Equity and Growth in a Globalizing World »

What has been the evolution of poverty and equity during the recent globalizing decades?

How have poor countries fared on the Millennium Development Goals?

What role does wealth inequality play in the level and efficiency of investment and, hence, in economic growth?

Is gender equity a smart pro-growth strategy as well as a pro-poor one?

How is equality different from equality of opportunity, and should policy makers pursue one, the other, or both?

In formulating distributional strategies, should the middle class be integrally considered, or should the focus be entirely on the poorest of the poor?

What are the precise impacts of globalization on poverty and equity, and what are the policy implications of these impacts?

Is the problem with globalization that a key element is missing - the globalization of labor employment?

What is the role of international migration in the evolution of equity within and between nations?

This book has been prepared for the Commission on Growth and Development to evaluate the state of knowledge on the relationship between poverty, equity, and globalization. It considers a range of questions on poverty and equity within nations, and the policy frameworks that can best address distributional concerns as the basis for a growth strategy. It also examines the important issue of equity between nations, in particular the possible role of international migration in alleviating this inequity.

Written by prominent analysis in their fields, Equity and Growth in a Globalizing World seeks to create a better understanding of the interactions between globalization, growth, and different dimensions of equity and poverty, and to inform policy makers of possible policy levers to address central concerns in the debates in this area.

Preface xi

Workshop Participants xv

About the Editors and Contributors xvii

Acknowledgments xxv

Abbreviations xxvii

1 Equity within and between Nations Ravi Kanbur Michael Spence 1

2 The Millennium Development Goals: An Assessment François Bourguignon Agnès Bénassy-Quéré Stefan Dercon Antonio Estache Jan Willem Gunning Ravi Kanbur Stephan Klasen Simon Maxwell Jean-Philippe Platteau Amedeo Spadaro 17

3 Globalization, Growth, and Distribution: Framing the Questions Ravi Kanbur 41

4 Investment Efficiency and the Distribution of Wealth Abhijit V. Banerjee 71

5 Gender Equality, Poverty Reduction, and Growth: A Copernican Quest Andrew Morrison Dhushyanth Raju Nistha Sinha 103

6 Inequality of Oppurtunity for Education: Turkey Francisco H. G. Ferreira Jérémie Gignoux 131

7 The (Indispensable) Middle Class in Developing Countries Nancy Birdsall 157

8 Outlining a Research Agenda on the Links between Globalization and poverty Ann Harrison Margaret McMillan 189

9 Global Wage Inequality and the International Flow of Migrants Mark R. Rosenzweig 205

10 International Migration and Development Gordon H. Hanson 229

11 The Cliff at the Border Lant Pritchett 263

Index 287

Box

2.1 Millennium Development Goals 18

Figures

2.1 Change in Poverty (MDG1) between 1990 and 2006, Fragile States (CPIA Definition) 22

2.2 Improvements in MDGs between 1990 and 2006, Nonfragile States (CPIA Definition) 23

2.3 Heterogeneity across MDGs 25

2.4 Correlation of Annual Growth Rates, 1990-2006 28