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By Ann Harrison

A couple of billion humans dwell in severe poverty, that's outlined by
the international financial institution as subsisting on under one buck an afternoon. In 2001, totally half
of the constructing global lived on under cash an afternoon. but poverty rates
are a lot reduce this day than 20 years in the past. within the final twenty years, the percentage
of the constructing global dwelling in severe poverty has been minimize in half.
While poverty charges have been falling, constructing international locations turned more and more integrated
into the realm buying and selling procedure. negative nations have slashed protective
tariffs and elevated their participation in international exchange. If we use the proportion of
exports in gross family product (GDP) as a degree of globalization, then
developing nations at the moment are extra globalized than high-income countries.2
Does globalization lessen poverty? Will ongoing efforts to eliminate
protection and bring up global alternate enhance the lives of the world’s terrible?

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Additional info for Globalization and Poverty (National Bureau of Economic Research Conference Report)

Example text

A critical role for complementary policies is highlighted in the country studies on Zambia, India, Colombia, Indonesia, and Poland. The poor need better education, access to infrastructure, access to credit for investing in technology improvements, and the ability to relocate out of contracting sectors into expanding ones in order to take advantage of trade reforms. Clearly, the concerns of globalization’s critics have been heard, but much remains to be done. References Agénor, Pierre-Richard. 2004.

2000. Trade policy and economic growth: A skeptic’s guide to the cross-national evidence. In NBER macroeconomics annual 2000, ed. Ben Bernanke and Kenneth Rogoff, 261–325. Cambridge: MIT Press. , and A. F. McCalla. 1999. Issues, interests and options of developing countries. Paper presented at conference on Agriculture and the New Trade Agenda in the WTO Negotiations. 1–2 October, Geneva, Switzerland. , Neil McCulloch, and Andrew McKay. 2004. Trade liberalization and poverty: The evidence so far.

In short, endogeneity plagues empirical research efforts on globalization. The result is that it is very difficult to prove in the case of an individual country exactly which factor or combination of factors was responsible for its success or lack thereof. For this reason, it is important to consider the experience of a number of countries. 8 The latter method usually involves statistical analysis based on a cross-country regression model. 8. The former method was developed and applied very successfully in two projects, one by Little, Scitovsky, and Scott (1970) at the Organization for Economic Cooperation and Development (OECD) and one led by Bhagwati and Krueger for the National Bureau of Economic Research (NBER; Bhagwati and Srinivasan 2002).

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