is often said that the poorest countries
that have been polluting the least will suffer the most from climate change.

FACTORS AFFECTING GLOBALIZATION

 Technology Changes: Globalization is in part where it is today due to the advancements

that the world has made in technology in general. Technology is one of the leading factors
in the evolution of Globalization.
 Transportation: Faster and cheaper transportation cost helps multinational companies to
build manufacturing facilities around the globe while maintaining scheduled, frequent
delivers of parts and finished product.
 Deregulation: From the 1980s ahead several rules and regulation in business were
removed particularly rules concerning foreign possession.
 Removal of Capital Exchange Controls: the movement of cash from one country to a
different was additionally controlled, and these controls raised over identical amount. If
investments in one’s own country looked unattractive, a business may purchase business
in another country.
 Free Trade: Several barriers to trade are removed a number of this has been done by
regional groupings of nations like the EU, WTO, SAARC.
  Taste and preference: Consumer Tastes have changed and consumers are more willing
to try foreign products.
 Emerging market: During last few decades there is seen constantly emerging markets in
developing countries this oped the door of globalization.
1.2 Globalization of Market and Production

Globalization, developed from economic aspect, has two main components: the globalization of
markets and globalization of production. Globalization of markets refers to the economies of scale
as the national markets open to global markets and they are connected. On the other hand,
Globalization of production refers to the situation where it becomes possible take advantage from
national differences in the cost and quality of factors of production.
1.2.1. The Globalization of Markets
The globalization of markets refers to the merging of historically different and separate
national markets into one big global market. In many markets the emergence of a global market
place has begun to occur. There are three causes: falling barriers to cross-border trade has made
it easier to sell internationally; tastes and preferences are converging on some global norm helping
to create a global market; and firms are facilitating the trend by offering standardized products
worldwide creating a global market. Marketing gurus in the last two decades have extensively
argued over customized marketing strategies in the globalization of markets. Theodore Levitt, in
his path-breaking paper ‘Globalization of Markets’, views the recent emergence of global-markets
on a previously unimagined scale of magnitude. Technology as the most powerful force has driven
the world towards converging commonality. Technological changes in telecommunication,
transport, and travel have created new consumer segments in the isolated places of the world.

Kenichi Ohmae also advocates the concept of a borderless world and the need for universal
products for global markets. Standardized products are increasingly finding markets across the
globe. Such globalization of markets has on one hand increased the opportunity for marketing
internationally while on the other has increased the competitive intensity of global brands in the
market. The simultaneous competition in markets between the numerous new competitors across
the world is increasing produce. This offers tremendous challenge to the existing business
competitiveness of firms, compelling them to globalize and make rapid structural changes.
Therefore, globalization of markets is one of the most fascinating developments of this century.
Its impact on economic transactions, processes, institutions, and players is dramatic and wide
ranging. It challenges established norms and behavior and requires different mindsets. Yet, it
creates opportunities for the well prepared participants who can be proactive and visionary.
Globalization of markets involves the growing interdependency among the economies of the
world; multinational nature of sourcing, manufacturing, trading, and investment activities;
increasing frequency of cross-border transactions and financing; and heightened intensity of
competition among a larger number of players. This phenomenon has been fueled by advances in
communication and transportation technologies, the spread of economic growth and wealth around
the world, the loosening of barriers to trade, and the formation of regional economic blocs.
Development of new technologies and the proliferation of new products also contributes to the
globalization of markets. Simply consider the following industries which came into existence only
in the last decade: medical imaging, biotechnology, composite materials, robotics, and process
innovations. Gaining momentum since the end of World War II, the globalization of markets has
led to the formation of irreversible economic linkages among countries. It has also shifted the focus
away from the nation-state, and more toward industry and the individual enterprise.

Globalization of markets is best reflected in the "internationalization" of business transactions.

This means that one or more aspects of economic activity carries an international character. One
of the parties to the transaction may be a foreign partner; the transaction may involve a foreign
currency; financing may involve foreign lenders; technology may originate from a foreign partner;
and so on.

It is possible to identify at least five dimensions or facets of the globalization of markets.

First is the fluid nature of manufacturing and sourcing activities. Today, business activity flows
freely to places best equipped to perform it most economically and efficiently. This is especially
apparent in the case of the service industry. Many U.S. customers may not recognize that when
they phone their software company, the consultant who responds at the other end of the line may
be an employee in Dublin, Ireland. Similarly, a hotel reservationist may be responding from
Jamaica and an insurance claim processor from the Philippines.
Second, competition for customers and markets has intensified significantly as a result of
globalization. Whereas only a handful of multinational companies dominated international trade
a couple of decades ago, today companies from all parts of the world are participating in worldwide
business. Companies from practically every nation are jockeying for positions in various
industries.

Third, the types of international business transactions have proliferated. In the past, much of
international business activity was in the form of export-import and foreign direct investment.
Today, transactions are varied and more complex: contract manufacturing, franchise operations,
countertrade, turnkey construction, technology transfers, international strategic alliances, and
more.

Fourth, technology spreads freely and rapidly between markets and players. Technological
leadership does not provide a monopolistic advantage for very long. Companies must capitalize
on their discoveries quickly, before others match them.

Fifth, borrowing-financing activity has become worldwide as well. Businesses finance their
growth and expansion through international capital markets. As such, they are able to take
advantage of varying interest rates and currency markets by tapping a wide variety of funding
sources. The implications of the increasingly global nature of market transactions are many. In a
fundamental sense, it makes the distinction between domestic and international redundant and
superficial. It threatens those players that confine themselves to a narrow set of opportunities and
it rewards those that can envision and operate in a larger space.6 Those enterprises that learn to
operate in a more complex, uncertain environment are more likely to succeed.

1.2.2 The Globalization of Production

The globalization of production refers to the sourcing of goods and services from locations
around the globe to take advantage of national differences in the cost and quality of factors of
production (such as labor, energy, land, and capital). By doing this, companies hope to lower their
overall cost structure and/or improve the quality or functionality of their product offering, thereby
allowing them to compete more effectively. The increased mobility of the factors of production,
especially the movement of capital, has changed countries’ traditional specialization roles
significantly. Consequently, many firms in developing countries seek to strengthen their
competitive advantage by specializing in differentiated products with an increasingly large
technological content. Such specialization has given rise to intra-industry trade between
developing countries. Abandoned(sacrifice) activities are often acquired by other firms in the same
industry to strengthen their positions. As a result, many firms, in all industries and different
countries, establish co-operative agreements or adopt strategies of mergers and network
organizations, which has contributed to a great wave in FDI during recent decades. Moreover, the
privatization of public enterprises across the world has also accelerated cross-border investments.

The globalization of production has led to multinational origin of product components, services,
and capital as a result of transnational collaborations among business enterprises. Firms evaluate
various locations world-wide for manufacturing activities so as to take advantage of local resources
and optimize manufacturing competitiveness. Companies from the US, the EU, and Japan
manufacture at overseas locations more than three times of their exports produced in the home
country. Intra-firm export-import transactions constitute about one-third of their international
trade.

Thus, globalization of production represents a new organization of production processes,

accompanied by technological advances and neoliberal ideology, which emphasizes the separation
of politics from economics. Globalization of production refers to the firms’ supply chain expansion
process across national boundaries, creates an opportunity for developing countries to engage in
international production networks via trade. Globalization of production enables developing
countries to participate in global production networks via trade. Described as the world's factory,
China specializes in assembly manufacturing mainly through processing exports. Firms use
imported intermediate inputs for production and, after processing or assembly, re-export the
finished products to international markets.

1.3 Drivers of Globalization

There are many factors that are expected to have contributed in the process of globalization. In this
section we will describe all the factors, their importance and relevance in driving globalization.
Advancement in technology is considered to be one of the major divers of globalization (Bang &
Markeset, 2011; Bauernfeind, 2006; Garrett, 2000; Masson, 2001; Obadan, 2008). Market drivers
include areas such as common customer needs and transferable marketing, whereby the emergence
of global markets for standardized products has enabled corporations to cater demands in new
markets with existing products. Levitt (1983) asserts mostly five drivers of market globalization:

 Technological Drivers: Technology shaped and set the foundation for modern globalization
innovations in the transportation technology revolutionized the industry. The most
important inventions on microprocessor and telecommunication enabled high effective
computing and communication on low-cost. Finally, the rapid growth of the internet is the
latest technological driver that created global e-business and e-commerce.
 Political Drivers: Liberalized trading rules and deregulated markets lead to lowered tarriffs
and allowed foreign direct investment in almost all over the world. The institution of GATT
and WTO are also ongoing drivers of globalization.
 Market Drivers: As domestic markets become more and more saturated, the opportunities
for growth are limited and global expanding is a way most organizations choose to
overcome this situation.
 Cost Drivers: Sourcing efficiency and costs vary from country to country and global firms
can take advantage of this fact. Other cast drivers to globalization are the opportunity to
build global scale economies and the high product development costs nowadays.
 Competitive Drivers: With global market, global inter-firm competition increases and
organizations are forced to play international. Strong interdependences among countries
and high two-way trades and FDI actions also support this driver.

Based on the synthesis view of scholars around the globe, following are drivers of globalization:

i. Economic liberalization: Economic liberalization has greatly contributed to the globalization

of trade and investment. The emergence of the multilateral trade regime under the WTO has
facilitated the reduction of tariffs and non-tariff trade barriers. In the coming years, the tariffs
are expected to decline considerably further.

ii. Technological breakthroughs: The breakthroughs in science and technology have

transformed the world virtually into a global village, especially manufacturing, transportation, and
information and communication technologies, as discussed here.
iii. Manufacturing technology: Technological advancements transformed manufacturing
processes and made mass production possible, which led to the industrial revolution. The
production efficiency resulted in cost-effective production of uniform goods on a large scale. In
order to achieve the scale economies to sustain large-scale production, markets beyond national
boundaries need to be explored.

iv. Transportation technology: The advents in all means of transports by roads, railways, air,
and sea have considerably increased the speed and brought down the costs incurred. Air travel
has become not only speedier but cheaper. This has boosted the movement of people and goods
across countries.

v. Information and communication technology: The advent of information and communication

technology and the fast developments in the means of transport have considerably undermined the
significance of distance in country selection for expanding business. There has been a considerable
reduction in international telecommunication costs due to improved technology and increased
competition. This has given rise to new business models, such as the off-shore delivery of services
to global locations and electronic business transactions.

vi. Multilateral institutions: A number of multilateral institutions under the UN framework, set
up during the post-World War II era, have facilitated exchanges among countries and became
prominent forces in present-day globalization. Multilateral organizations such as the GATT and
its new edition WTO contributed to the process of globalization and the opening up of markets by
consistently reducing tariffs and increasing market access through various rounds of multilateral
trade negotiations. The evolving multilateral framework under the WTO regime, such as Trade-
Related Investment Measures (TRIMS), Trade-Related Aspects of Intellectual Property Rights
(TRIPS), General Agreement on Trade in Services (GATS), dispute settlement mechanism, etc.,
has facilitated international trade and investment. Besides, the International Monetary Fund has
contributed to ensuring the smooth functioning of the international monetary system.

vii. International Economic Integrations: After the, World War II, a number of countries across
the world collaborated to form economic groupings so as to promote trade and investment among
the members. The Treaty of Rome in 1957 led to the creation of the European Economic
Community (EEC) that graduated to the European Union (EU) so as to form a stronger Economic
Union. The US, Canada, and Mexico collaborated to form the North American Free Trade
Agreement (NAFTA) in 1994. The reduction of trade barriers among the member countries under
the various economic integrations around the world has not only contributed to the accelerated
growth in trade and investment but also affected the international trade patterns considerably.

viii. Moves towards free marketing system: The demise(collaps) of centrally planned economies
in Eastern Europe, the former USSR, and China has also contributed to the process of globalization
as these countries gradually integrated themselves with the world economy. The Commonwealth
of Independent States (CIS) countries—all former Soviet Republics—and China have opened up
and are moving towards market-driven economic systems at a fast pace. However, the exceptions
to free market systems are the autocratic countries, such as North Korea and Cuba.

ix. Rising Research and Development Costs: The rapid growth in market competition and the
ever-increasing in consumer demand for newer goods and services compel businesses to invest
huge amounts on research and development (R&D). In order to recover the costs of massive
investments in R&D and achieve economic viability(sustain), it becomes necessary to globalize
the business operations. For instance, software companies such as Microsoft, Novel, and Oracle,
commercial aircraft manufacturers like Boeing and Airbus, pharmaceutical giants such as Pfizer,
Glaxo SmithKline, Johnson & Johnson, Merck, and Novartis, etc., can hardly be commercially
viable unless global scale of operations are adopted.

x. Global Expansion of Business Operations: Growing market access and movement of capital
across countries have facilitated the rapid expansion of business operations globally. Since the
comparative advantages of countries strongly influence the location strategies of multinational
corporations, companies tend to expand their businesses overseas with the growing economic
liberalization. As a result, multinational corporations constitute the main vectors of economic
globalization.

xi. Emergence of the global customers’ segment: Customers around the world are fast exhibiting
convergence of tastes and preferences in terms of their product likings and buying habits.
Automobiles, fast-food outlets, music systems, and even fashion goods are becoming amazingly
similar across countries. The growth of transnational satellite television and telecommunication
has accelerated the process of cultural convergence. Traditionally, cultural values were transmitted
through generations by parents or grandparents or other family members. However, television has
become the prominent source of transferring culture not only in Western countries but in Eastern
countries as well. Besides, advances in the modes of transport and increased international travel
have greatly contributed to the growing similarity of customer preferences across countries. Thus,
the process of globalization has encouraged firms to tap the global markets with increased product
standardization. This has also given rise to rapid increase in global brands.

1.3 Globalization Debate

What is the globalization debate? Well, it's not so much a debate as it is a stark difference of
opinion on how the internationalization of businesses is affecting countries' cultural,
consumer, and national identities—and whether these changes are desirable. The scholars opine
that, economic markets and economic interests cannot perform the functions of government.

i) Issue of jobs and Income distribution

One concern frequently voiced by globalization opponents is that falling barriers to international
trade destroy manufacturing jobs in wealthy advanced economies such as the United States and
Western Europe. Critics argue that falling trade barriers allow firms to move manufacturing
activities to countries where wage rates are much lower.28 Indeed, due to the entry of China, India,
and countries from eastern Europe into the global trading system, along with global population
growth, the pool of global labor has increased more than fivefold between 1990 and today. Other
things being equal, we might conclude that this enormous expansion in the global labor force,
when coupled with expanding international trade, would have depressed wages in developed
nations.
Fundamentally, inequality comes from a cluster of other sources; corruption, the overextended
power of states, technological change, demographic change and disease. Globalization,
engagement with the wider changes in the world, is as crucial for the less developed countries as
it is for the more developed ones. No country which has cut itself off from the wider world has
prospered. Large, multinational companies(MNCs) accumulate wealth and corporate power
become more powerful and inequality rises sharply. Corporates capture the elected government
and run nations around the world. Therefore, surely it cannot be right and proper. Therefore,
expanding globalizing processes are producing a more unequal world? Globalization and wage
inequality between skilled and unskilled workers is a long-standing debated issue in international
economics. Two competing explanations have been put forward as a cause for this phenomenon:
trade and skill-biased technological progress. According to the standard Heckscher-Ohlin (H-O)
theory and its companion Stolpher-Samuelson theorem, international trade is expected to increase
the relative wages of the skilled workers in a skill-abundant country while decreasing it in a skill-
scarce country. An alternative explanation is due to an increase in relative demand for skilled
workers because of improvement in technology.

ii) Labour policies

Globalization is clearly contributing to increased integration of labor markets and closing the
wage gap between workers in advanced and developing economies, especially through the
spread of technology. It also plays a part in increasing domestic income inequality. But erecting
protectionist policies to stanch the forces of globalization is not the best response. Policymakers
must instead focus on what can be done to help workers adjust to a changing world. Globalization
is far from being the whole story behind the narrowing gaps. If wage convergence were principally
the result of an integrating global labor market, one would see wages in Africa, the poorest region,
rise much faster than the others. But differences in domestic factors, such as the business climate,
governance, and education, also play a vital role in determining wage growth.

iii) Environment

Globalization has allowed society to enjoy many benefits, including increased global cooperation,
reduced risk of global conflict, and lower prices for goods and commodities. Unfortunately, it has
also led to serious negative effects on the environment like increased greenhouse gas emissions,
ocean acidification, deforestation (and other forms of habitat loss or destruction), climate
change, and the introduction of invasive species all work to reduce biodiversity around the
globe. Globalization process has increased dependency on environmental resources that eventually
has destructed different flora and fauna. This in turn challenged sustainable utilization natural
endowments.

iv) National Sovereignty

According to Stephen D. K.(2001) states national sovereignty as actual control over a state
exercised by an authority organized within this state. Sovereignty of the nations around the globe
is another concern voiced by critics of globalization is that today’s increasingly interdependent
global economy shifts economic power away from national governments and toward supranational
organizations such as the World Trade Organization, the European Union, and the United Nations.
As perceived by critics, unelected bureaucrats now impose policies on the democratically elected
governments of nation-states, thereby undermining the sovereignty of those states and limiting the
nation’s ability to control its own destiny. The formation and protection of sustainable freedom,
equality and justice in society depends totally on the exact sense of establishment of national
sovereignty. Therefore, the basis of freedom, equality and justice is national sovereignty. It should
be taken into consideration that globalization has powerful economic, political, cultural and social
implications for sovereignty. Critiqes opine that globalization erodes in the power of national
governments to direct and influence their economies (especially with regard to macroeconomic
management); and to determine their political structures. Governments and activists alike
complain that multilateral institutions such as the United Nations, the World Trade Organization,
and the International Monetary Fund overstep their authority by promoting universal standards for
everything, which in turn alter the scope of state authority. According to UNO(2000)
‘Globalization has led to a decline in the power of national governments to direct and influence
their economies (especially with regard to macroeconomic management); and to determine their
political structures. There is a strong indication that the impact of globalization is most felt through
the extent to which politics everywhere are now essentially market-driven. It is not that
governments are now unable to run their states, but to survive in office; they must increasingly
"manage" national politics in such a way as to adapt them to the pressures of trans-national market
forces.’
V) World’s poor

Poverty is generally explained as the scarcity or the situation in which a person lacks a certain
amount of material possessions or money. It is a condition in which a community or a person lacks
the essential needs to enjoy a minimum standard of living in the society (Lister, 2004).
Globalization and Poverty yields several implications. First, impediments to exports from
developing countries worsen poverty in those countries. Second, careful targeting is necessary
to address the poor in different countries who are likely to be hurt by globalization. Stiglitz (2002),
globalization fails in promoting development and hence continue to create poverty and instability.

Critics of globalization argue that despite the supposed benefits associated with free trade and
investment, over the past 100 years or so the gap between the rich and poor nations of the world
has gotten wider. In 1870, the average income per capita in the world’s 17 richest nations was 2.4
times that of all other countries. In 1990, the same group was 4.5 times as rich as the rest. In 2019,
the 34 member states of the Organization for Economic Co-operation and Development (OECD),
which includes most of the world’s rich economies, had an average gross national income (GNI)
per person of more than $40,000, whereas the world’s 40 least developed countries had a GNI of
under $1,000 per capita—implying that income per capita in the world’s 34 richest nations was 40
times that in the world’s 40 poorest.
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