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Additional info for Globalization and the Poor: Exploitation or Equalizer? (Idea Sourcebooks in Contemporary Controversies)

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Mishel, Lawrence, Jared Bernstein, and John Schmitt. 2001. The State of Working America 2000/2001. : Cornell University Press. , and S. Chen. 1997. ” World Bank Economic Review 11(2). , Thea Lee, and John Schmitt. 1997. ” Briefing Paper. : Economic Policy Institute. Scott, Robert E. 2001a. ” In Workers in the Global Economy – Project Papers and Workshop Report. : Cornell University School of Industrial Relations. Scott, Robert E. 2001b. ” NAFTA at Seven: Its Impact on Workers in All Three Nations.

The promotion of foreign direct investment (FDI) is hailed as the new engine for development. But FDI flows to Africa are very small (under US$ 5 billion in 1996), are largely advantageous to only a few countries (such as South Africa), and tend to benefit the already privileged elite. Technological: Africa is being affected in profound ways by the new electronic communication possibilities that bind together the globe in previously unimaginable ways. Personal computers, fiber electronics, satellites, cellular phones, networks of faxes, e-mail and the Internet: all of these structures make economic and political globalisation more and more a reality.

D) Globalization and the dissemination of information and communication technologies further accentuated fragmentation of labor markets. They created a wider dispersion in salaries and living standards between different types of workers. One obvious result is the formal-informal sector dichotomy (UN Report on the World Social Situation, p. 9). Several studies indicate that large increases in inequality slow down growth for a number of reasons, including lack of adequate reward for differences in individual talent and effort.

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