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

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Author Info
Basu, Kaushik (Cornell U)

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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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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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Find related papers by JEL classification:
F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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  1. Dagdeviren, Hulya & van der Hoeven, Rolph & Weeks, John, 2002. "Redistribution Does Matter Growth and Redistribution for Poverty Reduction," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  2. Sanjay G. Reddy & Camelia Minoiu, 2005. "Has world poverty really fallen during the 1990s?," Development and Comp Systems 0509005, EconWPA. [Downloadable!]
  3. François Bourguignon & Christian Morrisson, 2002. "Inequality Among World Citizens: 1820–1992," American Economic Review, American Economic Association, vol. 92(4), pages 727-744, September. [Downloadable!]
  4. Jeffrey G. Williamson, 2002. "Winners and Losers Over Two Centuries of Globalization," NBER Working Papers 9161, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Chau, Nancy H & Kanbur, Ravi, 2003. "On Footloose Industries, Asymmetric Information and Wage Bargaining," CEPR Discussion Papers 4095, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Sen, Amartya K, 1976. "Real National Income," Review of Economic Studies, Blackwell Publishing, vol. 43(1), pages 19-39, February. [Downloadable!] (restricted)
  7. Wade, Robert Hunter, 2004. "Is Globalization Reducing Poverty and Inequality?," World Development, Elsevier, vol. 32(4), pages 567-589, April. [Downloadable!] (restricted)
  8. Branko milanovic, 2003. "True world income distribution, 1988 and 1993: First calculation based on household surveys alo," HEW 0305002, EconWPA. [Downloadable!]
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  9. Kaushik Basu, 2004. "Gender and Say A Model of Household Behavior with Endogenously-determined Balance of Power," Harvard Institute of Economic Research Working Papers 2054, Harvard - Institute of Economic Research. [Downloadable!]
    Other versions:
  10. Stephan Klasen, 2003. "In Search of The Holy Grail: How to Achieve Pro-Poor Growth ?," Ibero America Institute for Econ. Research (IAI) Discussion Papers 096, Ibero-America Institute for Economic Research. [Downloadable!]
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  11. François Bourguignon & Christian Morrisson, 2001. "Inequality among World Citizens : 1820-1992," DELTA Working Papers 2001-18, DELTA (Ecole normale supérieure).
  12. Shaohua Chen & Ravallion, Martin, 2000. "How did the world's poorest fare in the 1990s ?," Policy Research Working Paper Series 2409, The World Bank. [Downloadable!]
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  13. Birdsall, Nancy & Ross, David & Sabot, Richard, 1995. "Inequality and Growth Reconsidered: Lessons from East Asia," World Bank Economic Review, Oxford University Press, vol. 9(3), pages 477-508, September.
  14. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute for the Study of Labor (IZA). [Downloadable!]
  15. 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. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kaushik Basu, 2007. "Participatory Equity, Identity, and Productivity Policy Implications for Promoting Development," Working Papers id:1122, esocialsciences.com. [Downloadable!]
    Other versions:
  2. Goto, Hideaki, 2008. "Labor Market Competitiveness and Poverty," Working Papers 51159, Cornell University, Department of Applied Economics and Management. [Downloadable!]
  3. Nissanke, Machiko & Thorbecke, Erik, 2006. "A Quest for Pro-Poor Globalization," Working Papers RP2006/46, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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