Is globalization reducing poverty and inequality?

Area of Science:

• Socio-economic impacts of globalization
• Global poverty and inequality trends
• International economic relations

Background:

• Recent decades show divergent economic trends: rapid growth in East Asia, stagnation in Latin America, and regression in former Soviet states, Eastern Europe, and sub-Saharan Africa.
• Neoliberal economic theory posits that increased global economic integration has reduced world poverty and income inequality.
• This perspective suggests globalization, under the post-Bretton Woods regime, fosters mutual benefits over conflicting interests.

Purpose of the Study:

• To critically examine the empirical evidence supporting the neoliberal argument on globalization's effects.
• To investigate the net trends in global poverty and income inequality over the past two decades.
• To question the widely accepted narrative of universal benefits from economic globalization.

Main Methods:

• Analysis of economic trends across different global regions (East Asia, Latin America, Africa, Europe, former Soviet Union).
• Evaluation of data on poverty rates and income inequality.
• Comparative assessment of economic performance in integrated versus less integrated economies.

Main Results:

• Significant economic growth and poverty reduction observed in India, China, and East Asia.
• Economic stagnation or regression documented in Latin America, sub-Saharan Africa, and parts of Europe.
• The study questions the universality of positive outcomes attributed to globalization.

Conclusions:

• The neoliberal argument's empirical basis regarding global poverty and inequality reduction is challenged.
• The benefits of economic globalization appear unevenly distributed across regions.
• Further investigation is needed to understand the complex relationship between global integration and socio-economic outcomes.