Globalization, Growth, Poverty and Inequality: Perspectives from Eastern Europe and South Asia

Abstract

There are volumes of literature in search of linkages between globalization and poverty. The pro-globalization advocates argue that it led to faster growth, reduction in poverty and in inequality. The anti-globalization critics argue that it led to slower but more volatile growth, increased poverty and inequality. We examined the claim of positive relationship between growth rate with reduction of poverty and inequality. We find the claim that growth reduces poverty and inequality has not been realized. Moreover, positive growth due to globalization either immiserizes the poor or trickles down benefits insignificantly.