globalization and poverty
Many people who are concerned about the fate of the world's poor now attribute their plight to globalization.They argue that globalization has weakened the position of poor countries and exposed poor people to harmful competition.Their concern is understandable,especially since the gap between rich and poor has indeed become more glaring in recent decades.However,proving a direct link between economic globalization and poverty is a complex task for several reasons.By common consent,globalization has proceeded rapidly since the 1980s.Yet according to the recent Global Poverty Report,the proportion of the world population living in poverty has declined from 29% in 1988 to 26% in 1998.Moreover,social indicators for many poor countries also show improvement over several decades.
Overall,globalization helped the poor countries that adopted sound policies and contributed to income convergence among the countries participating in the global system.However,since stagnation continued in many countries isolated from globalization,world inequality still rose.
It is time for opponents and proponents of globalization to join forces to help low-income countries expand their access to rich country markets and develop and nurture their governing institutions so that the world's poor gain from the benefits of a more integrated world.