Globalisation- Poverty and Income Distribution:
Most opponents rarely distinguish between poverty and income distribution and use the two terms almost interchangeably. But they are actually two different criteria. The additional income needed to lift a person above the poverty line is independent of how much additional income a rich person receives. Therefore, inequality could increase as the extent of poverty decreases and one's views about the desirability of globalisation andlor growth may depend on whether the criteria of poverty or income distribution is used. The effect of globalisation on poverty and income distribution can be broken into two separate questions. Firstly, what is the direct effect of globalisation on poverty or income distribution? Secondly, what is the indirect effect through growth, namely how does globalisation affect growth and how does groth affect poverty and income distribution?