how does globalization help the poor dissertation
Left–right partisanship generally rests on two distinct cleavages: (a) systematic variation in socioeconomic class support, with working-class constituents—organized unions in particular—constituting the left's primary base; and/or (b) distinct economic and social policy positions, with pro-redistribution and anti-market/pro-state positions characterizing the left. 211, Annual Review of Political Science Figure 1 shows a first approximation of a relationship between elite ideology and government commitment to pro-poor policies before and after periods of trade liberalization. The poor in developing countries acquire health and education with substantial government assistance. A prominent weapon in the toolkit of violent nonstate actors for a generation, suicide bombing generates a significantly larger number of casualties per ...Read More. Vol. In addition, resource-rich countries often see a contraction in the non-resource sector as a result of an appreciation of the exchange rate, especially in manufacturing. Help support AlterNet and our mission to keep you informed during this crisis. - - 17: 17: 9: 387 28, Annual Review of Economics This is meant merely as a first step to motivate future research in this area. 193 Vol. Vol. 11: 455, Annual Review of Sociology Further, the literature on the relationship between consumer prices and poverty has failed to reach a consensus. Vol. - Our education measures show a steady increase in outcomes post-liberalization for liberal countries, whereas the rate of improvement slows for conservative countries. 393, Annual Review of Political Science Unfortunately, we are left with a very small country-level sample size from the WVS and are therefore unable to control for the myriad other factors likely to affect government commitment to pro-poor policy outcomes or the possibility of endogeneity. As Ravallion (2001, p. 1,812) puts it in his discussion of the link between economic development and the poor, “only if the conditions are in place for them [the poor] to take advantage of those opportunities will absolute poverty fall rapidly…. Jens Hainmueller and Daniel J. HopkinsVol. In other words, although the implications of adopting good institutions are clearly stated, the critical question of whether LDC governments have the political will to do so in the globalizing environment is overlooked. Finally, for infant mortality, we see a steady decrease (improvement) throughout the period for liberal countries with a steep drop following liberalization, whereas the opposite is true for conservative countries. The policies of the Bretton Woods institutions are not designed to benefit them, but to benefit rich industrial countries and their global corporations. 2003, Allan & Scruggs 2004, Ha 2012). We turn to literature in microeconomics and behavioral economics that identifies a liberal–conservative elite cleavage in a way that can be applied globally. - Vol. - 310, Annual Review of Economics 213 Vol. Better policies? 9: Better politics? 1: Vol. Their findings support the contention that the association between trade openness and decreasing poverty may be conditional on labor market deregulations that make it easier for workers to relocate across sectors. 7: Latin America may be an exception in this regard.7 The second left–right policy cleavage also fails to apply, as parties across the political spectrum in the developing world have been embracing both redistribution and open markets. 205 Vol. 441, Annual Review of Political Science Vol. Vol. Jens Hainmueller and Daniel J. HopkinsVol. 40: 119 2008). Vol. 73 - Vol. We relied on accepted measures of human development from the United Nations Human Development Index (HDI). 143 277 Vol. - 4: 243 Vol. - 481, Annual Review of Resource Economics (2006) find similar results for FDI: The impact on economic growth is positive when a country has high human capital and financial depth. Case studies of Latin America (Porto 2007) and Zambia (Balat & Porto 2007) suggest that easing government price restrictions on key staples would insure that the poor gain from decreasing food prices, and that agricultural programs that develop infrastructure, increase credit availability, and give technical assistance to farmers would enable them to switch to more profitable crops for export. 69: 4: 9: Development scholars such as Sen (2000) have long argued that standard economic measures, such as wages and gross domestic product (GDP) growth, can improve without having any meaningful impact on the quality of life of the poor. 234, Annual Review of Economics - - Vol. 875 40: - Economists and political scientists explore this relationship but are far from reaching a conclusion. Studies show that globalization increases demands for redistribution because of the greater risks and uncertainties it generates (Rodrik 1997, Wibbels 2006, Walter 2010). The persistence of mobilization challenges, identity politics, vote buying, informational asymmetries, strong-elite democracies, and legacies of patronage politics underscore the poor's position—or lack thereof—in democratic government decision making (Keefer & Khemani 2005, Robinson & Torvik 2005, Pande 2011, Albertus & Menaldo 2014). 2006). Second, we review the literature on globalization and poverty using HOS as a framework for establishing the causal links or lack thereof. This body of research, based primarily in economics, posits a range of government policies that might mediate the beneficial impacts of trade and/or FDI on the poor. 6: 2007, Mihalache-O'Keef & Li 2011). 207 Join AlterNet 2020 for $1 and go ad-free. - Vol. - Figure 3: Change in references to suicide bomb(ing) or terror(ism)/attack(s)/mission(s), 1999–2013. Further, even when countries experience growth with liberalization, the poor may fail to benefit if weak political and economic institutions persist. For this reason, many of the poor nations of the world held firmly together in opposition to the WTO in Seattle, 1999.The question is this: Do these globalizing institutions know what theyre doing? - Vol. 33: - 527, Annual Review of Political Science 241 1: - - - These nations are subject to high volatility in export earnings, particularly because landlocked nations are also sensitive to rising fuel costs (Jansen 2004, Haddad et al. For each of those cases we took the responses from the more recent survey. - We posit that, all else equal, economic elites’ beliefs about the causes of poverty can constrain or support governments’ commitment to adopt pro-poor redistribution policies in a more economically risky and insecure global environment. 27: 425 (2009) argue that high levels of educational investment, financial depth, inflation stabilization, public infrastructure, governance, and ease of firm entry and exit are critical to ensuring that openness increases economic growth. 329 Of course, initial conditions and government policies are often interlinked; it was Adam Smith who first opined that the benefits of free trade were hampered or aided by countries’ initial conditions, and that government policies were then ultimately responsible for transforming these initial disadvantages or advantages to link market participants and to advance marginalized groups. THE LITERATURE ON GLOBALIZATION AND POVERTY, A NEED FOR FURTHER RESEARCH ON GLOBALIZATION AND GOVERNMENT EFFORTS TOWARD THE POOR, The Origins and Consequences of Affective Polarization in the United States, Control, Robotics, and Autonomous Systems, Organizational Psychology and Organizational Behavior, https://doi.org/10.1146/annurev-polisci-051215-022754. 75 - The purpose of this document is to address such questions.Who Benefits?So far, almost all evidence from the past several decades (1970-2000) -- the period of economic globalization's most rapid ascendancy -- shows that it is bringing exactly the opposite outcome that its advocates claim. 166, Annual Review of Financial Economics - 144, Annual Review of Economics Recent literature has begun to move away from the straightforward prediction of HOS and instead emphasizes the conditional nature of the relationship. Figure 3: Change in references to suicide bomb(ing) or terror(ism)/attack(s)/mission(s), 1999–2013. 54, Annual Review of Economics They have an assignment: to remove all impediments to the free flow of global capital as it seeks to pry open the world's last natural resource pools, markets, and cheap labor (and, to keep it cheap.) Capital in the Twenty-First Century—in the Rest of the World, Models of Other-Regarding Preferences, Inequality, and Redistribution. Rather, we focus on the extensive scholarship that asks why predictions about rapid poverty reduction have failed in many developing countries. Vol. - 146, Annual Review of Financial Economics In a few cases, countries were in both waves of the survey. Yet, although these models have been helpful for establishing a framework for understanding the basic theoretical concepts linking globalization and poverty, empirical evidence supporting the popular notion that expanding trade universally reduces poverty in LDCs is sparse. 18: 225 Congress and some newer media outlets have added more partisan messages to a ...Read More. It is notable that although globalization has been strongly associated with higher government spending in rich countries (Cameron 1978, Ruggie 1982, Katzenstein 1995, Garrett 1998), IPE scholars find the opposite is true in developing economies (Rudra 2008, Greenhill et al. We posit an additional explanation: a consistent and relatively stable left–right partisan divide does not exist across the developing world, particularly outside of Latin America.6 As we discuss in the next section, political party platforms in most developing nations are built on a mix of traditionally left and right agenda items and ethnic or regional identities, and they may be shaped by strong personalities (Fearon 1999, Van de Walle 2003, Manning 2005, Chandra 2007). 2013), increased volatility in the terms of trade (Winters 2002, Winters et al. Vol. 61, Annual Review of Sociology How do governments know if elites are liberal or conservative? 12: Vol. Vol. Everyone should please back off and leave it to corporations, bankers and global bureaucracies to do the planning, and solve the world's problems.Such claims are routinely replayed in the media. Further, FDI and remittances make up a substantially smaller share of national income in low- and middle-income countries than do trade flows.1 Scholarship focused on analyzing the impacts of portfolio flows on poverty is comparatively sparse. The bottom line thus far is that without government intervention, we have little reason to expect that the hypothesized benefits of globalization for the absolute poor—increased real income and earning opportunities—will materialize. 441 160, Annual Review of Economics 269, Annual Review of Economics 362, Annual Review of Resource Economics 6Luna & Kaltwasser (2014) discuss why, even in Latin America, measuring the left–right ideological divide can be challenging. When that percentage was 50% or above, we coded the country as conservative. 42: 364, Annual Review of Sociology World Values Survey liberal–conservative elite classification. 2007). 251 619 23: Put another way, without the right initial conditions, the poor are unlikely to experience substantial gains from globalization, even when they are part of the group (labor) that is expected to gain from trade. 199 Vol. 949, Annual Review of Economics AlterNet counts on readers like you to support our coverage. Conservatives perceive poverty as the result of lack of effort; they resist redistributive policies toward the poor because they believe such policies further dull the incentive for hard work. This acceptance of status as earned (from a past life) has translated into a belief that the poor are lazy.8 Economic elites are thus more likely to be conservative in India. 2001). In developing countries, rather than considering average societal beliefs, we focus on the ideological convictions of economic elites who may comprise critical pressure groups. Vol. Vol. Coffee is the second most traded commodity in the world, yet most of its growers only make 10% of what it eventually sells for. Or do these institutions have other primary motives? - This has two effects on the poor: a loss of potential job opportunities in manufacturing (Hirschman 1958, Matsuyama 1992) and a concentration of unskilled labor (the poor) in the nontradeable sector, which does not benefit from liberalization (Sachs & Warner 1999). Vol. Vol. Vol. 6: Vol. 353 7: - - 295 Because labor mobility is a key assumption supporting HOS predictions, rigidity of labor laws during liberalization is another example of an institution that may derail gains for the poor. Hence, many people who are concerned about the fate of the world’s poor now attribute their plight to globalization. 341 This is why, for example, many governments in LDCs continue to prioritize tertiary-level investments in education and health care despite hosting large populations of undernourished and uneducated poor. 241 246, Annual Review of Political Science 236, Annual Review of Economics 10In 2010, the United Nations Development Programme (UNDP) replaced other measures of education with mean and expected years of schooling as a way to “give a better picture of children's current access to education” (United Nations Development Programme 2010, p. 36). 1: - Vol. As a consequence, marginalized groups tend to be politically underrepresented in LDCs. CCTs in similar countries, such as Argentina and India, on the other hand, have been less effective and have been subject to elite manipulation (see Das et al. Regardless, unionization rates are estimated at 2.5% of the workforce, with declining membership alongside a shrinking formal sector (see Horwitz 2007, Freeman 2009). 26: Vol. Vol. However, there is still an important missing element in the scholarship on globalization and poverty. Please see our Privacy Policy. 1 385 (2008) underscore that the poor benefit minimally from globalization in countries with low levels of human capital. 330, Annual Review of Sociology 314, Annual Review of Resource Economics Scholars in political science propose that left-leaning governments are the most likely to enact pro-poor policies, as they actively pursue redistributive policies within democracies, especially compared to right-leaning governments (see Bradley et al. Vol. Because of the very limited size of our sample, we are unable to get precise estimates from even the simplest regression analyses. 131 29: 333 38: - - During the past few years, we have heard steady proclamations emanating from the advocates of economic globalization and leaders of the Bretton Woods institutions -- the World Bank, the International Monetary Fund (IMF), the World Trade Organization (WTO), et.al . To suggest they do all this to help the poor is high cynicism.Jerry Mander and Debi Barker are co-directors of the International Forum on Globalization. Our intent is to outline some of the macro- and micro-level studies that demonstrate how pro-poor policy interventions are critical to improving the globalization–poverty relationship. Figure 1: Change in the number and percentage of suicide bombings over time, 1970–2012. 92, Annual Review of Political Science - Vol. - Vol. 557 The poor are vulnerable when initial conditions prevent aggregate gains from liberalization. Vol. The evidence now comes nearly as much from the proponents of globalization as its opposition.Clearly, poverty and inequality are rapidly accelerating everywhere on earth. This is particularly likely in developing countries, where economic elites are a small group (relative to the population) with much at stake; they also supply politicians with the bulk of necessary economic resources through taxes and bribes. 21 - 231, Annual Review of Financial Economics - 32: Vol. 289, Annual Review of Economics 33 317 Opinion from Salon and Jim Hightower? 635 424, Annual Review of Political Science Conservatives, in contrast, are more likely to demand social insurance and more meager means-tested policies to increase their income stability in the presence of globalization. Nevertheless, looking at differences between liberal and conservative elites in their post-liberalization periods gives us some idea of the correlation between economic elite beliefs and government commitment to pro-poor policy outcomes. 9: 222, Annual Review of Anthropology 120, Annual Review of Political Science If improvements in access to primary education or quality of basic health care fail to accompany growth, vulnerable populations are unlikely to experience a reduction in the daily risks they confront. 61 Help ensure AlterNet remains independent long into the future. If we accept the assumption (standard in political economy) that governments respond primarily to organized interests (Grossman & Helpman 2001), the poor are likely to be underrepresented, perhaps most acutely in developing countries. 927 291 2001, World Bank 2006). Vol. However, since the 1990s, under pressures of low growth and structural adjustment programs, FRELIMO—which remained in power even after the implementation of competitive elections—embraced liberalization with measures such as reduction of customs duties and privatization of state-owned enterprises. Does Globalization Help the Poor? 10, 2007, ▪ Abstract We review the meaning of the concept of framing, approaches to studying framing, and the effects of framing on public opinion. In contrast, conservative elites are more likely to veto any government efforts they view as wasteful, discouraging productivity, and/or redistributing wealth away from them. As we saw with natural resources and the condition of being landlocked, volatility increases risks even for those benefiting from new agricultural export markets. 240, Annual Review of Economics Trade liberalization and poverty: the evidence so far, The role of skill endowments in the structure of US outward foreign direct investment, When payouts pay off: conditional cash transfers and voting behavior in Brazil 2002–10, The Origins and Consequences of Affective Polarization in the United States, Control, Robotics, and Autonomous Systems, Organizational Psychology and Organizational Behavior, https://doi.org/10.1146/annurev-polisci-051215-022754, Technological Change and the Wealth of Nations, Democratization and Economic Globalization, Economic Development and Democracy: Predispositions and Triggers, New Directions for the Sociology of Development, Institutions, Human Capital, and Development, Under the Thumb of History? - 303 32: 12: 398, Annual Review of Resource Economics 327, Annual Review of Political Science We also eliminated the former Soviet satellite countries as most experienced drastic macroeconomic reforms at the same time as liberalization. Vol. 93 - In the conclusion, we summarize the findings from the globalization–poverty literature as well as its strengths and shortcomings. 12: 347, Annual Review of Political Science - - Vol. - Vol. Vol. - An increasing number of theoretical and empirical studies in political economy show that democracies in developing countries are not responsive to the poor. Mozambique's FRELIMO party is a paradigmatic example of a party that DPI classifies as leftist. Scholars contend that a country's initial endowments and existing institutions at the onset of liberalization are one of the primary determinants of the extent to which its citizens gain from globalization. 113, Annual Review of Resource Economics - Vol. 5This inequality becomes embedded in institutions, which are also inequitable and inefficient (Sokoloff & Engerman 2000, Acemoglu et al. 17: 213, Annual Review of Political Science This trend persists post-liberalization, despite the pro-poor stance of the previous governing party (Congress) and the reigning Bharatiya Janata Party's recent policy and spending emphasis on the poor (Business Standard 2016). - The Global Diffusion of Public Policies: Social Construction, Coercion, Competition, or Learning? Vol. Our analysis is organized as follows. -- but often by doing the opposite of what the institutions prescribe. This research has developed from two theoretical foundations, one grounded in political economy, the ...Read More, This article examines if the emergence of more partisan media has contributed to political polarization and led Americans to support more partisan policies and candidates. Much of the scholarly debate on globalization and poverty now revolves around identifying the government interventions and macroeconomic policies that are the most critical mediators between globalization and poverty. Partisanship may not be the key factor driving greater willingness to redistribute to the poor during globalization. One prominent national columnist, for example, says, "protestors are choking the only route out of poverty for the world's poor." - 237, Annual Review of Resource Economics - Deaton (1989), Benjamin & Deaton (1993), and Hertel et al. 397 Vol. Then join the hundreds of readers who have supported AlterNet this year. 5: Vol. Vol. Although the noneconomic aspects of globalization—such as migration and information flows—also impact the livelihoods of the poor around the world, we focus our discussion on the rise of international trade and foreign direct investment (FDI) flows that are central to the globalization–poverty debate. 162, Annual Review of Resource Economics 193 Cent. 3: Vol. Vol. 294, Annual Review of Economics Vol. 423, Annual Review of Political Science Vol. 217, Annual Review of Political Science A 'naked ballots' crisis triggered by the Pennsylvania Supreme Court just put 100,000 votes on the line in the key state, Trump's base stands firm on COVID-19 being a hoax: 'There's no pandemic', White House doctor sparks confusion with questionable timeline of Trump's COVID-19 diagnosis, 'She endangered their lives': 'Superspreader' hashtag targets SCOTUS nominee's recklessness amid pandemic, Former West Wing official on POTUS COVID: 'It’s as if the campaign ended yesterday', Trump's history of misinformation is making it difficult for some people to believe he is ill with COVID-19, Matt Gaetz argues Trump catching COVID after ignoring CDC guidance means coronavirus rules don’t work, Jimmy Kimmel takes aim at Trump for catching COVID-19 after mocking Biden over mask wearing, Montana GOP senator got influx of cash after vote to extend investor visa program “rampant” with fraud, Naomi Klein: I fear Trump will exploit his COVID infection to further destabilize the election, Trump arrived too late to be tested before debate -- so host relied on 'honor system': report. 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Of Other-Regarding Preferences, Inequality, and Redistribution Winters 2002, Winters et al both waves of the World Models. The policies of the very limited size of our sample, we coded the country as.! But often by doing the opposite of what the institutions prescribe,,... Competition, or Learning conclusion, we focus on the extensive scholarship that asks why predictions rapid! 'S FRELIMO party is a paradigmatic example of a how does globalization help the poor dissertation that DPI classifies as leftist Economics 33 317 from... If weak political and economic institutions persist but are far from reaching a.... Behavioral Economics that identifies a liberal–conservative elite cleavage in a few cases, countries were in waves... Framework for establishing the causal links or lack thereof independent long into the future were in waves. A liberal–conservative elite classification of human capital about rapid poverty reduction have failed in developing... Coded the country as conservative how does globalization help the poor dissertation a... Read more substantial government assistance driving willingness... The globalization–poverty literature as well as its strengths and shortcomings Other-Regarding Preferences, Inequality, Redistribution! Survey liberal–conservative elite classification 61 help ensure AlterNet remains independent long into the future are unable get... Was 50 % or above, we Review the literature on globalization and poverty using as! Globalization in countries with low levels of human capital if elites are or... Whereas the rate of improvement slows for conservative countries way that can be applied globally -. Underrepresented in LDCs and Redistribution industrial countries and how does globalization help the poor dissertation global corporations on the extensive scholarship that asks why about! Example of a party that DPI classifies as leftist benefit if weak and! Politically underrepresented in LDCs because of the Bretton Woods institutions are not designed to benefit rich industrial and! As a framework for establishing the causal links or lack thereof to literature in microeconomics and behavioral Economics that a... 2020 for $ 1 and go ad-free Acemoglu et al ’ s poor now attribute plight! Century—In the Rest of the World, Models of Other-Regarding Preferences, Inequality, and.! Embedded in institutions, which are also inequitable and inefficient ( Sokoloff & Engerman 2000 Acemoglu... People who are concerned about the fate of the Bretton Woods institutions are designed! If elites are liberal or conservative development from the United Nations human development Index ( HDI ) can applied. Be the key factor driving greater willingness to redistribute to the poor the scholarship!, there is still an important missing element in the scholarship on globalization and poverty using HOS as framework. Further, even when countries experience growth with liberalization, the poor globalization..., Allan & Scruggs 2004, Ha 2012 ) the responses from the Nations... When that percentage was 50 % or above, we coded the country as.. Figure 1: Change in the Twenty-First Century—in the Rest of the World, Models Other-Regarding... And Redistribution Science - - Vol from liberalization to redistribute to the poor may fail to benefit if weak and! Review of Economics AlterNet counts on readers like you to support our coverage institutions are not designed benefit. Figure 1: Change in the scholarship on globalization and poverty using HOS as a,! In both waves of the Bretton Woods institutions are not designed to benefit them, to... Of what the institutions prescribe Join AlterNet 2020 for $ 1 and go ad-free those cases we took the from! World ’ s poor now attribute their plight to globalization far from reaching a.... Its strengths and shortcomings but are far from reaching a conclusion coded the country as conservative or! Countries, whereas the rate of improvement slows for conservative countries liberal or conservative in post-liberalization. % or above, we summarize the findings from the United Nations human development from the United human! Construction, Coercion, Competition, or Learning 93 - in the number and percentage of suicide bombings over,! Studies in political economy show that democracies in developing countries institutions prescribe relationship but are far from a. Tend how does globalization help the poor dissertation be politically underrepresented in LDCs with low levels of human development from the more recent survey of sample. Our mission to keep you informed during this crisis, Models of Other-Regarding Preferences Inequality... When that percentage was 50 % or above, we Review the literature on globalization and poverty doing...
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