Title: Causes, Effects & Solutions for Global Inequality - E&C
Headings: Global Inequality: Causes, Effects & Solutions
Causes, Effects & Solutions for Global Inequality
Global Inequality: Causes, Effects & Solutions
In the following, the facts, development, causes, effects and solutions regarding global inequality are examined.
Audio Lesson
Contents
How did Global Inequality develop over time?
Important Global Inequality Facts
Causes for Global Inequality
Political goals
Exploitation of poor countries
Tax avoidance
Lack of education
Lack of innovation
Gender inequality
Insecurity regarding property rights
Low investment incentives for firms
Low living quality
Regional factors
Conflicts
Famine
Consumption behavior
Natural disasters
Data Source: Credit Suisse Global Wealth Report 2019
Effects of Global Inequality
Health effects
Social tensions
Increased probability for conflicts
Frustration
Drug use
Poverty
Starvation
Lack of access to education
Bad working conditions
Radical movements
Migration
Data Source: Credit Suisse Global Wealth Report 2019
Solutions for Global Inequality
Better access to education
Financial subsidies
Create incentives for firms to locate to poor areas
Increase incentives for innovation
Worldwide support
Global wealth tax
Improve workers’ rights
Establish minimum wages
Increase national stability levels
Improve trade policies
Change consumption behavior
Convince others
Conclusion
Sources
About the author

Content: Exploitation of poor countries
Poor countries often get exploited by rich countries in several ways. Since poor countries often depend on the demand of rich countries, they are heavily reliant and become dependent. Thus, rich countries can often dictate the terms on which the countries interact and make business. Moreover, rich countries also tend to shift their problems to foreign countries. An example of this is the transportation of waste from Western countries to poor countries in Africa in order to get rid of the waste problem. Additionally, firms often exploit poor countries in terms of working conditions and low wages. Therefore, people and poor countries as a whole are often exploited by rich countries or multi-national firms which leads to a significant level of inequality. Tax avoidance
Big firms often try to avoid taxes whenever possible. They are also quite successful in doing so, since they are able to hire the best tax consultants and are also quite flexible in terms of shifting their money in order to avoid taxes. Although beneficial for firms, tax avoidance contributes to the global inequality issue since taxes are usually collected to finance public infrastructure and to improve the living conditions for locals.