Trouble for Workers and the Poor: Economic Globalization and the Reshaping of American Politics
In recent decades in the United States, even as inequalities of income and wealth have greatly increased, redistributive programs have tended to be curtailed. In some cases, government policies have begun to exacerbate, rather than moderate, inequality. Since this has occurred not only under the Republican Reagan and Bush administrations, but also in the Democratic Carter and Clinton administrations, it suggests that the politics of redistribution may have been fundamentally transformed. Moreover, evidence from aborad indicates that there has been a shift away from redistributive policies throughout the advanced industrial world. The implications of this trend and the prognosis for the future depend upon its precise political causes. To the extent that it has resulted from changes in contingent political forces -- especially increases in the political power of capital and concomitant losses of power by labor, together with much stronger anti-redistributive stands by business -- one can imagine a revival of redistribution, based on increased organization, mobilization, and political struggle by working people and the poor. Some signs of such struggle have in fact appeared. To the extent that the trend is structural, however -- based on changed technology and such international economic factors as lower trade barriers, extensive immigration, lower transportation and communication costs, and increased capital mobility -- the heightened power of capital and weakness of labor are likely to persist for a long time to come. Moreover, economic globalization may be making it more and more difficult for governments to redistribute income without counterproductive effects such as capital flight, loss of export competitiveness, and increased immigration of low-income people. Thus economic globalization may gravely impair, or even eliminate, the capacity -- as well as the will -- of nation-states to redistribute income or wealth within their boundaries. If this is so, remedies will be hard to come by. The logic of economic globalization implies that only global remedies will work. It is possible that only worldwide organization by workers, or universally applicable treaties and agreements, could effectively check (let alone reverse) increases in income inequality in advanced industrial countries. But such solutions would arouse intense political opposition and would probably face conflicts of interest between workers in rich and poor countries.
Does globalization always increase inequality? An econometric analysis in Bangladesh perspective
Over the past twenty years or so, Bangladesh moved firmly to embrace the wave of globalization. At present, when we concentrate on the country's income distribution, it opens a downbeat aspect of globalization. But virtually limited empirical studies examined the relationship between inequality and globalization in Bangladesh perspective. The paper considers the impact of globalization using its two proxies – foreign direct investment and trade openness – on Bangladesh entire income distribution. It also tries to find out whether gross domestic product, inflation rate and female participation in labor force have any influential effect on the income inequality. We use panel data for 26 years from 1980 to 2005 to perform the econometric analysis. The analysis reveals that globalization deteriorates inequality and its discriminating effect depends on the level of development of the country, also the increased participation of women in labor force significantly reduces inequality.
Fiscal Transparency in EU Accession Countries Progress and Future Challenges
This paper discusses the findings of fiscal transparency reports on standards and codes (ROSCs) for most EU accession candidate countries. Emphasis is given to the need to establish effective and accountable medium-term budget frameworks to establish policy credibility and anchor adjustment programs to meet EU fiscal goals. Adoption of budgeting and accounting standards consistent with the IMF Government Finance Statistics Manual 2001 framework will also help link budget decisions to EU standards of fiscal reporting. More consistent and comprehensive coverage of off-budget activities is needed for assessing fiscal risk and sustainability. Finally, local government issues need to be addressed by many of these countries since EU fiscal goals are set with reference to general government. Progress in all of these areas can be monitored by keeping fiscal ROSC assessments up to date.