Channels and Policy Debate in the Globalization-Inequality-Poverty Nexus

The process of globalization has led to a much greater integration of the world economy. The flows of trade, capital, labour, technology and information across national borders have accelerated since the 1980s and created an environment conducive to faster economic growth and transmission of knowledge. It is evident that the forces of globalization provide a strong potential for a major reduction in poverty in the developing world. However, for a number of reasons brought out in this chapter, the positive impact of globalization on poverty alleviation worldwide has not been as substantial as one might have expected. In this chapter we explore structural factors and policies within the world economy and national economies that impede the full transmission of the benefits of the various channels of globalization to poverty reduction. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.