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Globalization, Poverty and Inequality: What Is the Relationship? What Can Be Done?

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  • Basu, Kaushik

    (Cornell U)

Abstract

The paper studies the relation between globalization, inequality and marginalization, within and across nations. It reviews the existing evidence on globalization and global inequality and argues, using a simple theoretical model, that the two are inter-connected. It discusses alternative policies to counter extreme poverty and inequality. The paper takes the view that curbing these, even within one country, requires global, cross-country policies that we do not currently have, and advocates the setting up of an international initiative to coordinate such policies.

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Bibliographic Info

Paper provided by Cornell University, Center for Analytic Economics in its series Working Papers with number 05-13.

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Date of creation: Aug 2005
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Handle: RePEc:ecl:corcae:05-13

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References

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  1. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
  2. Kaushik Basu, 2006. "Gender and Say: a Model of Household Behaviour with Endogenously Determined Balance of Power," Economic Journal, Royal Economic Society, vol. 116(511), pages 558-580, 04.
  3. Shaohua Chen & Ravallion, Martin, 2000. "How did the world's poorest fare in the 1990s ?," Policy Research Working Paper Series 2409, The World Bank.
  4. Milanovic, Branko, 1999. "True world income distribution, 1988 and 1993 - first calculations, based on household surveys alone," Policy Research Working Paper Series 2244, The World Bank.
  5. Branko milanovic, 2003. "True world income distribution, 1988 and 1993: First calculation based on household surveys alo," HEW 0305002, EconWPA.
  6. François Bourguignon & Christian Morrisson, 2002. "Inequality Among World Citizens: 1820-1992," American Economic Review, American Economic Association, vol. 92(4), pages 727-744, September.
  7. Stephan Klasen, 2004. "In Search of the Holy Grail: How to Achieve Pro-Poor Growth?," Macroeconomics 0401005, EconWPA.
  8. Dagdeviren, Hulya & van der Hoeven, Rolph & Weeks, John, 2002. "Redistribution Does Matter Growth and Redistribution for Poverty Reduction," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  9. Abhijit Banerjee & Thomas Piketty, 2005. "Top Indian Incomes, 1922-2000," World Bank Economic Review, World Bank Group, vol. 19(1), pages 1-20.
  10. Jeffrey G. Williamson, 2002. "Winners and Losers Over Two Centuries of Globalization," NBER Working Papers 9161, National Bureau of Economic Research, Inc.
  11. Banerjee, Abhijit & Piketty, Thomas, 2002. "Top Indian Incomes, 1956-2000," CEPR Discussion Papers 4137, C.E.P.R. Discussion Papers.
  12. Chau, Nancy H. & Kanbur, Ravi, 2003. "On Footloose Industries, Asymmetric Information,And Wage Bargaining," Working Papers 127254, Cornell University, Department of Applied Economics and Management.
  13. Wade, Robert Hunter, 2004. "Is Globalization Reducing Poverty and Inequality?," World Development, Elsevier, vol. 32(4), pages 567-589, April.
  14. Shorrocks, Anthony & van der Hoeven, Rolph (ed.), 2004. "Growth, Inequality, and Poverty: Prospects for Pro-poor Economic Development," OUP Catalogue, Oxford University Press, number 9780199268658, September.
  15. Birdsall, Nancy & Ross, David & Sabot, Richard, 1995. "Inequality and Growth Reconsidered: Lessons from East Asia," World Bank Economic Review, World Bank Group, vol. 9(3), pages 477-508, September.
  16. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute for the Study of Labor (IZA).
  17. Sen, Amartya K, 1976. "Real National Income," Review of Economic Studies, Wiley Blackwell, vol. 43(1), pages 19-39, February.
  18. Sanjay G. Reddy & Camelia Minoiu, 2005. "Has world poverty really fallen during the 1990s?," Development and Comp Systems 0509005, EconWPA.
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Citations

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Cited by:
  1. Basu, Kaushik, 2006. "Participatory Equity, Identity, and Productivity: Policy Implications for Promoting Development," Working Papers 06-06, Cornell University, Center for Analytic Economics.
  2. Broll, Udo & Kemnitz, Alexander & Mukherjee, Vivekananda, 2009. "Globalization and a welfare program for the marginalized," Dresden Discussion Paper Series in Economics 05/09, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
  3. Goto, Hideaki, 2008. "Labor Market Competitiveness and Poverty," Working Papers 51159, Cornell University, Department of Applied Economics and Management.
  4. Jinhwan Oh, 2008. "Concentration, congestion, and the dynamics: spatial re-modeling of the Murphy, Shleifer, and Vishny model," Letters in Spatial and Resource Sciences, Springer, vol. 1(2), pages 77-97, December.
  5. Yamin, Mo & Sinkovics, Rudolf R., 2009. "Infrastructure or foreign direct investment?: An examination of the implications of MNE strategy for economic development," Journal of World Business, Elsevier, vol. 44(2), pages 144-157, April.
  6. Pete Tashman & Valentina Marano, 2009. "Dynamic Capabilities and Base of the Pyramid Business Strategies," Journal of Business Ethics, Springer, vol. 89(4), pages 495-514, March.
  7. Béné, Christophe & Lawton, Rebecca & Allison, Edward H., 2010. ""Trade Matters in the Fight Against Poverty": Narratives, Perceptions, and (Lack of) Evidence in the Case of Fish Trade in Africa," World Development, Elsevier, vol. 38(7), pages 933-954, July.

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