Imagine There's No Country: Poverty, Inequality, and Growth in the Era of Globalization / Edition 1

Imagine There's No Country: Poverty, Inequality, and Growth in the Era of Globalization / Edition 1

by Surjit S. Bhalla
     
 

ISBN-10: 0881323489

ISBN-13: 9780881323481

Pub. Date: 11/28/2002

Publisher: Peterson Institute for International Economics

A new era of globalization, which began in the 1980s, brought about a significant decline in costs of transportation, communication, and production; considerably improved intercountry competitiveness; and broke down trade and cultural barriers among countries. The concept of a sovereign nation has been increasingly questioned in recent years. Some, indeed, have…  See more details below

Overview

A new era of globalization, which began in the 1980s, brought about a significant decline in costs of transportation, communication, and production; considerably improved intercountry competitiveness; and broke down trade and cultural barriers among countries. The concept of a sovereign nation has been increasingly questioned in recent years. Some, indeed, have imagined a world without boundaries, without countries. Others who doubt the benefits of globalization have called for increased protectionism and greater regulation of economic activity.

Has globalization made the world grow faster? Has poverty declined at a faster pace during globalization? If yes, why? If not, is it because the growth rate was lower, or because inequality worsened, or both? Who has gained from globalization? Is it the elite in both the developed and developing world? What about the middle class? Who are they? How have they benefited from (or lost to) the forces of globalization?

This comprehensive study firmly debunks several popular myths such as the belief that globalization has resulted in lower overall growth rates for poor countries, increasing world inequality, and stagnating poverty levels. Through rigorous, integrated methodologies and an enhanced dataset, the author, Surjit S. Bhalla, answers some of the most pressing policy issues confronting us today.

Author Biography: Surjit Bhalla has since 1986 been Managing Director of Oxus Research and Investments, a New Delhi based asset management and emerging markets advisory firm. He was chief global strategist for emerging markets at Deutsche Bank from 1994-96, and had worked at several other prominent businesses or organization prior to that period, including Goldman Sachs, the World Bank, and the Brookings Institution. He also served as Executive Director of the Policy Group in New Delhi, India from 1986-90. His research has mainly focused on economic development, capital markets, macroeconomic policy, poverty and economic growth. He has published more than 70 articles in books and journals, in addition to some 250 columns in magazines and newspapers.

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Product Details

ISBN-13:
9780881323481
Publisher:
Peterson Institute for International Economics
Publication date:
11/28/2002
Edition description:
New Edition
Pages:
240
Product dimensions:
6.00(w) x 8.90(h) x 0.60(d)

Table of Contents

Prefacexiii
Acknowledgmentsxvii
IReceived Wisdom on Poverty, Inequality, and Growth
1Overview: New Results on Poverty, Inequality, and Growth in the Era of Globalization1
The Issues3
The Framework and the Data5
A Bird's Eye View6
A More Detailed Overview7
Results on Absolute Poverty8
Results on Propoor Growth9
Has Globalization Worsened Inequality?10
Has Globalization Been Good for Poor People?11
Research and Monopolies11
2The Pattern of Economic Growth, 1950-200013
Data and Methods of Estimating Growth14
Global Levels of Income and Growth17
Globalization: Divergence21
Evidence of Convergence or Divergence23
3Inequality as We Know It29
Measuring Inequality31
Measuring Intertemporal Inequality32
Simple Inequality Mathematics32
Inequality: Kuznets Curve and Data Requirements34
Recent Evidence on Country Inequality36
The Evidence Once Again38
Tests of Inequality Change40
Elasticity of Connection, 1960-200044
Country-Level Inequality46
Toward Individual Inequality Estimates46
Individual Inequality47
Summing Up: The Facts as We Know Them50
4Poverty as We Are Told It Is51
Defining and Measuring Absolute Poverty53
Poverty in the United States54
The World Bank Enters the Poverty Arena56
First Absolute Poverty Line, Estimates, and Forecasts57
The Search for an Absolute Absolute Measure59
Rediscovering the $1-a-Day Poverty Line61
The Poverty Line Reduced63
Evolving World Bank Definitions of Poverty67
IIDiscussion of Knowledge on Poverty, Inequality, and Growth and Analysis of Data and Methodologies
5Taking Stock of the Facts69
The Global Pie, 1960-200070
Inequality Trends70
Poverty Trends74
Not Propoor Growth74
Is the Conventional Wisdom Correct?75
Facts and Figures76
The Importance of Data77
Duck and Smell Tests to Differentiate78
Experts Debate78
Elasticity of the Gini with Growth79
Poverty "Smell" Tests82
The Need for Alternative Studies87
6Recounting Poor People91
Definitions and Methods93
Using Different PPP Exchange Rates93
Differences between World Bank Consumption and and Official PPPs95
All Indians Were Dead in 1950, or 196099
7Surveys and National Accounts: Can a Choice Be Made?103
What Is the Problem?104
There Is a Problem Even in the United States106
In Defense of Surveys107
What Happened to the Survey/National Accounts Ratio?109
Unintended Consequences of Moving to Survey Means111
Do National Accounts Estimates Have Problems?113
Choosing between Surveys and National Accounts114
By How Much Do Rich People Understate Expenditures?116
Estimating Undercoverage of Rich People119
The SAP $1.50 Poverty Line120
"Smell" Tests for Indian Poverty Estimates121
Should Surveys or National Accounts Be Used? Or Both?126
8Other Methodological Considerations129
The Individual versus Countries129
Simple Accounting Procedure for Generating W3i131
The Kakwani Method of Estimating a Lorenz Curve133
Is SAP Accurate?134
Using SAP to Identify Errors in Published Ginis134
IIINew Results on Poverty, Inequality, and Growth, Based on Simple Accounting Procedure Methods
9Poverty as It Is--and Forecasts for 2015139
How Much Poverty Is There in the World?140
Where Did Poverty Decline from 1960 to 2000?141
The Evolution of World Poverty, 1820-2000142
A Digression: How Do You Assess the Best?146
Regional Poverty Trends147
Time to Raise the Poverty Line147
Forecasts for 2000 and 2015149
10Reinventing the Kuznets Curve: Propoor Growth151
The Search for Propoor Growth153
The Growth-Poverty Connection154
Propoor Elasticity155
Propoor Mathematics157
Empirical Estimates of Propoor Growth158
Estimating Propoor Elasticity159
Has Global Growth Been Propoor?161
Using Consistent Data163
Is the Initial Income Distribution Important?166
A Simple Method for Estimating Propoor Growth167
Forecast of Poverty in 2015168
11Inequality as It Is173
SAR Results for World Inequality, 1950-2000174
Regions and Indices175
Individual Inequality Studies Compared177
How Accurate Are the SAP Estimates?181
Poor People Have a High Elasticity of Connection182
What Happened with Global Inequality?183
The Relationship between Growth and Inequality185
The Middle Class186
12Globalization: A Second Look189
Income: Before and After190
Convergence: New Results190
Catch-Up with Globalization191
Is There a Poverty-Terrorism Connection?196
The Evolution of Living Standards, 1960-2000196
13Conclusion: Roads Not Taken201
Different Forks for Different Folks202
Answers to Often-Asked Questions204
Appendix AThe Simple Accounting Procedure Dataset207
Appendix BEstimation of the Lorenz Curve, and Its Accuracy211
Appendix CBasic Data for the Simple Accounting Procedure217
References225
Index235
Tables
Table 1.1Some new and different results for poverty, inequality, and growth in the era of globalization, 1980-2000
Table 2.1Annualized per capita growth rates according to various measures of GDP
Table 2.2GDP of global regions, 1950-2000
Table 2.3Population of global regions, 1950-2000

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