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, London24th November 2010Professor Tony McGrew, Strathclyde University

Text of Globalization and Poverty: North-South Connections

  • 1.Globalization and Poverty : North-South Connections Presentation to the Workshop on Global Connections : UK and Global Poverty Solutions Joseph Rowntree FoundationLondon 24 thNovember 2010 Professor Tony McGrew Strathclyde University

2. Overview

  • Globalization and Poverty: Controversies
  • Globalization and Poverty: Mechanisms
  • Globalization and Poverty: Challenges

3. Three ways of thinking about globalization..

  • Process objective trends/tendencies of growing worldwide interconnection and interdependence
  • Project - political,economic,organizational strategy or programme-e.g. Chinas development strategy globalizing its economy; organized crime globalizing its activities; Multinationals and offshoring
  • Paradigm - collective way of thinking about ,talking about, simplifying ,explaining the world

4. Globalization

  • implies closer economic integration through trade,finance,and production linkages; emergence of a single planetary economy
  • Whats new ? :form, scale, speed, intensity of global economic integration

5. 6. Aspects of economic globalization..

  • Uneven economic integration of countries into world economy
  • Emergence of global production chains linking production sites across the globe
  • Emergence of 24hr real-time global financial markets
  • Redistributes risk, life chances, and economic well being

7. 8. Controversies : the global condition

  • The Great Convergence : globalization and spreading the wealth ,global poverty reduction, narrowing global and international income inequality, erosion North/South divide
  • The Great Divergence : globalization and concentrating the wealth, exaggerated poverty reduction, erosion of social protection, polarization and new geography of inequality

9. 10. Controversies : North-South connections

  • Both accounts highlight significance of globalization : different conclusions but predicated on causal connections
  • Different contexts : scale, severity and experience of poverty ,institutional capacity toaddress poverty
  • Complexity : relative and differential impacts of globalization (wage inequality -offshoring vs. technological change; energy/food price volatility)

11. 12. Mechanisms of connection 13. Challenges

  • Connection as threat : discourse of globalization as economic threat ; dangers of protectionist or displacement policy responses e.g. migration
  • Governance: poverty reduction requires collaborative global and national/local responses but significant barriers e.g. MDGs
  • Knowledge : mapping and understanding global poverty connections(significance/limits) and the experience of poverty/inequality under conditions of globalization