**4. Globalization and society**

This section explores the interaction between globalization and society in the context of social sustainability. Three aspects of society, namely quality of life, urbanization, and equality, are considered.

#### **4.1 Quality of life**

In low-income nations, life expectancy has been positively correlated with globalization [46]. Likewise, quality of life measured in terms of human development index has been found to increase with globalization in several Asian countries [47]. At global scale, aggregate positive effect from globalization-related trade has been reported while also acknowledging disproportionate distributional concerns. The disproportionate concern is that globalization-related trade can lead to unemployment, reduced wages, and slower decline in poverty in some geographical regions and commercial sectors [48].

The overall effect of globalization on high-income, as well as low-income, nations is reported to be improved quality of life. Positive impacts include harmonization of the labor market, development of digital society [49], and reduced macroeconomic volatility due to diversification of risks.

#### **4.2 Urbanization**

Urbanization is primarily happening in low- and middle-income countries due to economic growth and globalization [50]. Benefits of urbanization are increase in employment opportunities, abundance of unskilled labor, and expansion of industrial, residential, entertainment, and commercial areas. Urbanization and trade openness can also reduce income inequality [51, 52], particularly when coupled with high institutional quality and democracy. However, a study in Africa has found that urbanization alone may not significantly impact equality in the absence of democratic reforms and institutional quality [52]. Institutional quality here refers to corruption control, law and order, and sound bureaucracy. On the flip side, disadvantages of urbanization include increased crime and land use change [50]. Farmland loss, ecological degradation, and decrease in biodiversity are some of the negative consequences of urbanization [53].

### **4.3 Equality**

The relationship between equality and globalization is very complex. Generally, globalization increases inequality within a nation but decreases inequality between nations [54]. It can therefore be argued that the benefits of globalization have not reached everyone equally. There are also mixed relationships between income inequality and globalization with some countries seeing the benefit of globalization while others have not [55]. Statistical analyses have shown that social spending may not necessarily cushion the impact of inequality brought about by globalization [55]. Overall, better approach to globalization is needed to ensure that inequality does not rise due to globalization and outweigh its positive effects.
