Globalization and Poverty: North-South Connections

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Presentation to the Workshop on Global Connections: UK and Global Poverty Solutions, Joseph Rowntree Foundation,
London
24th November 2010
Professor Tony McGrew, Strathclyde University

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Globalization and Poverty: North-South Connections

  1. 1. Globalization and Poverty : North-South Connections Presentation to the Workshop on Global Connections : UK and Global Poverty Solutions Joseph Rowntree Foundation London 24 th November 2010 Professor Tony McGrew Strathclyde University
  2. 2. Overview <ul><li>Globalization and Poverty: Controversies </li></ul><ul><li>Globalization and Poverty: Mechanisms </li></ul><ul><li>Globalization and Poverty: Challenges </li></ul>
  3. 3. Three ways of thinking about globalization.. <ul><li>Process – objective trends/tendencies of growing worldwide interconnection and interdependence </li></ul><ul><li>Project - political,economic,organizational strategy or programme- e.g. China’s development strategy globalizing its economy; organized crime globalizing its activities; Multinationals and offshoring </li></ul><ul><li>Paradigm - collective way of thinking about ,talking about, simplifying ,explaining the world </li></ul>
  4. 4. Globalization <ul><li>implies closer economic integration through trade,finance,and production linkages; emergence of a single planetary economy </li></ul><ul><li>What’s new ? :form, scale, speed, intensity of global economic integration </li></ul>
  5. 6. Aspects of economic globalization.. <ul><li>Uneven economic integration of countries into world economy </li></ul><ul><li>Emergence of global production chains linking production sites across the globe </li></ul><ul><li>Emergence of 24hr real-time global financial markets </li></ul><ul><li>Redistributes risk, life chances, and economic well being </li></ul>
  6. 8. Controversies : the global condition <ul><li>The Great Convergence : globalization and ‘spreading the wealth’ ,global poverty reduction, narrowing global and international income inequality, erosion North/South divide </li></ul><ul><li>The Great Divergence : globalization and ‘concentrating the wealth’, exaggerated poverty reduction, erosion of social protection, polarization and new geography of inequality </li></ul>
  7. 10. Controversies : North-South connections <ul><li>Both accounts highlight significance of globalization : different conclusions but predicated on causal connections </li></ul><ul><li>Different contexts : scale, severity and experience of poverty ,institutional capacity to address poverty </li></ul><ul><li>Complexity : relative and differential impacts of globalization (wage inequality -offshoring vs. technological change; energy/food price volatility) </li></ul>
  8. 12. Mechanisms of connection
  9. 13. Challenges <ul><li>Connection as threat : discourse of globalization as economic threat ; dangers of protectionist or displacement policy responses e.g. migration </li></ul><ul><li>Governance : poverty reduction requires collaborative global and national/local responses but significant barriers e.g. MDGs </li></ul><ul><li>Knowledge : mapping and understanding global poverty connections(significance/limits) and the experience of poverty/inequality under conditions of globalization </li></ul>

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