1. Globalization, Growth and Poverty David Dollar Development Economics World Bank

2. Globalization and Poverty …all the main parties support nonstop expansion in world trade and services although we all know it … makes rich people richer and poor people poorer… – Walter Schwarz, The Guardian

3. President Fox on Globalization We are convinced that globalization is good and its good when you do your homework… keep your fundamentals in line on the economy, build up high levels of education, respect rule of law… when you do your part, we are convinced that you get the benefit.

4. Zambia Egypt Nigeria Senegal Honduras Togo Kenya Pakistan Brazil India Thailand Bangladesh Malaysia Philippines Argentina Mexico China -1000100 Percent change Change in trade/GDP, 1977-97 (selected countries)

5. Developing country exports have shifted toward manufactures 0 20 40 60 80 Agriculture Minerals Manufactures 1965197019751980198519901995 Share

6. I ncrease in trade/GDP: 1970s to 1990s 0% 25% 50% 75% 100% Non-globalizersRich countriesGlobalizers -18% 71% 104%

7. Growth in globalizers accelerated as integration proceeded 1.4% 2.9% 3.5% 5.0% 0% 2% 4% 6% 1960s1970s1980s1990s

8. Convergence and divergence in the 1990s -1% 2% 5% 2% 4% 6% Less globalized countries Rich countriesMore globalized countries GDP per capita growth rates, 1990s (ppp) 0

9. Poverty reduction in Bangladesh, India, Uganda, Vietnam, and China closely related to growth Percent per annum, 1992-98 3.3* 4.4 3.8 6.4 9.9 0 2 4 6 8 10 BangladeshIndiaUgandaVietnamChina GDP per capita growth rate 2.1* 5.4** 5.9 7.5 8.4 Poverty reduction * Bangladesh figures are for 1992-2000 ** India figures are for 1993-99

10. 20% 30% 40% 6.546.646.746.846.947.047.147.247.347.447.54 Per capita household consumption 1993 (log scale) Share of 6-15 year olds working 1993 1998 Child labor and household consumption levels in Vietnam

11. Poor countries that globalized have seen the fastest growth in wages 0 10 20 30 Less globalized countries Rich countriesMore globalized countries Wage growth between 1980s and 1990s (percent)

12. Maritime transport to the U.S. (East Coast): textiles MombasaBombayShanghaiBangkokKao Hsiung Costs as share of value of exports (8,452)(10,319) (11,222) (10,631) 0 0.04 0.08 0.12 0.16 (8,360)

13. Quantifying bottlenecks: Days to clear imported inputs through customs 0 4 8 12 10.6 7.0 India Korea Thailand 6.7 21.0 9.2 10.6 0 10 20 India Shanghai Last time Longest 7.8 China

14. Uttar Pradesh West Bengal Kerala DelhiPunjab Tamil Nadu KarnatakaAndhra Pradesh GujaratMaharashtra Investment rate (percentage), 1999 -4 -2 0 2 4 6 8 10 Good Poor Investment climate by state Investment climate makes a big difference

15. 1820184018601880190019201940196019802000 800 1,000 1,200 1,400 Number of people living on less than $1 per day (millions) Poverty has dropped by 200 million over past 20 years, despite world population increased of 1.6 billion. Number of very poor has fallen since 1980

16. Globalization: Agenda for Action Development round on market access Improving the investment climate Strengthening education, health and social protection More – and better – aid (including debt relief)