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Globalisation
Mounting evidence of reductions in global income
equality and poverty
Global poverty rates
have fallen dramatically over the last 25 years according to a new
paper by Xavier Sala-i-Martin from Columbia University---from 20 to
5 per cent using the $1-a-day measure and from 44 to 18 per cent
using the $2-a-day measure. The paradoxically titled paper The
Disturbing "Rise" of Global Income Inequality also finds that
there is no evidence to be seen of rising inequalities, with
substantial reductions in across-country income disparities,
substantially driven by increase in incomes in China, and offsetting
small increases within countries. However, the report cautions that
unless Africa starts growing in the near future, income inequalities
are projected to rise. The paper can be purchased on the National
Bureau of Economic Research Website. (Go to: http://www.nber.org/)
(June 2002).
Why global
capitalism works---new book
A new book by
Johan Norberg from the Timbro Institute in Stockholm examines how
global capitalism has worked to produce benefits for society and the
swiftest reduction in hunger and poverty in human
history.
The title is In Defence of
Global Capitalism and is available in English from the Institute
of Economic Affairs, London. (See http://www.iea.org.uk/ for
details). (April 2002)
World
wealth gap narrows
A new report published
by the Australian Government shows that the global wealth gap
narrowed over the last decade. The shrinking of the gap in East
Asia, the Pacific, North Africa and the Middle East outweighs a
small widening in Latin America and the Caribbean. Countries which
opened their economies enjoyed the biggest rise in living standards.
See www.dfat.gov.au/publications/globe_poverty/index.html
This report seems to contradict the UN development report
which is regularly cited to show that the gap is widening. How
comparisons of wealth are measured is vital. With the steady
increase in value of the US dollar against other currencies in
recent years, the gap when denominated is US dollars widens rapidly.
This does not reflect the real situation. The World Bank uses
Product Pricing Parity (PPP) which assesses what can be bought in
local currency. A currency may devalue against the US dollar, but
most products inside a country are paid for by local currency. They
do not fall in price because the US dollar
appreciates.
The Australian report
follows careful analysis of PPP values and shows that the real
situation is that the wealth gap is narrowing. This tallies with
reports by the World Bank that the share of people in absolute
poverty in the world is shrinking. It reports that the number in
absolute poverty in Indonesia fell from 75 per cent of the
population in 1950 to 25 per cent in 1995. Those below the poverty
line in India fell from 57 per cent of the population in 1973 to 35
per cent in 1998. See www.worldbank.org/poverty/wdrpoverty
This link contains the 2000 World Development report which deals
with globalization and poverty. A related report by the UK
Department for International Development can be found on www.dfid.gov.uk/
Globalisation reduces poverty in developing
countries
A new research report by the
World Bank, Globalisation, Growth and Poverty: Building an
Inclusive World Economy, shows that in developing countries that
have integrated into the world economy, globalisation has helped
reduce poverty, whilst in those that have failed to do so, poverty
has increased. The study reveals that 24 developing economies that
successfully integrated into the world economy in the last 20 years
achieved higher growth in incomes, longer life expectancy and better
schooling. They enjoyed, on average, a growth rate in income of 5%
per capita compared with 2% in rich countries. Less globalised
countries such as sub-Saharan Africa and the Middle East, on
average, experienced a rise in poverty and negative growth rates.
The report puts forward a plan of action for helping all developing
countries take better advantage of the benefits of
globalisation.
Globalisation
delivers benefits to developing countries
A
new statistical study by the WTO on globalisation has found
significant economic and social benefits have accrued to developing
countries in the last decade. Major findings
include:
GDP growth in developing economies ranged from 7.5% in Asia and
the Pacific to 3 % in sub-Saharan Africa in 2000, and for the period
1999-2000 was on average 4.5%. This compares with GDP growth of 3.4
% in Europe, 1.5 % in Japan and 4.1% in the US for 2000 and average
growth for the world as a whole at 2.8% between 1999 and 2000.
In trade, while all regions reported faster than nominal trade
growth, exports and imports of developing countries expanded by more
than 20%, lifting their share in world trade in goods to its highest
level in 50 years. The least-developed countries also shared in this
trade expansion, with their GDP and trade growth exceeding the
global average, although there were divergent results by country.
Over the last 10 years, developing countries have consistently
outperformed the industrialised countries in terms of export growth
at an average of 10% compared with 5%.
There were increases in life expectancy between 1980 and 1999
for low-income countries by 6 years to 59 years. Illiteracy rates
also fell between 1990 and 1999, in low-income countries by about 7%
for adults and between 5% and 13% for youth. Child mortality rates
also fell.
Between 1990 and 2000 access to improved sanitation facilities
in low-income countries improved by 11% in rural areas and 7% for
the rural population. More than 96% of all nations have sufficient
water resources. Water accessibility has increased per person on all
continents.
The Study can be found at www.wto.org/trade_resources/statistic/stats.htm
New Guide to the Globalization debate:
www.globalisationguide.org
There is a
vast amount of material available on globalization issues. With
riots in many countries, the issue of globalization has clearly
become emotional. It can take a great deal of time to establish the
points of view and the facts of the matter. A new Website guide to
the globalization debate has been established by the Australian APEC
Centre at Monash University, Melbourne.http://www.globalisationguide.org/provides
a summary of key questions and a guide to sources with brief
descriptions of the outlook of key participants. It is a genuine
effort to be even-handed and has been commended by international
commentators for being so. | |
Events
WORLD SUMMIT ON SUSTAINABLE DEVELOPMENT
Johannesburg, South Africa, 26 August - 4
September, 2002
http://www.johannesburgsummit.org/
SPECIAL TRADE NEGOTIATION
SESSIONS
The following WTO Committees will
be meeting in 2002:
Trade and
Development:16 September, 7 & 9 October, 6 December
Trade in Services:28 - 31 October, 1
November, 9 & 11 - 13 December
Trade-Related Aspects of Intellectual Property
Rights:20 September, 28 November
Agriculture: 2 - 4, 23 - 25 & 27 September, 18 -
20 & 22 November
ARAB WORLD
COMPETITIVENESS MEETING
World Economic
Forum, Geneva, Switzerland, 8 - 9 September 2002
57TH UNITED NATIONS GENERAL ASSEMBLY
10 September 2002
NEW
PARTNERSHIP FOR AFRICA'S DEVELOPMENT (NEPAD)
United Nations, New York, 16 September
2002
EUROPEAN ECONOMIC
SUMMIT
World Economic Forum, Salzburg,
Austria, 16 - 17 September 2002
INTERNATIONAL ATOMIC ENERGY AGENCY GENERAL
CONFERENCE
Vienna, Austria, September 16 -
20 2002
NEW AGENDA FOR THE
DEVELOPMENT OF AFRICA IN THE 1990s (UN-NADAF)
United Nations, New York, 24 - 26 September 2002 and 7 - 11
October 2002
WORLD FREE TRADE
ZONES EXPO
India, 30 September to 2 October
2002
ASSEMBLIES OF THE MEMBER
STATES OF THE WIPO
World Intellectual
Property Organisation, Geneva, September 23 to October 1, 2002
http://www.wipo.int/
BIOTECHNOLOGY FOR INFECTIOUS DISEASE
OECD, Lisbon, Portugal, 6 - 8 October,
2002
IMF AND WORLD
BANK
Annual Meeting, Washington DC, 1 - 2
October, 2002
EAST ASIA ECONOMIC
SUMMIT
World Economic Forum, Kuala Lumpur,
Malaysia, 6 - 8 October, 2002
GENETIC RESOURCES FOR FOOD AND
AGRICULTURE
FAO, Rome, Italy, 14 - 18
October 2002
http://www.fao.org/
GLOBAL ENVIRONMENT FACILITY (GEF)
ASSEMBLY
Beijing, China, 16 - 18 October
2002
FRAMEWORK CONVENTION ON
CLIMATE CHANGE
UNFCCC COP 8, New Delhi,
India, October 23 - November 1 2002
unfccc.int
MICROCREDIT SUMMIT +5
RESULTS
Educational Fund, New York, 10 - 13 November, 2002
LATIN AMERICAN BUSINESS
SUMMIT
World Economic Forum, Rio de Janeiro,
Brazil, 20 - 22 November 2002
CLIMATE POLICY FOR THE LONGER TERM: FROM HERE TO
WHERE?
Royal Institute of International
Affairs, London, UK, 21 - 22 November, 2002
INDIA ECONOMIC SUMMIT
World
Economic Forum, New Delhi, India, 24 - 26 November
2002
REVIEW OF THE IMPLEMENTATION
OF THE CONVENTION TO COMBAT DESERTIFICATION
CRIC-1, 18 - 29 November, 2002
http://www.unccd.int/
BASEL CONVENTION
COP-6,
Geneva, Switzerland, 9 - 13 December, 2002
http://www.basel.int/
GLOBALISATION AND EQUITY
Global Development Network, Egypt, 19 - 21 January,
2003
http://www.gdnet.org/
WTO MINISTERIAL CONFERENCE
Cancun, Mexico, 10 - 14 September
2003
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