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145 Int'l Lab. Rev. 167 (2006)
The Social Impact of Globalization in the Developing Countries

handle is hein.journals/intlr145 and id is 175 raw text is: International Labour Review, Vol. 145 (2006), No. 3 The social impact of globalization in the developing countries Eddy LEE* and Marco VIVARELLI** S ince the 1980s, the world economy has become increasingly con- nected and integrated. Decreasing transport costs and the diffusion of information and communication technologies have consid- erably relativized the concept of distance, while gross trade, foreign direct investment (FDI), capital flows and technology transfers have increased significantly. In most countries, however, the current wave of globalization has been accompanied by increasing concern about its impact in terms of employment and income distribution. Whatever definitions and indicators are chosen, the current debate is indeed characterized by an acrimonious dispute between advocates and critics of globalization. The dispute extends even to employment and income distribution effects within the developed world, but positions diverge even more sharply over the impact of glo- balization on the developing countries. For instance, the optimists stress the link between increasing trade and economic growth and, from this premise, conclude that trade is good for growth and that growth is good for the poor (in terms of both job creation and poverty allevia- tion). The pessimists, by contrast, show that globalization is quite un- even in its impact and gives rise to negative counter-effects on previ- ously protected sectors, entailing also the marginalization of entire regions of the world and possible increases in income inequality within * International Institute for Labour Studies, International Labour Office, Geneva. **Uni- versitA Cattolica, Dipartimento di Scienze Economiche e Sociali, Piacenza; Centre for the Study of Globalisation and Regionalisation (CSGR), Warwick; Institute for the Study of Labour (IZA), Bonn; Max Planck Institute of Economics - Entrepreneurship, Growth and Public Policy Group, Jena. This article is one of the outcomes of a four-year programme of economic research (2001- 05), funded by the Department for International Development (DFID) of the United Kingdom and developed at the International Labour Office (International Policy Group). The general aim of the project was to fill a gap in the understanding - both theoretical and empirical - of the impact of globalization. Responsibility for opinions expressed in signed articles rests solely with their authors and publication does not constitute an endorsement by the ILO. Copyright © International Labour Organization 2006

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