The debate on globalization, poverty and inequality: why measurement matters

This paper provides a non-technical overview of the conceptual and methodological issues underlying the conflicting claims on just how much progress is being made against poverty andinequality in the current period of “globalization.”

The paper argues that the dramatically differing positions taken in this debate often stem from differences in the concepts and definitions used and differences in data sources and measurementassumptions. These differences are often hidden from view in the debate, but they need to be considered carefully if one is to properly interpret the evidence. The paper argues that the bestavailable evidence suggests that, if the rate of progress against absolute poverty in the developing world in the 1990s is maintained, then the Millennium Development Goal of halvingthe 1990 aggregate poverty rate by 2015 will be achieved on time in the aggregate, though not in all regions.

The paper concludes with some observations on the implications for policy-oriented debates on globalization and pro-poor growth. The author argues that the real challenge facing policy makers is how to redress the antecedent inequalities of opportunity within developing countries as they open up to external trade to ensure the poverty-reducing potential of globalization is realized. [adapted from author]