Abstract
Globalization is a process. It is difficult to pinpoint a particular event or year as a starting point. Various aspects of it affect countries and communities at different speeds and at different times. Earlier chapters have noted the increasing integration of developing countries in the world trading system and the large private and public capital flows that permitted financing of the huge deficits resulting from the first oil crisis in the 1970s. By 1990 globalization in various forms was happening and spreading all over the world. Its impact on various countries and, within countries, on various income groups was diverse. This chapter will review the experience with growth and poverty alleviation of the main regional groupings of developing coutnries in the 1990s. This is followed by a discussion of the results of a number of studies which have attempted to link globalization with particular outcomes in terms of growth and poverty alleviation. The final two sections examine the impact of two key globalizing policies on developing countries poverty alleviation: the policies on international trade and capital flows, including both official assistance and private capital. The latter is important to review as it has played a far more greater role in development than in the 1990s and in the years since.
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Notes
- 1.
Mundell (2000) argues that the 1970s saw the beginning of a new international financial system resulting from the need to finance the oil price-driven deficits.
- 2.
The full list includes Mexico , Venezuela , Turkey , Poland and Australia—the latter three of which can hardly be called ‘developing’ or part of the ‘South’.
- 3.
China has often maintained an exchange rate policy which many observers have felt resulted in significant undervaluation in order to maintain export competitiveness.
- 4.
The countries in this region for which these data are reported included several countries, such as Russia and Ukraine which in this volume have been included in the ‘developed country’ grouping.
- 5.
Chile, Hong Kong , Korea , Singapore and Taiwan were excluded from the ‘globalizing’ group for unstated reasons. One wonders whether their inclusion in the analysis would have changed the results.
- 6.
In a number of World Bank-supported trade reforms, experience with revenue generation was mixed. In three of five countries examined, the reforms resulted in increased revenues. In the two cases where they did not, the main reason appears to have been that tariffs were lowered; but when NTBs were also removed, there was no compensatory increase in tariffs, nor an enhanced effort of tariff collection (Greenway and Milner 1991).
- 7.
At about the same time, the foreign exchange gap rationale for World Bank financing had come under internal questioning. Latin American experience in the 1980s and more recent experience in the former Soviet U nion countries suggested that the problems developing countries were facing stemmed primarily from budget deficits reflecting a domestic savings constraint. This resulted in a long but unresolved debate over how to justify adjustment lending which did not materially affect the lending pro gram (World Bank 1996a).
- 8.
The IDTs were also referred by some as the International Development Goals (IDGs), see McArthur (2014).
- 9.
Communication from Michael Crosswell, former Chief Economist of US AID/PPC.
- 10.
Herfkens , S hort and Johnson knew each other already, but the addition of Wieczorek-Zeul doubled their leverage. Herfkens knew Wieczor ek-Zeul from the 1980s when they both were parliamentarians. When she heard of the new German Minister’s appointment, she cleared her schedule, contacted Wiecz orek-Zeul and went to Bonn to brief her and discuss how they could work together.
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Michalopoulos, C. (2017). The Many Faces of Globalization. In: Aid, Trade and Development. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-65861-2_7
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