POSLJEDICE GLOBALIZACIJE NA SIROMAŠTVO I JAZ IZMEĐU BOGATIH I SIROMAŠNIH

Abstract

Necessary and indivertible process of globalization undoubtedly has numerous positive effects, but for most of the developing countries globalization as a consequence didn’t have positive economic effects. The most important disadvantage and the most often argument for the skeptics and critics of the globalization and its consequences is increasing gap in allocation of income between poor and rich. That is the most often critic towards IMF whose role should be helping governments to challenge globalization, economic development, macroeconomic stability and reduce poverty. The globalization today, with time distance from „Washington consensus“, is considered as deeply contradictory process. While analyzing recent studies in this paper unfairly, but on purpose the positive effects of globalization process are omitted and focus is on papers that are dealing with negative aspects in context of increasing number of poor and increasing gap between poor and rich. The first part of the paper is considering some of the set out critics of globalization with a focus on role of the IMF and its accomplishment and failures. The second part of the paper is study of connection between movement of poverty and income, and distribution of the increased income, where the given results are undoubtedly on the side of the critics of globalization process. The results are in some cases compared with KOF index of globalization. The third part of the paper is narrowing study on the selected transitional countries and is examining the correlation between GINI index and KOF index of globalization, with review of given relations in Republic of Croatia. Comparing results with up to now published results the paper is concluding a lots of time mentioned thesis about problems with globalization structure and its fundament regarding a liberalization of market, if all that for a consequence has a larger polarization of the world. The main culprit of globalizations negative effects large number of authors finds in inadequate institutional mechanisms, therefore the possible solution for negative effects is proposed in regulation mechanism. And again, as well as a many times throughout the history, neoliberal idea has less and less arguments and more and more poverty. It is impossible to imagine modern economy without globalization. Globalization is the one that shapes economic developments at the global level. The crisis spills over from developed to developing countries. A modern economy brings economic benefits to most of the population, but it also shows tendencies reverse proportionality, since it harms the poorest.