Which of the following is not the major cause of Inequality among nations ?

Correct option is D

Inequality among nations arises due to a combination of economic, political, and social factors. While trade between developed and developing nations plays a role in economic disparities, it is not a major cause of inequality. Instead, the following factors significantly contribute to global inequality:

1. Uneven International Economic System – Correct as a major cause

   • The global economic system is structured in a way that favors developed nations over developing ones.
   • Institutions like the IMF, World Bank, and WTO have historically been criticized for policies that benefit wealthy nations while keeping poorer nations dependent.
   • Unequal access to capital, technology, and markets creates a persistent economic gap.

2. The Power Game in International Politics – Correct as a major cause

   • International relations are often influenced by geopolitical power struggles.
   • Powerful countries influence global policies through diplomatic pressure, military interventions, and economic sanctions.
   • Organizations like the UN Security Council are dominated by a few powerful nations, leading to unequal decision-making.

3. Emerging Labour Markets and Skill Differentials – Correct as a major cause

   • The disparity in education, skill development, and wages between nations leads to economic inequality.
   • Developed nations attract highly skilled labor, while developing nations struggle with brain drain and low wages.
   • Automation and technological advancements widen the skill gap between rich and poor countries.

4. Trade among developed and developing nations – Not a major cause of inequality

   • Trade can reduce inequality by providing developing nations access to international markets.
   • Countries like China and India have benefited from global trade, reducing poverty and increasing GDP.
   • However, unfair trade practices, such as tariffs and subsidies, can create challenges, but trade itself is not the primary cause of inequality.