Many economists take it for granted that world income inequality is falling. Simpler versions of neoclassical growth theory assume that average productivity levels and average incomes will converge as capital moves from developed countries to capital-scarce countries of the south. China, post-Mao, is dramatically engaged with the world economy. Export growth has exploded by a massive 500 percent since 1980. China now trusts in exports as the engine of growth and the safety net for a domestic restructuring which has created high levels of urban unemployment.
Decentralisation is trendy.
Enthusiasts in donor agencies and academia see political legitimacy, democratisation, economic efficiency, lean government and poverty reduction as likely consequences of a decentralised government. All rights reserved. The exclusion of a large section of the global population from the benefits of globalisation has been recognised as one of the major challenges of the new century. This failure to deliver a more equitable distribution of the benefits of globalisation is likely to have dire consequences for the stability of world order. This special Alumni edition of the IDS Bulleti n explores the relationship between globalisation, security and development.