Globalization for Development: Trade, Finance, Aid, Migration, and Policy (Trade and Development Series)

332 Pages·2006·2.08 MB·English

by  Ian Goldin

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IAN GOLDIN
KENNETH REINERT

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GLOBALIZATION
DEVELOPMENT
TRADE, FINANCE, AID, MIGRATION, AND POLICY
REVISED EDITION
IAN GOLDIN
KENNETH REINERT
A copublication of the World Bank
and Palgrave Macmillan
© 2007 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington, DC 20433
Telephone: [phone]
Internet: www.worldbank.org
E-mail: [email protected]
Revised Edition: April 2007
All rights reserved.
1 2 3 4 5 10 09 08 07
A copublication of The World Bank and Palgrave Macmillan.
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ISBN-10: 0-8213-6929-6
ISBN-13: 978-0-8213-6929-6
eISBN: 0-8213-6930-X
eISBN-13: 978-0-8213-6930-2
DOI: 10.1596/978-0-8213-6929-6
Library of Congress Cataloging-in-Publications Data has been requested.
Contents
FOREWORD by François Bourguignon IX
ACRONYMS AND ABBREVIATIONS XIII
ACKNOWLEDGMENTS XVII
ABOUT THE AUTHORS XIX
1
BACKGROUND AND CONTEXT 1
2
GLOBALIZATION AND POVERTY 21
3
TRADE 47
4
FINANCE 79
5
AID 113
6
MIGRATION 151
with Andrew L. Beath
7
IDEAS 193
8
TOWARD A POLICY AGENDA 227
REFERENCES 265
INDEX 285
v
vi Contents
Boxes
1.1 John Maynard Keynes on Globalization 7
1.2 International Agreements, Institutions, and Key Players 8
2.1 The Experience of Being Poor 27
2.2 Volatile Widgets in the 1990s 39
2.3 The Idea of Global Public Goods 42
3.1 Export Processing Zones 60
3.2 Textile and Clothing Protection 65
3.3 The Integrated Framework 71
4.1 Financial Crises 83
4.2 Targeting Poor People: Commercial Microfinance 90
4.3 Creating Links 95
4.4 The Nairobi Stock Exchange 101
5.1 Aid in Zaire 127
5.2 Millennium Development Goals 145
6.1 Migrant Dreams Become Nightmares 163
6.2 Musical Doctors 175
6.3 Migrant Labor Institutions of the Philippines 184
7.1 Mercantilism 196
Figures
1.1 Trade and Extreme Poverty in Historical Perspective 10
2.1 Per Capita Income by World Region 22
2.2 The Growth of World Population 24
2.3 Population Age Distributions 25
2.4 Relative Economic Strength of Developing Countries,
Historical and Projected 26
2.5 The Historical Evolution of World Poverty 27
2.6 The Recent Evolution of World Poverty 28
2.7 Regional Incidence of Extreme Poverty 29
2.8 Life Expectancy by World Region 30
2.9 Infant Mortality 31
2.10 Female Youth Literacy Relative to Male Youth Literacy
and Infant Mortality 32
2.11 Trade and FDI for Low- and Middle-Income Countries 34
2.12 Sectoral Composition of Developing Country
Nominal Exports 35
Contents vii
2.13 Nominal Flows of Aid, FDI, Portfolio Investment,
and Remittances to Developing Countries 38
2.14 Foreign Remittances Per Capita and as a Percentage
of Per Capita GDP, 2003 40
2.15 Communication Access, 2004 44
3.1 Low- and High-Technology Manufactured Exports of Some
Developing Countries, 2003 57
3.2 Some Characteristics of the MaquiladoraIndustry
in Mexico 59
3.3 Tariff Escalation on Developing-Country Exports
to Developed Countries 62
3.4 OECD Agricultural Subsidies 63
3.5 Primary Commodity Prices in the 20th Century 68
3.6 Arms Imports Per Capita, 2003 72
4.1 Net Private Capital Flows to Low-Income Countries,
1970–2004 82
4.2 Net Private Capital Flows to Middle-Income Countries,
1970–2004 84
4.3 Net Private Capital Flows to Low- and Middle-Income Countries
as a Percentage of GDP, 1970–2004 86
4.4 Global Shares of Population, PPP GDP, and FDI, 2004 93
4.5 Net Inward Portfolio Equity Flows to Developing Countries,
1995–2004 100
4.6 Net Inward Debt Flows to Developing Countries,
1997–2004 103
4.7 Gross Inward Bank Lending, 1996–2004 105
4.8 Composition of Financial Development 107
5.1 Magnitude and Vintage of Major Aid Organizations 117
5.2 Inflows of Official Development Assistance by Region,
1960–2004 119
5.3 Foreign Aid Receipts as a Percentage of Low- and Middle-Income
Country GDP, 1960–2004 123
5.4 Breakdown of Aid Flows to Sub-Saharan Africa
(excluding Nigeria) 123
5.5 External Debt of Developing Countries 141
5.6 Aid and Support for Agriculture as a Share of GDP, 2002 146
6.1 Inflow of Migrants to the United States and Canada,
1820–2003 155
viii Contents
6.2 Rates of Emigration to the United States by Income,
1989–2000 169
6.3 Flows of Official Remittances to Regions of the Developing World,
1975–2006 178
Tables
5.1 Average Annual Aid Flows Per Person in Real 2000 US Dollars,
1960–2003 116
5.2 Developments in the History of Foreign Aid 118
5.3 Major Deployments of Foreign Assistance 120
5.4 ODA as a Share of GNI, 2005 and Estimated for 2006 122
5.5 Yields of Major Food Crops (kg/ha) in Developing Nations,
1970–2004 138
6.1 Historical Rates of Migration 154
6.2 Stock of International Migrants, 1990, 2000, and 2005 157
6.3 Major Channels of Modern International Migration 159
6.4 Economic Importance of Remittances, 2003 177
7.1 Potential Effects of Intellectual Property Protection
on Poor People 205
7.2 Idea Changes in Development Thinking 212
8.1 Examples of Policies Affecting Globalization Processes
and Outcomes 230
8.2 A Global Policy Checklist 260