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Globalization, Poverty and Inequality: What Is the Relationship? What Can Be Done?

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  • Kaushik Basu
Abstract
The paper studies the relation between globalization, inequality and marginalization, within and across nations. It reviews the existing evidence on globalization and global inequality and argues, using a simple theoretical model, that the two are inter-connected. It discusses policy alternative policies to counter extreme poverty and inequality. The paper takes the view that curbing these, even within one country, requires global, cross-country policies that we do not currently have, and advocates the setting up of an international initiative to coordinate such policies.

Suggested Citation

  • Kaushik Basu, 2005. "Globalization, Poverty and Inequality: What Is the Relationship? What Can Be Done?," WIDER Working Paper Series RP2005-32, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2005-32
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    References listed on IDEAS

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    More about this item

    Keywords

    Equality and inequality; Globalization; International economic relations; Poverty;
    All these keywords.

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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