Decline in Global Income Inequality Research Paper

Decline in Global Income Inequality - Research Paper Example   Globalization has resulted in multicultural societies that have encouraged cross-cultural understanding and mutual respect. The societies across the globe have become more tolerant. At the same time, the governments across the globe have introduced radical reforms in their socio-economic and political system to make people from different culture, race and nationality adjust within the new social order with more ease. The businesses have also realized the need to incorporate changes that would need the changing requirements of the fast transforming dynamics of the societies. The compulsions of the contemporary times have therefore promoted the need for the common goal and collective responsibility for peaceful co-existence.   According to Stiglitz (2007), globalization has brought in more influx of multinational companies in the developing countries which have all negotiated with the intent purpose of benefiting the parent companies. The monopoly of American influence in all the leading international financial institutes like World Bank and IMF have followed the American policy of one-way transparency whereby the developed and under-developed countries, must open their market and relax their laws to suit the interests of the multinational companies. While it may be true to a certain extent, it also cannot be denied that business from developed countries has significantly improved the economy of underdeveloped countries and facilitated the socio-economic growth of the developing nations. Firebaugh (2004) has also affirmed that globalization had actually operated to boost industrialization in the developing countries.