Disjunctive States Essay Example | Topics and Well Written Essays - 1000 words

Disjunctive States - Essay Example At the same time income per head is raising in the countries of the North where only 15 per cent of the world population live. This has led huge numbers of migrants from South to seek a better life in the North and this has created international political frictions. The goods produced by the South countries are less valuable for the developed countries. Moreover the North reduces prices on the materials exported by the South, imported by the North and increases prices on the materials exported by the North, imported by the South. The North has veto power and therefore it is a dominant decision-making authority. It reduces the ability of the poor countries to manage the global economy because their products are not needed and their opinion is not counted by the rich countries. That is why poor countries are usually unhappy with the management of the global economy because of the small role that they play in its organization. Since Lenin's time, many Marxists have attributed poverty in the South to the concentration of wealth in the North. Capitalists in the North exploit the South economically and use the wealth to buy off workers in the North. Widening North-South gap could create space for counter-revolution. Revolution should change the system and put an end to transferring wealth from the periphery to the North. Many people throughout the global South have turned to political revolution as a strategy for changing economic inequality and poverty. Today the most powerful third world revolutions are the Islamic revolutions in the Middle East. Even more than the communist revolutions of the past, Islamic revolutions are directed against the North and reject the Western values on which the international system is based. Like communist ones, Islamic revolutions gained support and legitimacy from the plight of poor people. When revolutionaries succeed in taking power, they usually change their state's foreign policy. However after several decades in power, revolutionaries come to support the norms and rules of the international system (which are favorable to them as state leaders). The origin of today's North-South gap returns to the colonization of the Southern world regions by Europe over the past several centuries. This colonization occurred at different times in different parts of the world. Globalists mentioned the economic exploitation of the South by the North, which is an essential element of the capitalist system. They argue that free trade represents an unequal exchange between the North and the South in the economy controlled by the monopolies of the North. To move from poverty to well-being this requires the accumulation of capital. Capitalism emphasizes overall growth with considerable concentration of wealth, whereas socialism emphasizes a fair distribution of wealth. Wealth accumulation depends on the meeting of basic human needs such as access to food, water, education, shelter, and health care. In order to manage the problem we should encourage the technology and innovation in the third world economies. The industrialization of the South can be achieved by a reform of the international market by evolution of the population (education of women and urbanization), diversification of economy through import and export substitution, and regional integration. Liberals suggest, to reduce the North-South gap within the modern economic system, the free trade as a way to promote mutual growth of all parties involved. The

Pay productivity in China, Flexibility of wage determination in China Essay

Pay productivity in China, Flexibility of wage determination in China - Essay Example Eldies (2003) explains wages are the returns of labor as a factor of production and wage flexibility as the ability of wages to respond to changes in the demand and supply for labor. According to Gordon and Li (1999), under perfect wage flexibility, wage is determined at the point where the marginal revenue of labor is equal to the marginal cost of labor. Policy changes such as the household registration system reforms and the shift of labor market from a centrally planned to a market oriented market led to increased labor mobility Sweeney (2014). The increased competition saw a huge demand for increase in capacity building as labor sought for higher education so as to remain competitive. As a result a relatively uniform wage rate in most of the sectors in china has moved towards the set market clearing wage. Government owned enterprises wages are highly regulated through policies such as minimum wages and wage setting. People in different job groups earn different wages. Then private sector labor market since 1990 economic reforms has adopted the labor contract system. Under this system, the employees are not permanently employed and wage is set through an agreement between the employer and the employee. This system has since led to massive layoffs which have led to government intervention through policy reforms. Dong and Bowles (2002) defines pay as the returns of labor as a factor of production and productivity as the output per unit of labor input. They point out that productivity can be increased through capacity building and motivation among other factors. According to Cowen (2010) pay is one of the motivational factors and an increase in pay leads to an increase in productivity as workers are highly motivated to work. The global financial crisis led to a decline in the Chinese productivity growth. The productivity growth went to a decline for the first time since the