The service sector has witnessed a significant increase in cross-border trade and investment flows. This globalisation has been driven by a variety of factors, including advances in information and communication technology, rising income levels and associated increases in the demand for services, opening up and deregulation of many services permitting the entry of domestic and foreign private providers, and demographic imbalances between countries. Globalisation of services has in turn provided countries with new development opportunities and with new avenues for realising economic and welfare gains, but it has also thrown up many challenges and dilemmas for governments and international institutions. This chapter pulls together the body of existing and emerging work on the globalisation of services and its implications for development.
Kenneth A. Reinert
Trade in goods refers to the exchange of tangible and storable items among the countries of the world and, under the right conditions, it provides a number of types of gains from trade. While there has been a great deal of liberalisation in trade in goods, this has been uneven in some specific sectors. It is clear that a number of positive growth and development trajectories have involved exports of goods, but the replication of this pattern by other countries is not always straightforward. Trade in goods has been an integral part of the multilateral trading system, but multilateral negotiations under the Doha Round have been difficult.
The rapid diffusion of information age technologies in the developing world has called into question old analyses of technology with slow diffusion and growth. Rather than viewing technology as an exogenous instrument of change, current analyses examine the regulatory, institutional, and cultural contexts that interact with technology. This chapter analyses the theoretical propositions before examining their applications in issue-areas such as technology transfer, innovation clusters and implications for the information age.
Philip Martin and Ibrahim Sirkeci
Remittances to developing countries, monies sent by international migrants to their countries of origin, topped $1 billion a day a decade ago and are projected to reach $440 billion in 2015. Remittances to developing countries surpassed official development aid in the mid-1990s and have risen much faster than the number of international migrants. Remittances help migrants and their families to achieve upward mobility and open a window to faster economic and job growth in migrant countries of origin. Remittances raise two major issues: how to maximise the flow of monies that migrants send home voluntarily and how to ensure that remittances reduce poverty and spur development in migrant areas of origin. Sound economic policies that provide investment opportunities maximise inward remittance flows, but there is no formula to ensure that remittances spur broader economic development.
David A. Clark, Shailaja Fennell and David Hulme
Poverty and inequality are complex social phenomena that can be defined in different ways and framed in terms of three overarching ‘meta-dimensions’ – depth (or severity), breadth (or multidimensionality) and duration (or persistence). Few concepts or measures come close to capturing the full complexity of these phenomena and some approaches even allow for a certain amount of imprecision in their specification. The relationship between poverty and inequality is also complex and varies across time and geographical space. As globalisation has gathered pace, economic growth has been associated with both reductions in global poverty and greater disparities in wealth.
This chapter discusses the idea of politics as part of, and central to, the process of development whereby people try to improve the quality of their lives. It suggests that, while such an idea is inherently normative, there is a range of sub-categories around which there is some agreement. The idea of a large, bonded political community is basic to political interaction, may express itself as a claim to nationhood, and the people of such a nation may wish to define themselves in relation to a usually delineated territory. This implies institutions serving the people of the territory, giving rise to the notion of the state. The chapter notes that these ideas are relatively innocuous, except where there is disagreement about who is and is not a member of the nation, whether the state is actually representative and whether its government is viewed as legitimate. This then raises the questions of voluntarism and compulsion about state membership, repression, opposition and transitions to and from authoritarianism. The counterpoint to such authoritarianism is the idea of a representative, accountable and presumably transparent political process, usually through a free and fair electoral process. However, such an outcome is not inevitable and, once it has been achieved, it is not always sustained.
Migration is a defining feature of globalisation and development, both within and across borders. The world is highly mobile, with more than 1 billion persons estimated to be living outside their country or region of origin. Alongside trade and finance, migration contributes to local and global development, its aggregate financial gains far exceeding official development aid. Yet there is no comparable free movement of labour. Migration raises new questions about globalisation, such as how to reconcile domestic immigration laws with global market forces, how to protect transient global workers, adapt local skills development to global labour needs and manage mass displacements owing to climate change and crises. These are pressing challenges for governance and international cooperation which, if neglected, place migrants and their families at risk, damage the credibility of migration and reduce the gains of globalisation. Yet migration is not regulated or coordinated globally, and the international system around migration remains fragmented and slow to cohere around these challenges. Is it time to revisit a global migration governance regime? Who would or could enforce it?
Kimberly Ann Elliott
Sweatshop scandals in which workers are harshly exploited and sometimes even die in horrible industrial accidents appear regularly in the international media. Yet those same sweatshops also create millions of jobs, many of them filled by young women with few alternatives to earn a living. So is globalisation leading to a race to the bottom or the top for the world’s workers? Would improving labor standards threaten jobs in poorer exporting countries? Alongside the debate over the economics of trade and labour standards, there is a political economy debate over the use of trade sanctions to enforce standards. Overall, the available evidence suggests that globalisation and labour standards can be complementary rather competing paths to improved living standards in developing countries. The tools for promoting labour standards alongside globalisation remain relatively weak, however.
Intellectual property regulation is increasingly tied to almost every aspect of development. As such, it is both hotly contested and highly politicised, with divisions of interest between the global North and the global South, and important contestations within those groupings. This chapter provides a broad overview of the issues at stake and the some of the important context needed to understand the various sides of the debates.
Illicit trade exists in many diverse commodities that often do not receive the attention they deserve. Whereas significant attention is focused on the drug trade, there are many less-recognized forms of illicit trade, including trade in wildlife, people, counterfeits and antiquities. Illicit trade is more than a competitor to legitimate business. The rise of illicit trade has had an economic impact and some forms of this trade undermine the sustainability of the planet. There are also important national security implications as illicit trade exists in arms, dual-use materials for weapons of mass destruction, and terrorists are increasingly relying on illicit trade to fund their activities. The strategies to address illicit trade need to be multifaceted involving many different sectors of society as well as government. Public–private partnerships are key in addressing this problem.