World economy: against the disadvantages of globalization helps only redistribution

Rich countries benefit in particular from globalisation. But there are also losers, says world economic researcher Holger Görg. The state must take care of that.

World economy:   against the disadvantages of globalization helps only redistribution

The biggest winners of globalization are industrialized countries, it is said in a recent study by Bertelsmann Foundation. What does this mean for inequality in world? Time Online has asked globalization researcher Holger Görg.

Online Time: HerrGörg, a Bertelsmann study now showed that rich countries benefit more from globalization than poorer ones. Vergrößertdie globalization thus global inequality?

Holger Görg: No, developing and emerging countries are picking up. And it lebenviel fewer people in poverty than before – thanks to DerGlobalisierung. We are still far from having all Länderdas equal income levels. But trend is in DieRichtung.

Online Time: Chinagilt always considered big globalization winner, but in Studielandet China in one of last places. How come?

Görg: Rich states, in absolute terms, have more to Einkommengewonnen. But this completely ignores how developed dieStaaten are. The percentage gains are more interesting. As developing and emerging countries are much stronger than DieIndustrienationen. China is clearly number one: by DieGlobalisierung, income of a Chinese has been more than quintupled since 1990. And 98 euro, which an Indian seit1990 earns on average every year, is quite a lot at a bruttoinlandsprodukt of 1,500 euro per capita in India, in Germany that would be very little.

Darren Görg

Holger Görg is professor at Institute of World Economics at University of Kiel. He is owner of chair of foreign trade. GÖRG researches international companies, exports, outsourcing and effects of globalization.

Online Time: The study is only about comparing countries, not within countries. Do all Germans benefit from globalisation?

Görg: Inequality is increasing in Germany and also in all AnderenLändern, because profits from globalisation do not benefit everyone. This aspect is ignored in study. The upper class benefits all over world. AndereBevölkerungsschichten, both in industry and procedurewithout. The poorly trained werdenzurückgelassen, including those who do not cooperate with customers or AnderenMenschen. They are no longer wettbewerbsfähig in labour market, because wages are much lower in or parts of world. The typical example is steel workers in Denusa.

Online Time: Wiesteht It about middle class?

Görg: It is known that middle class is getting smaller worldwide. The question is wher people get up or down. A colleague has recently shown that middle class tends to rise and thus counts as DenGlobalisierungsgewinnern. But research has not yet been completed.

Online Time: Wiesieht in poorer countries: who suffers here under DerGlobalisierung?

Görg: Through globalization, vast majority deserve more than before, but ors lose ir connection within ir society. DieArbeitgeber expect employees to ähnlicheFähigkeiten as in industrialized countries. From China, DieTextilproduktion is currently migrating to countries with even lower wages, for example to Vietnam. Those who work in China as a seamstress or closer will refore quickly become losers of globalization.

Online Time: EinigenMenschen would it be better to go without globalization?

Görg: Yes. That is big problem of globalisation.

Online Time: Waskann you do about it?

Görg: Two states. There vocational social security net that will keep people undihnen an income if y lose ir job. So as Germany and inmost developed countries. But that's not enough. There must be opportunities for furr training and retraining in order to offer denMenschen a perspective. Many studies show that problem DerArbeitslosigkeit not only loss of income, but dasGefühlvon lack of prospects.

Online Time: DieUSA and EU are introducing new trade tariffs. Will it be a little daranändern who benefits from globalization?

Görg: Grundsätzlichnicht. There are only tariffs füreinige few were. And if you look at US: do duties really lead to steel workers being zuGlobalisierungsgewinnern again? Glaubeich. Higher Preisefür steel leads to demand for less steel. Far-off high wages shows Sichein problem: The Industrienreicher countries are no longer competitive. Area cons DerGlobalisierung helps NurUmverteilung, auchinternational. EineMöglichkeit would be to Gewinnevon companies in all countries similarly zubesteuern and to support losers of globalization with denEinnahmen.

Date Of Update: 10 June 2018, 12:02

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