Poverty is defined as the condition of having little or no money or goods. For most of the developed world, it is incomprehensible to believe the notion that there are persons in developing nations who endure their daily lives on less than a couple of cents per day. There are some who have argued that the issue of poverty can be eradicated through globalization. However, Naked Economics: Undressing the Dismal Science author, Ian Wheelan, would most likely argue that globalization would not put an end to poverty because developing countries have governments that are run both ineffective and corrupt, are woefully unproductive, and lack the necessary human capital needed to lift its citizens out of poverty.
To begin with, Wheelan would contend globalization cannot
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For a business to set up shop in a developing country, they would first have to build and upkeep the infrastructure needed to, per se, extract oil. In consequence, it becomes “expensive and difficult to conduct even the most simple business,” because money that would be spent on the eradication of poverty would be spent on the upkeep of infrastructure needed to keep the business in the country (page 51). Third-world countries also have higher levels of governmental corruption. With government officials working in their own interest, and not that of the common individual or betterment of the country, it posses a hinderance in the lowering of poverty levels. Resources that a business would bring into a country, would be hoarded “by autocrats or bureaucrats or politicians rather than by the market” (page 85). Governments such as these also control vast sectors of the economy. Such tight control of the economy hinders the free market and inhibits the ability of a nation to grow its economy and raise its people out of