FAQs On Inequality Undermines Democracy

Q 1. How does globalization contribute to economic inequality and weaken democracy in developing countries?

Answer:

Economic inequalities in developing nations can be made worse by globalization in a number of ways. Transnational corporations have the potential to generate a “race to the bottom” in terms of wages and working conditions, centralize money and power, and exploit workers and resources. 

By giving corporations and international financial institutions greater sway than democratically elected governments, globalization can also erode democracy by leading to policies that put private interests ahead of those of the public. Also, globalization might make it easier for wealthy individuals to evade taxes and move their money abroad, which would reduce the amount of money available for social and public services.

Q 2. How does income inequality affect the expansion and prosperity of the economy?

Answer-

The expansion and prosperity of the economy may be adversely affected by income disparity.  It may limit the majority’s purchasing power, which would diminish demand for goods and services and, thus, slow down economic growth.

In addition, income disparity can restrict access to education and training, which can result in a labor shortage, a decline in innovation, and lower productivity. Economic investment can be hampered by social discontent and political instability brought on by income inequality.

Q 3. What part can civil society organizations and individual people play in tackling inequality?

Answer-

Individuals and organizations from civil society can be extremely important in combating inequality. They can seek to modify discriminatory laws and practices, advocate for legislation and initiatives that address the issue and increase public awareness of it. They can also offer resources and assistance, such as financial aid, education, and training, to those who are negatively impacted by inequality.

Democracy is a form of government where the people, or their elected representatives, are in charge. It is founded on the ideas of political equality, the use of the majority, and the defense of personal freedoms. The unequal distribution of assets, opportunities, and advantages among people or groups within a society is referred to as inequality. Wealth, income, a good education, access to healthcare, a place to live, and a job are a few examples of these resources.