Globalization and Perceptions of Social Inequality
Author(s)
Lubker, Malte
Abstract
Rising inequality is one of the most problematic aspects of the current wave of globalization. There is still heated debate on whether and how globalization causes greater economic and social differences, but certain trends have brought the issue of inequality to the fore. Past decades of globalization have coincided with increasing inequality within countries. Increased capital mobility has led to competition between countries for investment, and since government intervention on the redistribution of income is increasingly perceived as an obstacle to investment, this could negatively affect governments’ willingness (and ability) to take action against inequality. And so far, globalization has seldom bridged – indeed it has often increased the gap between rich and poor countries. Many people thus readily associate globalization with unfair social outcomes and oppose it precisely for this reason; the anti-globalization movement builds on the feeling that prevailing patterns of trading relations and income distribution are unjust and morally reprehensible. As argued below, the issue of inequality therefore needs to be addressed for globalization to be politically sustainable. If it is true that opposition to globalization and opposition to inequality are closely linked, tolerance of inequality becomes a key factor in the political calculus. Protest from a tiny, if vocal, minority can be overridden if a majority of citizens shows little concern for inequality. If this proves to be the case, globalization can be pushed ahead regardless of its social consequences. However, if people resist rising income inequality, policies that ignore this will run into ever greater difficulty.
