Wednesday, October 2, 2002
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Globalization benefits the poor... but there's a caveat
This is kind of a good news, bad news sort of post. The libertarian in me thinks this is great news; the scholar in me is a touch more skeptical.
The bad news is that this does not really test the argument that anti-globalization advocates make, which is that pro-globalization policies lead to greater inequality. To properly test this argument, the proper "unit of analysis" is at the policymaking level, not the individual level. What's driving the good results is the massive reduction of poverty in only two states -- China and India. And while these countries clearly adopted more globalization-friendly policies over the past two decades, Dani Rodrik and others are correct in pointing out that neither of them is the IMF poster-state for laissez-faire development policies.
So are the anti-globalization folks right? I don't think so, because their results have even bigger flaws, which I'll get to in a later post. The key thing to realize for now is that the claims of rising global inequality are bogus.posted by Dan on 10.02.02 at 10:45 PM