Topic: The relationships Globalization has towards poverty, inequality, and crime.

I choose to focus on the emphasis of crime, inequality, poverty, and globalization to help show how they are all related. As globalization spreads throughout the world crime and poverty continue to increase in areas affected by corporate and foreign government influence. Globalization, in many cases, is using the cheapest means of production to increase profitability. Things like free trade zones and corporate compounds are established in areas with little regulations on wage and tariff laws. This allows certain producers to exploit third world nations for their cheap labor force. Third world nations aid in the spread of globalization by attracting foreign capital to relocate within their region by offering tax incentives and by building the necessary infrastructure needed for production. These tools for cheap production contribute to the downfall of many economies. Poverty and crime often increase drastically in areas affected by such globalization. Those affected by this means of globalization work for close to nothing as they are unable to support themselves or their family’s through their low income. This is hard to counteract as companies threat to move their operation elsewhere leaving an even larger burden then before.


Third world countries accept foreign direct investments in efforts to boost their economy and to help build a more efficient government. Unfortunately, these loans are usually accompanied by unreasonable high interest rates and trade benefits that push them to fall father into debt. These examples of the destructive forces of globalization can be attached with what is seen happening in areas like Nicaragua. In 1979 factories closed their doors and relocated in other parts of South America that allowed cheaper means for production. This left many unemployed causing an even large state of poverty and increase in crime. Also with a dictatorship in power Nicaragua was found excepting large scale loans from the World Bank and the IMF. The extent of have these loans were used controversial as groups such as the Contras were aided by United States military in a covert war to over throw the Sandinistas. As these counter groups were dismantled the World Bank and IMF were able to implement their lows standards of free market and free trade policies. With these new policies advocated by the World Bank and IMF the increase in foreign investors has exploded since the 1990’s. This is a great example of how these organizations are taking advantage of third world nations by establishing their own polices and regulation to better serve themselves. These policies allow factories to create difficult and poor working conditions that are attached with very low wages. This helps create a work force that is constantly struggling to escape a state of poverty that is made more difficult because of the lack of labor rights. The crime rate in Nicaragua is classified as high which can be largely contributed to the lack of opportunity and poverty that can be seen created by globalization. Nicaragua is just one of the great examples of the focus of my topic on crime, inequality, and globalization. I hope this created good insight on the areas of focus I will be researching this semester.

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www.capitalforcommunities.org/articles
www.state.gov/r/pa/ei/bgn/1850.htm