nach oben

Erschienen in:

2019 | OriginalPaper | Buchkapitel

2. Critical Reflections on Globalisation and Development and Challenges Ahead

verfasst von : Machiko Nissanke, José Antonio Ocampo

Erschienen in: The Palgrave Handbook of Development Economics

Verlag: Springer International Publishing

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This second overall chapter presents collective critical reflections on how globalisation has affected the course of economic development over the last four decades. We argue that despite its potential in accelerating economic growth and development through the spread and transfer of technology and the transmission of knowledge and information, globalisation as proceeded to date—corporation-led and finance-centred and largely market-driven integration process—has exposed itself to the reality that the process is unsustainable socially, economically and politically as well as ecologically, with discontents growing all around. There is urgency for us all to engage with the pivotal question how to make globalisation work for inclusive and sustainable development, and to arrest the tide of the political fallouts with grave consequences for the global community. Against this background, drawing on many insightful analyses provided by the chapter contributors to the Handbook, this chapter, as our collective narratives of the effects of globalisation on development, is organised under two themes: (i) the diverse development experiences of countries in the South under globalisation; and (ii) the growing inequality and its implications. We then proceed to discuss challenges facing us for finding a way to change the course and nature of globalisation, and indicate several pathways for making globalisation work for sustainable and inclusive development.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Vorheriges Kapitel Introduction to the Handbook

Nächstes Kapitel The History and Evolution of the Development Doctrine, 1950–2017

See also Williamson (2002), among others, for winners and losers from globalisation in modern history.

Reported in Fig. 3.1 in UNDP (2013).

Given this, the survey carried out for the World Economic Forum 2014 ranked widening income disparities as one of the greatest risks the global community faces today (World Economic Forum, 2013). The growing within-country inequality has been a main thematic topic selected to address in many reports by multilateral institutions over recent years (UNCTAD 2012; UNDP 2013; OECD 2011, 2014; IMF 2017 and others).

Naturally, countries within each of the developing regions are heterogeneous in their globalisation experiences. While acknowledging country-specific experiences, the discussions herein reflect our attempt to discern overall patterns of the different regions’ experiences.

See, for example, Chap. 14 for the detailed comparative analysis of effects of alternative financial policy regimes on economic growth between the Asian and Latin American regions.

See Kojima (2000) for detailed presentation of this thesis. Lin (2011) also provides a description of the Flying-Geese pattern of economic development in the Asia-Pacific Region.

Baldwin (2012) attributes Asia’s success story under the ‘globalisation’s second unbundling’ to Asia’s ability to participate actively in international supply chains that have emerged from the huge reduction in the transport cost and transmission/communication cost in the late 1980s and the early 1990s. The ‘Factory Asia’ thus emerged along with the ‘Factory Europe’ and the ‘Factory of North America’.

Latin America had experienced a successful industrialisation and structural diversification process, which had started during the 1930s and was very dynamic in the first decades of the post-WWII post-war period. It peaked in the second half of the 1970s and was followed by deindustrialisation and stronger dependence on primary exports, with some exceptions (Mexico being the most important case, as it became an important manufacturing exporter). See Bértola and Ocampo (2012), chapters 4 and 5.

See Nissanke and Thorbecke (2008, 2010) for a summary of the findings of case studies of the impact of globalisation on the poor in Asia.

See Thorbecke and Nissanke (2009) for more discussions on the effects on globalisation on poverty reduction in the Latin American region. The better record in poverty reduction in the 2000s in Latin America can be at least partially attributable to institutional innovations for social protection such as the rapid expansion in education coverage and some universal health and pension systems mixed with conditional cash transfer programs (CCTs).

Ocampo and Parra (2006: tables 2 and 3, and figure 9).

A number of earlier studies (World Bank 1993; Ahuja et al. 1997; Campos and Root 1996) described the growth pattern of East Asian countries in the 1960s and 1970s as highly inclusive and viewed as a model of ‘shared growth’. As discussed later, however, such a condition has been steadily and considerably eroded as hyper-globalisation proceeded.

This is based on the survey results of income/consumption expenditures per household, expressed in 2011 Purchasing Power Parity (PPP) exchange rates.

On the other hand, referring to this decline, Bourguignon (2015) presents a longer historical series of global inequality and notes that from 1820 to the 1990s global inequality steadily rose, but it started declining gradually in the first decade of the twenty-first century, which is also to the narrowing ‘between-country’ inequality, reflecting the rise of average income of emerging economies.

Credit Suisse, Global Wealth Report 2018 and World Inequality Lab (2018).

Although the technological changes and the globalisation effects are often entered as a separate factor in accounting for the falling labour income shares in a number of empirical studies (e.g., IMF 2017), these two are closely bundled together from a perspective of developing countries, where skill-biased technological changes are embodied in goods and services imported from the rest of the world. Hence, technical changes can be seen as one element of globalisation effects.

See Basu (2003).

During the previous globalisation, there were, however, constraints on the movement of Asian, particularly Chinese and Indian labour, to territories that were considered to be destined for the white population, with notable cases being Australian and US restrictions in this regard. So, Asian migrants largely moved around the tropics.

Primary income distribution is the distribution of household incomes consisting of different factor incomes before tax and subsidies, whilst secondary income distribution is the distribution of household incomes after deduction of taxes and inclusion of transfer payments. Tertiary income distribution is the distribution of household incomes when imputed benefits from public expenditures are further taken into account.

It is also interesting to detect, in this thesis, a potential discord between economic liberalism in its neo-liberal genre and liberal democracies as political institutions, although these two are often presented together to the rest of the world signifying the virtue of the Western institutions over the others.

See Rodrik (2011: 201–202), where lists of these policy packages associated with, and institutional requirements for, hyper-globalisation are presented.

European Union (EU) is a notable exception to this, as it tries to organise a democratic legitimacy at the regional level, while preserving nation states’ sovereignty. However, the recent crises within the EU plentifully demonstrate that it is not easy to guarantee the success and the sustainability of their political project.

This is discussed by one of us in Chap. 15 of this Handbook in the context of ensuring aid effectiveness and debt sustainability.

See Ocampo (2016) for more detailed analyses on these issues. He underscores how the ‘sovereignty paradox’ applied in the GPG provision presented in Kaul (2013) is related to Rodrik’s ‘globalisation paradox’ discussed earlier.

See Nayyar (2002), Stiglitz (2006) and Ocampo (2017).

Ocampo (2016, 2017) contains detailed discussions on how to build a better global governance structure.

Abramovitz, M. (1986). Catching Up, Forging Ahead, and Falling Behind. Journal of Economic History, 46, 385–406.CrossRef

Ahuja, V., Bidani, B., Ferreira, F., & Walton, M. (1997). Everyone’s miracle? Revisiting poverty and inequality in East Asia. Washington, DC: World Bank.CrossRef

Ali, I., & Zhang, J. (2007, July). Inclusive growth toward a prosperous Asia: Policy implications (ERD working paper 97). Manila: Asian Development Bank.

Asian Development Bank. (2004). Key indicators of developing Asian and Pacific countries. Manila: ADB.

Asian Development Bank. (2007). Key indicators of developing Asian and Pacific countries. Manila: ADB.

Atkinson, A. B. (2015). Inequality, what can be done? Cambridge, MA: Harvard University Press.CrossRef

Baldwin, R. (2012). Global supply chains: Why they emerged, why they matter, and where they are going (CTEI paper). Geneva: The Graduate Institute.

Baldwin, R. E., & Martin, P. (1999). Two waves of globalisation: Superficial similarities, fundamental differences. In H. Siebert (Ed.), Globalization and labor. Kiel: Institute fur Weltwirschaft an der Universitat Kiel.

Basu, K. (2003). Globalization and marginalization: Reexamination of development policy (BREAD working paper 026). Cambridge, MA: Bureau for Research in Economic Analysis of Development.

Bértola, L., & Ocampo, J. A. (2012). The economic development of Latin America since independence. Oxford: Oxford University Press.CrossRef

Birdsall, N. (2006). The world is not flat: Inequality and injustice in our global economy (WIDER annual lecture 2005). Helsinki: UNU-WIDER.

Bourguignon, F. (2015). The globalization of inequality. Princeton: Princeton University Press.CrossRef

Campos, E., & Root, H. L. (1996). The key to the East Asian miracle. Washington, DC: Brookings Institution.

Credit Suisse. (2018). Global wealth report 2018. October 2018, Research Department, Credit Suiss Investment Banking, Zürich, Switzerland.

de Vries, G., Timmer, M., & de Vries, K. (2015). Structural transformation in Africa: Static gains, dynamic losses. The Journal of Development Studies, 51(6), 674–688.CrossRef

Hirschman, A. O. (1981). The rise and decline of development economics. In A. O. Hirschman (Ed.), Essays in trespassing: Economics to politics and beyond. Cambridge, UK: Cambridge University Press.

IMF. (2017, April). World economic outlook. Washington, DC: International Monetary Fund.

Kaul, I. (2013). Chapter 2: Meeting global challenges: Assessing governance readiness. In Hertie School of Governance, The Governance report (pp. 33–58). Oxford: Oxford University Press.

Kojima, K. (2000). The “Flying Geese” model of Asian economic development: Origin, theoretical extensions, and regional policy implications. Journal of Asian Economics, 11(4), 375–401.CrossRef

Kozul-Wright, R., & Rayment, P. (2007). The resistible rise of market fundamentalism: Rethinking development policy in an unbalanced world. London/New York: Zed Books.

Krugman, P., & Venables, A. J. (1995). Globalization and the inequality of nations. Quarterly Journal of Economics, 110(4), 857–880.CrossRef

Lin, J. Y. (2011, May 4). From flying Geese to leading Dragons: New opportunities and strategies for structural transformation in developing countries. Wider Lecture, delivered in Maputo, Mozambique.

McMillan, M., & Rodrik, D. (2011). Globalization, structural change and productivity growth. In M. Bacchetta & M. Jansen (Eds.), Making globalization socially sustainable (pp. 49–84). Geneva: International Labour Organization.CrossRef

Milanovic B. (2012, November). Global income inequality by numbers: In history and now—overview (World Bank Policy Research working paper 6259).

Milanovic, B. (2016). Global inequality, a new approach for the age of globalization. Cambridge, MA: Belknap Press.CrossRef

Nayyar, D. (2002). Governing globalisation: Issues and institutions. Oxford/New York: Oxford University Press for UNU/WIDER.CrossRef

Nissanke, M. (2015). Linking economic growth to poverty reduction under globalisation: A case for harnessing globalisation for the poor in Sub-Saharan Africa. In A. McKay & E. Thorbecke (Eds.), Chapter 8: Linking growth to poverty reduction (pp. 227–258). Oxford: Oxford University Press.

Nissanke, M., & Thorbecke, E. (2006a). Overview. In M. Nissanke & E. Thorbecke (Eds.), The impact of globalization on the world’s poor: The transmission mechanisms. Basingstoke, Hampshire: Palgrave Macmillan.

Nissanke, M., & Thorbecke, E. (2006b). Channels and policy debate in the globalization-inequality-poverty nexus. In M. Nissanke & E. Thorbecke (Eds.), The impact of globalization on the world’s poor: The transmission mechanisms, Palgrave Macmillan, Basingstoke, Hampshire. Also appeared in World Development, vol. 34, no. 8. pp. 1338–1360.

Nissanke, M., & Thorbecke, E. (2008). Chapter 1: Globalization and the poor in Asia: Can shared growth be sustained? Basingstoke: Palgrave Macmillan for UNU-WIDER.

Nissanke, M., & Thorbecke, E. (2010). The poor under globalization in Asia, Africa and Latin America. Oxford/New York: Oxford University Press for UNU-WIDER.CrossRef

Ocampo, J. A. (2016). Chapter 1: Global economic and social governance and the United Nations system. In J. A. Ocampo (Ed.), Global governance and development (pp. 3–31). New York: Oxford University Press.CrossRef

Ocampo, J. A. (2017). Resetting the international monetary (non)system. Oxford/Helsinki: Oxford University Press and UNU-WIDER.CrossRef

Ocampo, J. A., & Parra, M. A. (2006). The dual divergence: Growth successes and collapses in the developing world since 1980 (Working paper 24). New York: UN-DESA.

Ocampo, J. A., Rada, C., & Taylor, L. (2009). Growth and policy in developing countries: A structuralist approach. New York: Columbia University Press.CrossRef

OECD. (2011). Divided we stand: Why inequality keeps rising. Paris: Ebooks.CrossRef

OECD. (2014, December). Does income inequality hurt economic growth? OECD Directorate for Employment, Labour and Social Affairs.

Piketty, T. (2014). Capital in the twenty-first century. Cambridge: Harvard University Press.CrossRef

Rodrik, D. (2011). The globalization paradox: Why global markets, states, and democracy can’t coexist. Oxford/New York: Oxford University Press.

Sachs, J. D., & Warner, A. (1995). Economic reform and the process of global integration (Brookings papers on economic activity 1). Washington, DC: Brookings Institution.

Stiglitz, J. E. (2006). Making globalization work. London: Penguin Books.

Stiglitz, J. E. (2012). The price of inequality. London/New York: Penguin Books.

Stiglitz, J. E., & Greenwald, B. C. (2014). Creating a learning society. New York: Columbia University Press.CrossRef

Storm, S. (2015). Structural change. Development and Change, 46(4), 666–699.CrossRef

Thorbecke, E., & Nissanke, M. (2009). The impact of globalization on the poor in Latin America. Economia, 9(1), 153–186.

UNCTAD. (2012). Trade and development report 2012. Geneva.

UNDP. (2013). Humanity divided: Confronting inequality in developing countries. New York: UNDP.

UNIDO. (2017). Industrial development report 2018. Demand for manufacturing: Driving inclusive and sustainable industrial development. Vienna: UNIDO.

Williamson, J. G. (2002). Winners and losers over two centuries of globalization (WIDER annual lecture No.6). Helsinki: UNU-WIDER.

World Bank. (1993). The east Asian miracle: Economic growth and public policy. New York: Oxford University Press.

World Bank. (2016). “Taking on inequality”, poverty and shard prosperity 2018. Washington, DC.

World Bank. (2018). ‘Piecing together poverty puzzle’, poverty and shard prosperity 2018. Washington, DC.

World Economic Forum. (2013). Outlook on the global agenda 2014. Geneva. http://www3.weforum.org/docs/WEF_GAC_GlobalAgendaOutlook_2014.pdf

World Inequality Lab. (2018). World inequality report 2018. World Inequality Lab, Paris School of Economics, Paris.

Titel: Critical Reflections on Globalisation and Development and Challenges Ahead
verfasst von: Machiko Nissanke
José Antonio Ocampo
Verlag: Springer International Publishing
Buch: The Palgrave Handbook of Development Economics
Print ISBN: 978-3-030-13999-5

Electronic ISBN: 978-3-030-14000-7

Copyright-Jahr: 2019
DOI: https://doi.org/10.1007/978-3-030-14000-7_2

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Premium Partner