Globalization and Employment: New Opportunities, Real Threats
Panos London | May 1, 1999
Abstract: Globalisation – the move towards a global economy where national borders cease to matter – has changed the face of the world in which we live. World trade alone has grown at an average annual rate of 6.6 per cent during the 1990s, and is expected to add between US$200 billion and US$500 billion to global income by the year 2001. The benefits of globalisation have not been evenly distributed around the world. While the South gained a record US$150 billion in foreign direct investment (FDI) during 1997, the top dozen recipient countries took 80 per cent, leaving the other 136 developing nations only US$30 billion to share between them – less than the United Kingdom alone received during the same period. The trade distribution is worse still. Around 70 per cent of the new wealth generated by trade liberalisation is set to go to the rich countries of the North, while the rest is to be shared between Latin America, China and the ‘upper income’ economies of East Asia. The world’s least developed countries actually stand to lose up to US$600 million a year, while sub-Saharan Africa is set to lose US$1.2 billion a year.
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