The global reality proves the 'economic man' theory is not completely right in the modern context - Madhavan Gopalachary.
In the economic scenario of the 21st century, in the age of globalization and free competition, in the age of equality, fraternity and liberty, let us examine the distribution of global wealth as per the dispatch of Ms. Olivia Ward in Ontario, Canada based newspaper 'The Toronto Star', that findings of Helsinki based World Institute for Development Economics Research, a division of United Nations University, are:
The estimated global population is around 6 billion. 3 billion live in Asia. The total worldwide assets of all countries is estimated at $ 150 trillion as at end 2005.
*The richest 2% of the adults, approximately, 120 million people, control 50% of the global wealth.
*Out of the above, 1% or 60 million, control 40% of it.
*The balance 1% or 60 million people control the rest 10% of it.
*50% of the world population has an asset or net worth of less than $ 2200 or around INR 88,000
*The rest 48% do not have any assets at all.
*The richest country in the world USA, has the highest per capita income of $ 180,837
*Japan follows it with $ 143,427
*Canada has a per capita income of $ 89,252 and has 0.2% of the wealthiest 1% in the world.
The bottom 125 countries have per capita income of less than 500 dollars. In some of the poorest countries, people earn just a dollar a day or even less.
Globalization has not helped the poor and developing countries to the expected extent. The reason is obvious. You need a very large Capital base to grow. Of course, countries like India and China have benefited considerably by it, but because of the huge populations the impact is far less. It has benefited the educated middle class in such countries. Globalization, as a concept is good and nothing wrong with that. It encourages meritocracy. However, there are two sides to a coin. It helps only a select few in all countries. They are either already rich or educated or both. But the fact remains that the uneducated and unskilled poor have become poorer in almost all countries. It is not a level playing ground for them. The money flow has not percolated down to the underprivileged.
Disparities in income is a global phenomenon. Even in a rich country like USA it exists. However, it appears that it is better to be poor in a developing country rather than in a developed country, despite the doles and handouts. According to the theory of 'economic man', an average man or woman tries to maximize the advantages that are available at his/her disposal to improve the quality of life. But that needs capital, a lot of it today. The efforts of a poor man (and woman) without enough capital, is like a drowning man flaying his arms and legs in desperation, as the life ebbs away slowly and painfully. With the global food shortage and oil futures expected to touch USD 130 per barrel, things are going to become more difficult for the common man.
The global reality proves the 'economic man' theory is not completely right in the modern context. It is a sad fact that majority of the people in the world are not able to attain even the first level of Abraham Maslow's theory of hierarchy of needs. Human beings have become selfish and like animals they eat, sleep, mate and fear. Very few help or care for each other. We can't blame them entirely because life has become difficult. However, those who can help, do not care. The animals are better. They look on mournfully when their own kin is in difficulty or trouble or when attacked by a predator. They even try to help, if possible, within their limited mental and physical capacity. We can't blame the predator because that is the law of nature and nature's balance has to be maintained. The predator has to kill to eat and survive. The world looked on passively when the Rwandan genocide took place. It took a very belated action in Bosnia-Herzegovina. It is doing nothing in Darfur where genocide is taking place. It is doing nothing in Myanmar. It is doing nothing in Somalia. All we have is rhetoric and no action. Millions of humans are starving and suffering all over the world. We humans have a lot to learn from the so called animals.
*Reference:
The statistics are taken from the dispatch of Ms. Olivia Ward in the 'Toronto Star' issue of December 06, 2006 and was republished by us with permission. Our grateful acknowledgement to them -www.thestar.com. This is an abridged, revised and updated version of our original editorial published in December 2006 and released by MMG Communications for global readership in public interest.
© Copyright, May-08 . Without prejudice. All rights reserved
Globalization and Disparities in global wealth - To learn more about this author, visit Madhavan T Gopalachary's Website.
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Madhavan T Gopalachary
(Visit Madhavan's Website)
Madhavan Gopalachary, nick name "madgopes"
(g pronounced as in go) given by IIT
classmates, is a Mechanical Engineer and
an alumnus of Indian Institute of
Technology, Madras having passed out
specializing in IC Engines &
Thermodynamics.
He has nearly 35 years of experience in
the Corporate World. He started off as a
trainee and handled sales, marketing,
manufacturing, product management, profit
center management, strategic planning and
corporate development including R & D in
various organizations and at various
levels before becoming a CEO. His last two
professional assignments were at CEO level
before embarking to start management
consultancy business on January 01, 1998.
He has worked for British, Swedish MNCs as
well as very large Indian business houses.
He has spent a large portion of his time
from June 1998 till date in East African
Countries practicing as an independent
Management Consultant.
More details can be obtained at the
following web sites:
mmg.name
/mtg.html;
mmgconsu
lting.biz/
Madhavan's articles can be accessed at www.madgopes.com
.
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