Globalization And Poverty Since 1980

Summary of Globalization, Inequality, and Poverty since 1980

Throughout the years of globalization, many countries have used the integration of economies and societies as tools in order to grow and escape poverty. In the following article, “Globalization, inequality, and poverty since 1980”, the author David Dollar states that integration through the following: trade, foreign investment and telecommunications can increase productivity and accelerate development within a country. Countries such as China, India, Vietnam and Uganda are examples of persuasive evidence that display the proper use of globalization within their states to their advantage to reduce poverty.

The author elucidates the notion of integration through the use of a historical

An example is China, where they partook and expanded international trade and as a result has had an immense transformation in their economy. Similar to Vietnam, when they were suffering from an economic crisis during the mid 1908s up until they opened up to international market, foreign trade, domestic savings and strengthening property rights, which eventually stabilized their economy. The author highlights the fact that these cases are a demonstration of how foreign trade and investment can transform the growth and knowledge achievement within developing countries. Not only that, but these globalizing states that have accepted other good economic and social policies have reached a whole new level of reforms. These contributions clearly show how they have accelerated in terms of economic

These theories are used to clarify the development in the IPE (International political economy).

Thailand’s economy has grown and stabilized, however, from 1996 to 1997 as investors and currency traders pulled out their money and investment, the country’s economy collapsed and the Asian crisis began. Along with Thailand, South Korea’s economy suffered tremendously that they had no choice but to rely on the loans from the IMF (International Monetary Funds). What exactly caused this crisis is unknown, nevertheless lessons are learned in order to prevent such catastrophes from happening again. There are three stories that attempt to explain the causes of this crisis, for instance the liberal story, also known as “Crony capitalism” which claims that the main cause were the financial policies that the Asian countries acted upon. The lesson taken from it is that ignoring the liberal economic principles will lead to consequences that can strike harder later on by the financial markets. The state power story is that these unprepared countries liberalized too early permitting massive quantity of money in and out of their country. The lesson is that these countries needed to be thoughtful of their national interest as well as be cautious when they liberalize. Finally, the critical story suggests that