Table of Contents

Globalization and Economic Development

Globalization and Economic Development

Essays in Honour of J. George Waardenburg

Edited by Servaas Storm and C. W.M. Naastepad

Globalization is widely regarded as a means not only of ensuring efficiency and growth, but also of achieving equity and development for those countries operating in the global economy. The book argues that this perception of globalization as the road to development has lost its lustre. The experience of the 1990s belied expectation of the gains, such as faster growth and reduced poverty, which could be achieved through closer integration in the world economy.

Chapter 1: Development: Not by globablization alone

Servaas Storm and C.W.M. Naastepad

Subjects: development studies, development economics, economics and finance, development economics, post-keynesian economics

Extract

1. Development: Not by globalization alone Servaas Storm and C.W.M. Naastepad 1. INTRODUCTION The process of global economic integration has sharply altered the context in which most governments are thinking about policies for economic development. Indeed, in many developing economies, traditional developmental concerns relating to industrialization, employment generation and poverty have lost priority relative to the pursuit of international competitiveness (Rodrik, 1999). In response, mainstream economic theorizing, as usual following in the footsteps of (the changed) political reality, has formulated an intellectual rationale for globalization that is almost prescriptive. Thus, globalization is perceived as a means of ensuring not only efficiency and growth, but also equity and development for countries that join the global system, while bringing economic deprivation to countries that do not (Sachs and Warner, 1995; World Bank, 1999). However, the chapters contributed to this book argue that this view of globalization as the road to development has lost its lustre, as the development experience during the 1990s belied expectations of the gains from external integration in terms of faster growth, greater employment opportunities and reduced levels of poverty. Moreover, the downside risks of globalization have proved to be far greater than was generally expected, as was demonstrated by the Asian and Latin American crises. Against the background of this experience, this introductory chapter analyses the implications of globalization for strategies of development. Section 2 discusses the distinguishing features of the recent wave of globalization for the developing world. Section 3 briefly outlines the mainstream view...

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