The pros and cons of globalization for developing countries: a review of the theoretical issues and the empirical debate.

Abstract

This chapter provides an overview of the opposing views on globalization, and evaluates the pros and cons of globalization for different groups of developing countries. Section 1 of the paper reviews the theoretical issues raised in this debate and the empirical evidence on the impact of globalization on economic growth. The section includes a survey of the development strategies that international development organizations have promoted. In addition, the section presents the main results of an empirical study on global income inequality based on the data on per capita gross domestic product of 152 developed and developing countries over the period 1960-98. Section 2 focuses on the different approaches to the trade policy of a developing country in the current global trading system. Section 3 focuses on the agricultural sector and on the trade and development policies that affected the rural population. The section underscores the difficulties that the rural population had to face during and as an effect of the structural adjustment programmes and the reforms to liberalize trade. Some central considerations for the formulation of development policies are discussed in the conclusion.