Globalization, Poverty and Inequality

Globalization is characterised by persistent poverty and growing inequality. Conventional wisdom has it that this global poverty is residual – as globalization deepens, the poor will be lifted out of destitution. The policies of the World Bank, the IMF and the WTO echo this belief and push developing countries ever deeper into the global economy. Globalization, Poverty and Inequality provides an alternative viewpoint. It argues that for many – particularly for those living in Latin America, Asia and Central Europe – poverty and globalization are relational. It is the very workings of the global system which condemn many to poverty. In particular the mobility of investment, and the large pool of increasingly skilled workers in China and other parts of Asia, are driving down global wages. This poses challenges for policy makers in firms and countries throughout the world. It also challenges the very sustainability of globalisation itself. Are we about to witness the implosion of globalisation, as occurred between 1913 and 1950? Using a variety of theoretical frameworks and drawing on a vast amount of original research, this book will be an invaluable resource for all students of globalization and its effects.

List of Figures vi List of Tables x A Guide to the Reader xii Acknowledgements xiv Part 1 Setting the Scene 1 1 Global Dynamics 3 2 Globalization and Poverty 26 Part II Gaining from Globalization 53 3 Getting it Right: Generating and Appropriating Rents 55 4 Managing Innovation and Connecting to Final Markets 86 5 The Global Dispersion of Production – Three Key Sectors 122 Part III Losing from Globalization 161 6 How Does it All Add Up? Caught Between a Rock and a Hard Place 163 7 Does it All Add Up? 196 8 So What? 232 Notes 258 References 265 Index 276