lecture10 - Lecture 10 (Feb 14) Globalization and Poverty...

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Lecture 10 (Feb 14) Globalization and Poverty z Globalization and poverty z Mutinational corporations and poverty (1) living wages (2) working conditions z Globalization and nation-state
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Poverty measures 1. International poverty line ($1 or $2 per day) 2. National poverty line: a threshold income above which citizens are assured a minimum nutrition level and other necessities in individual countries 3. Poverty gap: distance below the poverty line as a proportion of the poverty line -> Poverty gap calculates how far individuals and households are dispersed from the poverty line. Thus, the poverty gap is calculated by the mean shortfall from the poverty line, and the non-poor are considered to have zero poverty gap. This measure can reflect the depth of poverty. .
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Figure 5.1. National Poverty Headcount (% Population) 34 35 36 37 38 39 40 1985-1994 1995-2005
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Mutinational corporations and poverty: (1) living wages z Living-wage proponents : The process for setting wages according to a living-wage formula be standardized and multinational firms should adopt industry-wide standards for paying a living wage. z Multinationals can well afford to pay higher wages to workers in developing countries because those wages are typically but a tiny fraction of the selling price of the product. z The living wage should be mandated in all countries, not just a few, so that there is no place for employers to go.
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<-> Problems. 1. Workers employed by multinationals are generally well paid, unionized, have legal protection of their rights, and receive mandated benefits. Payment of a living wage to these workers may be redundant. 2. Focusing on paying a living wage to workers employed by multinationals diverts attention from the far more serious and relevant problem of poverty and from the need to promote rapid economic growth to help eradicate poverty. 3. The goal of the living-wage proponents would be better served if they would lobby to________________________________________ ________________________and other trade barriers more generally, and __________________________________________. 4. Efforts should be made in developing countries themselves to
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This note was uploaded on 04/09/2008 for the course POL SCI 139 taught by Professor Ha during the Winter '08 term at UCLA.

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lecture10 - Lecture 10 (Feb 14) Globalization and Poverty...

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