Capital accumulation and poverty in the process of financialization

In this thesis, the relation between capital accumulation and poverty is scrutinized in the context of social politics. The propounded argument is that the mode of accumulation which is regulated in order to achieve to the goal of full employment is necessary to increase employment and income, and also this is fundamental to built a more equitable and democratic social structure on behalf of poor. Capital accumulation might increase poverty, because it is financed from total value added. However, improving living standards of poor is based on employment and increasing income, which are created in the process of capital accumulation. Therefore capital accumulation must be regulated in order to achieve the goal of full employment. Regulation of accumulation is a priority beyond for the goal of providing the balance between supply and demand, and also equitable distribution, for the democratic society. Decreasing capital accumulation rates in the developed countries are the consequences of the strategy of the leading firms which have been avoiding from capital accumulation, and delocalizing the production processes to the countries in the periphery. However, value added created all across the world has been concentrated in the developed countries. Although the developing countries have been undergoing the cost of capital accumulation, their share in total valued added have been decreasing. Because of this reasons, this countries are the region where the poverty rates are highest. This relation between accumulation and poverty is the consequence of the cannels of financialization which determinates the sphere of firm and the operations of global value chain which is the contemporary mode of firm structure. Data based on Millennium Development Goals are examined in order to scrutinize poverty in the global context. After exhibiting deficiency of this data, the achievement of the goals is compared with the inequality of income and wealth all across the world. Deficiency of the goals and facade of the data are introduced through a comparison based on the labor markets.