Not Enough Globalization

By Kevin

A quick link to a paper by Pierre-Richard Agénor of the World Bank, "Does Globalization Hurt the Poor?" A partial abstract:

I use both individual indicators of trade and financial openness, and a "globalization index" based on principal components analysis, and test for both linear and nonlinear effects. The results suggest the existence of an inverted U-shape relationship between globalization and poverty. At low levels, globalization appears to hurt the poor; but beyond a certain threshold, it seems to reduce poverty – possibly because it brings with it renewed impetus for reform. Thus, globalization may hurt the poor not because it went too far, but rather because it did not go far enough.
The above link is to a working paper. Here's a copy that was published in the journal International Economics and Economic Policy, Vol 1. No. 1. March 2004.

-- June 10, 2005 2:47 PM |

Comments

Riz wrote:

Islam can ‘Make Poverty History’ (Abstract)

Poverty has been a source of misery for millions within Africa for decades and the forces of globalisation have further perpetuated the levels of poverty. In response to this economic predicament within Africa, the inception to ‘Make Poverty History’ has been hailed as being a positive gesture by the British government, together with charity organisations and various faith groups. Debt relief, alteration to the rules regulating trade with the North and increasing the levels of developmental aid have been pointed out as being crucial to fulfilling the intended aim of eradicating poverty. The aforementioned solutions to eradicate poverty represent a departure from past economic policy, which may be hailed as a major break through by advocates but a deeper insight would indicate no substantial movement away from free market idealism and private sector growth, which represent core tenets of the capitalist economic philosophy. Therefore rather than focusing upon the solutions that have been advocated a deeper issue needs to be analysed and that is whether capitalism can really make poverty history when it has failed to elevate poverty in Africa for decades despite billions in financial aid? Can globalisation powered by the ideals of capitalism really lift millions out of poverty when the rate of inequality between the rich and poor is increasing? To what extent is the West willing to give economic independence to African nations in order to determine their own economic and political future?

Such questions need to be explored in order to determine the feasibility of capitalism in alleviating poverty and to allow the exploration of alternative ideological paradigms to that of capitalism. The Islamic economic system represents this alternative ideological paradigm, which this article delves in to in further detail, discussing how this particular system can ‘Make Poverty History’

www.newcivilisation.com

-- June 16, 2005 10:48 AM ∞

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