Development in the Time of Globalization
The paper examines grounds on which a `second opinion’ to the Washington Consensus may be constructed using data for a sample of 123 rich and poor nations for the period from 1960 to 1995. The historical record makes abundantly clear that international inequality has increased not only over the long haul of the past two centuries but also in recent decades. Unequal development derives mainly from economic and political-economic forces internal to nations. Unregulated global market forces mostly follow this process rather than countering it. At the same time, the fragile internal development process is vulnerable to the disruptive forces of unrestricted openness. To be sure, access to global markets can be a powerful factor in development. But development success has hinged on selective and phased integration with world markets. This understanding clearly goes against the prevailing view that the growth benefits from globalization far outweigh the costs and that the main task for developing countries is to eliminate all impediments in the way of integrating their domestic economies with global trade and financial flows. It is not only economic growth as it relates to globalization that is at issue. The historical record also shows that the wealth of nations alone fails to account for variations in the levels of national poverty and inequality. Hence, we must also be concerned about whether increasing globalization restructures incentives in a direction that is conducive to reducing inequality and poverty. Apart from the purely economic mechanisms, this concern must extend also to the capacities for public action that globalization might weaken. The paper is animated by the belief that given the continuing primacy of the nation state, a modicum of national policy autonomy is vital to a politically sustainable economy, particularly in redressing endemic problems of poverty and inequality.
|Date of creation:||1998|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (413) 545-6355
Fax: (413) 545-2921
Web page: http://www.peri.umass.edu/Email:
More information through EDIRC
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.:
- Jeffrey Sachs & Andrew Warner, 1995.
"Economic Reform and the Progress of Global Integration,"
Harvard Institute of Economic Research Working Papers
1733, Harvard - Institute of Economic Research.
- Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
- Bhagwati, Jagdish N, 1984. "Why Are Services Cheaper in the Poor Countries?," Economic Journal, Royal Economic Society, vol. 94(374), pages 279-86, June.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Clark, Gregory, 1987. "Why Isn't the Whole World Developed? Lessons from the Cotton Mills," The Journal of Economic History, Cambridge University Press, vol. 47(01), pages 141-173, March.
- Bernhard Fischer & Helmut Reisen, 1992. "Towards Capital Account Convertibility," OECD Development Centre Policy Briefs 4, OECD Publishing.
- Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
- Hamilton, C.B. & Winters, L.A., 1992. "Opening Up International Trade in Eastern Europe," Papers 511, Stockholm - International Economic Studies.
- Rao, J. Mohan, 1989. "Getting agricultural prices right," Food Policy, Elsevier, vol. 14(1), pages 28-42, February.
- Baumol, William J. & Nelson, Richard R. & Wolff, Edward N. (ed.), 1994. "Convergence of Productivity: Cross-National Studies and Historical Evidence," OUP Catalogue, Oxford University Press, number 9780195083903, March.
- N. Gregory Mankiw & David Romer & David N. Weil, 1990.
"A Contribution to the Empirics of Economic Growth,"
NBER Working Papers
3541, National Bureau of Economic Research, Inc.
- Syrquin, Moshe, 1988. "Patterns of structural change," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 7, pages 203-273 Elsevier.
- Palma, Gabriel, 1978. "Dependency: A formal theory of underdevelopment or a methodology for the analysis of concrete situations of underdevelopment?," World Development, Elsevier, vol. 6(7-8), pages 881-924.
- Dragoslav Avramovic, 1992. "Developing Countries in the International Economic System: Their Problem and Prospects in the Markets for Finance, Commodities, Manufactures and Services," Human Development Occasional Papers (1992-2007) HDOCPA-1992-03, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
- Sen, Amartya, 1983. "Development: Which Way Now?," Economic Journal, Royal Economic Society, vol. 93(372), pages 742-62, December.
- Nuxoll, Daniel A, 1994. "Differences in Relative Prices and International Differences in Growth Rates," American Economic Review, American Economic Association, vol. 84(5), pages 1423-36, December.
- Taylor, Lance & Arida, Persio, 1988. "Long-run income distribution and growth," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 6, pages 161-194 Elsevier.
- Paul R. Krugman, 1985. "Increasing Returns and the Theory of International Trade," NBER Working Papers 1752, National Bureau of Economic Research, Inc.
- Ocampo, JoseAntonio, 1986. "New developments in trade theory and LDCs," Journal of Development Economics, Elsevier, vol. 22(1), pages 129-170, June.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Baumol, William J & Wolff, Edward N, 1988. "Productivity Growth, Convergence, and Welfare: Reply," American Economic Review, American Economic Association, vol. 78(5), pages 1155-59, December.
When requesting a correction, please mention this item's handle: RePEc:uma:periwp:wp1. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Judy Fogg)
If references are entirely missing, you can add them using this form.