Linking globalisation to poverty

Is globalisation good for the poor?

By: Nissanke M and Thorbecke E
Published by: World Institute for Development Economics Research (WIDER), 2007
Via: Eldis

Globalisation is a double-edged sword, it offers new opportunities for accelerating development and poverty reduction, but also poses challenges that undermine potential gains for the poor. This Policy Brief examines various transmission mechanisms through which the process of globalisation affects different dimensions of poverty in the developing world, including the:

• globalisation–growth–inequality–poverty causal chain
• globalisation–capital and labour mobility–poverty channel
• globalisation–technology–poverty channel
• role of vulnerability, social protection, information diffusion and institutions in these chains

Authors conclude that the outcomes of globalisation are highly context-specific, dependent both on the institutional framework and government policies that mediate global processes. Policy recommendations include taking steps for upgrading towards high-value added activities.
(http://www.wider.unu.edu/publications/policy-brief/unu-wider-pb-2-2007.pdf)