Globalization and Social Welfare, Essay Example

There is a considerable dichotomy in thought regarding the impact globalization has on social welfare.  Changes in globalization tend to result in changes in GDP and GDP per Capita which can also be contributed to other economic factors.  Changes in social welfare can not only be affected by economic factors, but can also be impacted by changes in social attitudes.  Because there are so many variables involved in analyzing the relationship between globalization and social welfare, it is fairly easy for a researcher to introduce bias into any given study.

There is also a disparity in what theory is used to evaluate this relationship.  In his article, Yoon (2009) cites several studies indicating that developing nations tend to reduce spending on social welfare as they increase their exposure to international markets.  This theory is called the “efficiency thesis.”  Yoon also points out the converse theory called the “compensation thesis.”  This theory argues that globalization efforts result in economic insecurity and the subsequent increase in social welfare spending in order to stabilize economic volatility.  Ultimately, Yoon contends that factors other than economic (regime type, strength of populace political parties, etc.) are stronger drivers of social welfare than international trade issues.

With an entirely different perspective, Bhuyan (2010) contends that globalization encourages immigration.  Increases in immigration tend to result in new laws and restrictions on who can and cannot receive social welfare.  Bhuyan asserts that these changes in social welfare policy tend to create“devolution” in overall social welfare for legal U.S. citizens.  If this thesis is true, then continued increases in international interdependence could further reduce social welfare benefits for America’s poor.

Considering these and other studies, it is almost impossible to evaluate the future of social welfare in light of increasing globalization.  There are simply too many dependent variables involved.

References

(Bhuyan R 2010 Reconstructing citizenship in a global economy: How restricting immigrants from welfare undermines social rights for U.S. citizens)Bhuyan, R. (2010). Reconstructing citizenship in a global economy: How restricting immigrants from welfare undermines social rights for U.S. citizens. Journal of Sociology and Social Welfare, 37(2), 63-85. Retrieved from http://web.ebscohost.com.ezproxy.apollolibrary.com/ehost/pdfviewer/pdfviewer?vid=13&hid=107&sid=02365b4c-964b-431a-b3ec-b55f62cd2688%40sessionmgr10

(Yoon J 2009 Globalization and the welfare state in developing countries)Yoon, J. (2009). Globalization and the welfare state in developing countries. Business and Politics, 11(2), 31-32. Retrieved from http://web.ebscohost.com.ezproxy.apollolibrary.com/ehost/pdfviewer/pdfviewer?hid=11&sid=02365b4c-964b-431a-b3ec-b55f62cd2688%40sessionmgr10&vid=7