World Bank: more globalisation

A new report from the World Bank argues that globalisation has helped reduce world poverty, but still has more to do.

Globalisation often has been a very powerful force for poverty reduction, but too many countries and people have been left out

Nicholas Stern
World Bank

Globalisation must be harnessed better to help the world's poorest countries improve the lives of their citizens, says the report.

"Globalisation often has been a very powerful force for poverty reduction, but too many countries and people have been left out," says Nicholas Stern, the World Bank's chief economist.

The Bank believes this has become even more important following the attacks on New York on 11 September and the advent of the global economic slowdown.

The fortunate and the less fortunate

The report divides developing countries in two groups - countries that have been integrated into the world economy and those that have not.

The countries with more globalised economies have seen higher growth in incomes, longer life expectancy and better schooling during the two decades ending in the late 1990s, according the Bank.

It also says these countries experienced 5% growth in income per capita during the 1990s, compared with 2% in rich countries.

The report adds the other developing countries excluded from this group have on average suffered contracting economies and rising poverty.

The former group includes countries such as China, India and Mexico, while the latter counts countries in sub-Saharan Africa, the Middle East and the former Soviet Union.

Building on Doha

The report also says that World Trade Organisation (WTO) meeting in Doha last month will provide a boost to further globalising world economies.

"We must build on the success of the WTO talks in Doha to ensure that rich countries dramatically reduce the barriers that prevent poor countries from living up to their potential - including taking action on agricultural subsidies," says Paul Collier, a co-author of the research report.

In order to help developing countries take better advantage of the benefits of globalisation, the World Bank proposes a seven-point plan:

• A development round of trade talks, following the agreement in Doha

• Improving the investment climate in developing countries

• Improving delivery of education and health services

• Providing social protection in a changing labour market

• Increasing foreign aid

• Debt relief for reformers

• Tackling greenhouse gases.

"Both global and national action is needed to help those people who have been marginalized," concludes Mr Dollar.