 |
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
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.
Global inequality research---cause for optimism
A new study finds that the benefits of globalisation may have been underestimated in other studies, including that of the World Bank. It finds a convergence between countries, with economic growth higher in poor countries than rich countries in the period since 1980. It also finds that the reduction of the number in absolute poverty may have been significantly greater than that found in other studies. While caution needs to be exercised when using statistics on poverty and growth, the positive findings add weight to the mounting evidence of reduced global inequality. The report continues the use of purchasing power parity measures, based on what can be bought in local currency, rather than $US dollar exchange rates. It attributes the new findings to the compilation of a more comprehensive data set.
The study Imagine There's No Country: Poverty, Inequality and Growth in the Era of Globalisation was undertaken by Surjit Bhalla from the Institute for International Economics and is available to download from their internet site. Go to: www.iie.com
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: www.nber.org)
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 www.iea.org.uk for details)
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
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 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/
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. 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.
Report finds globalisation to be driven by investment rather than trade
Investment within transnational corporations (TNCs) continues to be the driving force of globalization (the integration of national economies)---of greater influence than international trade in goods and international trade in services outside firms. This is the finding of the World Investment Report 2002 recently released by UNCTAD which examines the quantum and nature of investment flows among countries. In particular, the report finds an increasing and dominant role for the largest US and European TNCs in the integration of the world economy, measured through volumes of international sales and employment, and a decrease of FDI flows as a result of the global slowdown in 2001. The Report also examines the contribution of intra-firm TNC investment to improving a country's export competitiveness.
The report also finds that the global slowdown led to a decrease in the value in cross-border mergers and acquisitions---suggesting that following the hectic rate of mergers and acquisitions in the 1999-2000 period, flows may have returned to more 'normal' rates. Flows toward some transitional economies increased (Mexico, China and South Africa), while the steepest decreases were mostly among developed countries, many of which had experienced record increases during the boom period (Belgium/Luxembourg, Germany, and the United States).
The United Nations Conference on Trade and Development World Investment Report is produced to promote understanding of the nature of transnational corporations and their contribution to development, creating an enhanced environment for international enterprise. It gives information on international investment, production and the expanding role of transnational corporations (TNCs) in the globalizing world. It was released in September 2002.
|
|
|
#6 Refugees? War? What about a trade issue?
Joining any old issue to their protests against the WTO shows that the protesters simply don't care [Click here]
#5 WTO Sydney - the real issues: Agriculture
Action in the Doha WTO negotiations can radically raise standards in developing countries by allowing them benefits of open markets [Click here]
#4 The environment debate in the WTO coercion or co-operation?
How the WTO deals with the environment is the most controversial issue in the Doha negotiations [Click here]
#3 WTO - Bali, Nike and what matters
Why do two or three thousand people want to protest violently against the WTO in Sydney next week? [Click here]
#2 Sydney WTO - Backgrounder
Most complaints about the WTO are baseless. In our view the facts speak for themselves [Click here]
#1 Why the WTO Matters to Developing Countries
The WTO matters to developing countries; it is time to refute the myths that it does not [Click here]
|
Support the WTO Sydney Ministerial Conference on 14 and 15 November 2002 in Sydney Australia
Home
Resource Material - get the facts:
What is the WTO? (Backgroundings on every aspect of the WTO)
Links (Other website resources on globalization)
|
|
