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Many critics of global capitalism argue that poor countries are being exploited by richer countries that move in and build international facilities to use their most abundant resource: labor. China and India have a comparative advantage over the US and EU (and other countries) because their labor is more abundant and costs less.
The article makes the point that despite the continued high poverty rates, the average income of people in those countries is increasing, which is an argument in favor of global expansion where everyone wins. Their governments have learned how to market their assets and seize opportunities through trade and foreign investment.
There is still much debate about the accuracy of reports; 'The official position on global poverty ought to start, at a minimum, to acknowledge the uncertainty surrounding the figures and, further, to concede that the truth is likely to be better than the official figures say'.
The author states that it could benefit the countries to report higher poverty levels to qualify for more WTO aid.
Thoughts?
http://www.columbia.edu/~xs23/papers/worldistribution/Economist%20March%202004.htm
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The expert determines if higher poverty levels should qualify for more WTO aid. This solution provided an opinion to an article.
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In my opinion, I believe that it is true that the richer countries will exploit the poorer countries to have international businesses. However, they also need to pay their workers well, instead of paying them less, and having them live in a nearby building as well as working over twelve hour work days. Now, ...
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