Quick questions on Inequality and the uneven gains of liberalisation explained: H2 History

The gains of globalisation were distributed very unevenly between countries. Some economies, above all in East and parts of Southeast Asia, integrated successfully into world trade and investment and achieved rapid growth and dramatic poverty reduction. Others, lacking the conditions to compete, were bypassed or marginalised, gaining little from integration and sometimes suffering from exposure to forces beyond their control. The key reason for this divergence was the difference in starting conditions and, crucially, in policy: economies that invested in education and skills, built sound institutions, and managed their integration into the global economy were far better placed to seize its opportunities than those that opened passively or lacked the capacity to compete.

Within countries too, the gains were unequally shared, often widening inequality even where aggregate growth was strong. Liberalisation tended to reward those who owned capital and those with the skills and education to thrive in a more competitive, globally integrated economy, while exposing the unskilled and those in uncompetitive sectors to harsher competition, displacement and insecurity. Owners of capital and skilled workers could capture the gains from access to world markets and investment, while less skilled workers and protected industries could lose out. The result was that the benefits often flowed disproportionately to those already better off, widening the gap between winners and losers within societies.

Explain why some countries gained far more from globalisation than others. [4 marks]

Explain why liberalisation often widened inequality within countries. [12 marks]

"Globalisation lifted the world economy but widened the gap between winners and losers." How far do you agree? [20 marks]