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Pro-Poor Macroeconomics pp 27–48Cite as

Palgrave Macmillan

Pro-Poor Fiscal Policy in the Globalized Economy

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Part of the book series: Social Policy in a Development Context ((SPDC))

Abstract

The current phase of globalization has been characterized by increasing frequency of economic crises/downturns for developing countries. Several reasons can be advanced for this, including severe drought in agriculture-dependent economies, such as Zimbabwe, or a secular decline in the terms of trade for primary exporting countries, such as Zambia. However, the most important reason has been the inexorable march of the developing world to currency boards or dollarization — with consequent surrender of any semblance of an independent monetary policy — or, more likely, to flexible exchange rates preceded by long maintenance of unsustainable pegs.

I am grateful to Giovanni Andrea Cornia for helpful comments on earlier versions of this chapter and to Anurag Sharma for research assistance. Helpful comments from the Milan conference participants are also acknowledged. All opinions and any errors are mine alone.

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Authors
  1. Raghbendra Jha
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Editors and Affiliations

  1. University of Florence, Italy

    Giovanni Andrea Cornia (Professor of Economics) (Professor of Economics)

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© 2006 Palgrave Macmillan, a division of Macmillan Publishers Limited

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Jha, R. (2006). Pro-Poor Fiscal Policy in the Globalized Economy. In: Cornia, G.A. (eds) Pro-Poor Macroeconomics. Social Policy in a Development Context. Palgrave Macmillan, London. https://doi.org/10.1057/9780230627901_2

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