Summary

Research Report: Discusses globalisation as an important reason why progress has been made in reducing poverty and global inequality.

Description

Author: Centre for International Economics
with the assistance of AusAID, Department of Foreign Affairs and Trade, The
Treasury

Globalisation is an important reason why much progress has been made in
reducing poverty and global inequality over recent decades. Despite this
progress, poverty remains one of the most serious international challenges we
face. Up to 1.2 billion of the developing world's 4.8 billion people still
live in extreme poverty. But the proportion of the world population
living in poverty has been steadily declining. Most progress has taken
place in developing countries that have reformed their policies, institutions
and infrastructure to become the 'new globalisers'. Around 3 billion
people live in these countries which, spurred by their choice to open up to
trade and investment, are slowly catching up on the living standards of rich
countries.

Far more serious challenges confront the countries that have not integrated
with the global economy - countries that account for up to 2 billion people.
Often experiencing internal conflict and suffering poor governance,
anti-business policies and low participation in international trade, these
countries have not joined the process of globalisation, with the consequence of
slowly growing incomes or even declining incomes and rising poverty.

Sound policy choices are crucial if the world is to make further inroads
into poverty and inequality - choices that enable economies to take advantage
of global opportunities and national measures to mitigate inequality, supported
by well-targeted development assistance and global action to reduce trade
barriers, are the keys to accelerating progress.

Globalisation and Poverty: Turning the Corner [PDF 663KB]

Available: Electronic version only

This report was commissioned by AusAID. The findings, interpretations and conclusions expressed in the report are those of the authors and do not necessarily reflect the views of AusAID or the Australian Government.

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