Poverty and Inequality in the Years of Globalisation

The last two-three decades have been characterised by a determined return to economic integration and neo-laissez faire policies, but at the same time poverty and inequality have remained high or have increased. Prospects are not encouraging for many reasons, especially the inadequacy of institutions. In particular, we perceive the need for strengthening and adjusting the welfare state. Analysing the connections between globalisation and growth in the developing countries, distinction must be made between commercial and financial integration. In both cases, however, the liberalization of emerging countries must be gradual and closely dependent on their effective capacity to address market distortions and to limit social costs. Globalisation requires the strengthening of international cooperation institutions. This, however, in turn depends on prior reform of their decision-making mechanisms to enable such institutions to serve effectively the real interests of the international community.