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41. Globalization and the Great Divergence: Terms of Trade Booms and Volatility in the Poor Periphery 1782-1913

Author:
Jeffrey G. Williamson
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
W. Arthur Lewis argued that a new international economic order emerged between 1870 and 1913, and that global terms of trade forces produced rising primary product specialization and de-industrialization in the poor periphery. More recently, modern economists argue that volatility reduces growth in the poor periphery. This paper assess these de-industrialization and volatility forces between 1782 and 1913 during the Great Divergence. First, it argues that the new economic order had been firmly established by 1870, and that the transition took place in the century before, not after. Second, based on econometric evidence from 1870-1939, we know that while a terms of trade improvement raised long run growth in the rich core, it did not do so in the poor periphery. Given that the secular terms of trade boom in the poor periphery was much bigger over the century before 1870 than after, it seems plausible to infer that it might help explain the great 19th century divergence between core and periphery. Third, the boom and its de-industrialization impact was only part of the story; growth-reducing terms of trade volatility was the other. Between 1820 and 1870, terms of trade volatility was much greater in the poor periphery than the core. It was still very big after 1870, certainly far bigger than in the core. Based on econometric evidence from 1870-2000, we know that terms of trade volatility lowers long run growth in the poor periphery, and that the negative impact is big. Given that terms of trade volatility in the poor periphery was even bigger during the century before 1870, it seems plausible to infer that it also helps explain the great 19th century divergence between core and periphery.
Topic:
Economics, Globalization, International Trade and Finance, and Poverty
Political Geography:
Global Focus

42. Globalization and Smallholders: The Adoption, Diffusion, and Welfare Impact of Non-traditional Export Crops in Guatemala

Author:
Paul Winters, Angeli Kirk, Benjamim Davis, and Calogero Carletto
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
As developing countries continue on the path of economic liberalization, there is a compelling need to ensure that the benefits of globalization reach poor rural communities. Increased commercialization of agriculture and diversification into nontraditional exports (NTXs) is one strategy that has often been advocated as a way for developing countries to use their comparative advantage in lower labor costs and to achieve growth in the agricultural sector. Given the predominantly rural nature of most developing countries and the preponderance of poor people in these areas, high-value agricultural production is considered the ideal mechanism to extend the benefits of globalization directly to the rural poor:1 Allowing poor farmers to shift into the export sector and take advantage of internationally demand driven prices that are higher relative to traditional crops may reduce inequality while fostering overall economic growth (Nissanke and Thorbecke 2007).
Topic:
Agriculture, Development, Globalization, International Trade and Finance, and Poverty
Political Geography:
Global Focus

43. Minimum Wages, Globalization, and Poverty in Honduras

Author:
T. H. Gindling and Katherine Terrell
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
To be competitive in the global economy, some argue that Latin American countries need to reduce or eliminate labor market regulations such as minimum wage legislation because they constrain job creation and hence increase poverty. On the other hand, minimum wage increases can have a direct positive impact on family income and may therefore help to reduce poverty. We take advantage of a complex minimum wage system in a poor country that has been exposed to the forces of globalization to test whether minimum wages are an effective poverty reduction tool in this environment. We find that minimum wage increases in Honduras reduce extreme poverty, with an elasticity of -0.18, and all poverty, with an elasticity of -0.10 (using the national poverty lines). These results are driven entirely by the effect on workers in large private sector firms, where minimum wage legislation is enforced. Increases in the minimum do not affect the incidence of poverty in sectors where minimum wages are not enforced (small firms) or do not apply (self-employed and public sector).
Topic:
Globalization, Political Economy, Poverty, and Labor Issues
Political Geography:
Global Focus

44. Globalization, American Power, and International Security

Author:
Jonathan Kirshner
Publication Date:
09-2008
Content Type:
Journal Article
Journal:
Political Science Quarterly
Abstract:
What are the consequences of globalization for international conflict in general and American power in particular? While there is an enormous and still burgeoning literature on globalization, the answer to this crucial question remains unclear.' But failure to account for the influence of globalization will make it increasingly difficult to understand changes in the balance of power, prospects for war, and strategic choices embraced by states. Switching from polo on horseback to water polo does not change the principals or their objectives, but the contest is still profoundly transformed by the change in setting. Some players, for example, might have been much better riders than they are swimmers.
Topic:
Globalization
Political Geography:
Global Focus

45. Globalisation and Higher Education

Author:
Simon Marginson and Marijk van der Wene
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Economic and cultural globalisation has ushered in a new era in higher education. Higher education was always more internationally open than most sectors because of its immersion in knowledge, which never showed much respect for juridical boundaries. In global knowledge economies, higher education institutions are more important than ever as mediums for a wide range of cross-border relationships and continuous global flows of people, information, knowledge, technologies, products and financial capital. Even as they share in the reinvention of the world around them, higher education institutions, and the policies that produce and support them, are also being reinvented. For the first time in history every research university is part of a single world-wide network and the world leaders in the field have an unprecedented global visibility and power. Research is more internationalised than before and the mobility of doctoral students and faculty has increased. The specifically global element in academic labour markets has gained weight, especially since the advent of global university rankings. This working paper explores the issues for national policy and for individual institutions. Part I provides an overview of globalisation and higher education and the global responses of national systems and individual institutions of higher education. Part II is focused on certain areas of policy with a strong multilateral dimension: Europeanisation, institutional rankings and typologies and cross-border mobility.
Topic:
Education, Globalization, Multilateralism, and Higher Education
Political Geography:
Global Focus

46. Reducing Global Poverty: Encouraging Private Investment in Infrastructure

Author:
Research and Policy Committee of the Committee for Economic Development
Publication Date:
07-2006
Content Type:
Policy Brief
Institution:
The Conference Board
Abstract:
This paper builds on some of the findings and recommendations of the 2002 CED policy statement, A Shared Future: Reducing Global Poverty, which broadly examined the phenomenon known as globalization and offered a blueprint for how best to harness economic integration and political cooperation between developed and developing countries towards enhancing economic growth and combating global poverty. Encouraging Private Investment in Infrastructure evaluates various options for public-private partnerships and provides brief analyses of several successful projects in order to identify best practices.
Topic:
Globalization, Poverty, Infrastructure, and Investment
Political Geography:
Global Focus

47. The Democracy Makers: Human Rights and the Politics of Global Order

Author:
Nicolas Guilhot
Publication Date:
04-2005
Content Type:
Book
Institution:
Columbia University Press
Abstract:
Has the international movement for democracy and human rights gone from being a weapon against power to part of the arsenal of power itself? Nicolas Guilhot explores this question in his penetrating look at how the U.S. government, the World Bank, political scientists, NGOs, think tanks, and various international organizations have appropriated the movement for democracy and human rights to export neoliberal policies throughout the world. His work charts the various symbolic, ideological, and political meanings that have developed around human rights and democracy movements. Guilhot suggests that these shifting meanings reflect the transformation of a progressive, emancipatory movement into an industry dominated by “experts” ensconced in positions of power. Guilhot’s story begins in the 1950s when U.S. foreign policy experts promoted human rights and democracy as part of a “democratic international” to fight the spread of communism. Later, the unlikely convergence of anti-Stalinist leftists and the nascent neoconservative movement found a place in the Reagan administration. These “State Department Socialists,” as they were known, created policies and organizations that provided financial and technical expertise to democratic movements and also supported authoritarian, anti-communist regimes, particularly in Latin America. Guilhot traces the intellectual and social trajectories of key academics, policymakers, and institutions, including Seymour M. Lipset, Jeane Kirkpatrick, the “Chicago Boys,” influenced by Milton Friedman, the National Endowment for Democracy, and the Ford Foundation. He examines the ways in which various individuals, or “double agents,” were able to occupy pivotal positions at the junction of academe, national, and international institutions, and activist movements. He also pays particular attention to the role of the social sciences in transforming the old anti-communist crusades into respectable international organizations that promoted progressive and democratic ideals, but did not threaten the strategic and economic goals of Western governments and businesses. Guilhot’s purpose is not to disqualify democracy promotion as a conspiratorial activity. Rather he offers new perspectives on the roles of various transnational human rights institutions and the policies they promote. Ultimately, his work proposes a new model for understanding the international politics of legitimate democratic order and the relation between popular resistance to globalization and the “Washington Consensus.”
Topic:
International Relations, Globalization, Human Rights, and Democracy
Political Geography:
Global Focus
Publication Identifier:
9780231504195
Publication Identifier Type:
ISBN