Globalization and the Race to the Bottom in Developing Countries Who Really Gets Hurt?

ISBN-10: 0521715032
ISBN-13: 9780521715034
Edition: 2008
Authors: Nita Rudra
List price: $45.99 Buy it from $6.89
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Description: The advance of economic globalisation has led many academics, policy-makers and activists to warn that it leads to a 'race to the bottom'. In a world increasingly free of restrictions on trade and capital flows, developing nations that cut public  More...

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Book details

List price: $45.99
Copyright year: 2008
Publisher: Cambridge University Press
Publication date: 9/25/2008
Binding: Paperback
Pages: 314
Size: 6.00" wide x 8.75" long x 0.75" tall
Weight: 1.100

The advance of economic globalisation has led many academics, policy-makers and activists to warn that it leads to a 'race to the bottom'. In a world increasingly free of restrictions on trade and capital flows, developing nations that cut public services are risking detrimental effects to the populace. Conventional wisdom suggests that it is the poorer members of these societies who stand to lose the most from these pressures on welfare protections, but this new study argues for a more complex conceptualisation of the subject. Nita Rudra demonstrates how and why domestic institutions in developing nations have historically ignored the social needs of the poor; globalization neither takes away nor advances what never existed in the first place. It has been the lower- and upper-middle classes who have benefited the most from welfare systems and, consequently, it is they who are most vulnerable to globalisation's race to the bottom.

Nita Rudra is an Assistant Professor of International Affairs in the Graduate School of Public and International Affairs at the University of Pittsburgh.

List of figures
List of tables
Preface
Introduction
Globalization and the race to the bottom debate: the fundamental concern
The focus and plan of the book
Contributions
The race to the bottom in developing countries
Existing literature on the globalization-welfare state nexus
Globalization, labor and the race to the bottom in developing countries
The evidence
Contrasting trends in globalization and welfare: rich versus poor nations
LDC labor in a globalizing economy
Model specification
The variables
Results
Summary
Who really gets hurt?
Importance of the distributive effects of social spending in developing nations
Links between globalization, welfare spending, and inequality in OECD countries
The link between globalization, welfare spending, and inequality in LDCs
The base model: the effects of globalization and social spending on income distribution
The dependent variable: income distribution
Independent variables
Results
Globalization and prospects for equity-enhancing reform
Robustness checks
Interpretation of results: the role of government-labor relations, information, and interests
Summary
LDC welfare states: convergence? What are the implications?
Welfare states in developing countries? The existing literature
Contemplating systematic divergence in LDCs: patterns of welfare regimes
Questioning CPE convergence: why LDCs are likely to have welfare states
Questioning IPE convergence: twentieth-century globalization and different LDC welfare regimes
Delineating different welfare regimes in developing countries
Cluster analysis: testing contrasting hypotheses
Analysis results
Robustness checks
Initial interpretation of the results
Implications
Globalization and the protective welfare state: case study of India
India's protective welfare state
Race to the bottom?
Social security
Health care and education
Summary
Institutional change
Welfare regime change?
Mediating role of domestic institutions
Who really gets hurt?
Social security
Health care
Education
Summary
Other factors: democracy, ethnic fragmentation, and culture
Implications
Globalization and the productive welfare state: case study of South Korea
South Korea's productive welfare state
Race to the bottom
Social security
Labor market protections
Summary
Institutional change
Welfare regime change?
Mediating role of domestic institutions
Who really gets hurt?
Labor market protections
Social security (and social assistance)
Health care
Education
Summary
Other factors: democracy, civil society groups, and Japanese influences
Implications
Globalization and the dual welfare state: case study of Brazil
Brazil's weak dual welfare state
Decommodification policies
Commodification policies
Race to the bottom
Social security
Labor market protections
Health care
Education
Summary
Institutional change
Welfare regime change?
Mediating role of domestic institutions
Who really gets hurt?
Social security and labor market protections (and social assistance)
Health care
Education
Summary
Other factors: democracy and partisanship
Implications
Conclusions
The case studies in perspective: globalization, domestic institutions, and social policies
Questioning prevailing assumptions and future research
Rethinking the trade-off between states and markets in developing economies
Rethinking the political economies of developing countries
Rethinking the capital-labor dichotomy
Broader questions for future research
Prospects for the future?
LDC social spending
Assessing potential labor power
Additional tests for the RTB hypothesis
Variables in the inequality model
Technical notes on Gini coefficients
LDC Gini coefficient statistics
Robustness check
Conditional impact of trade on inequality
Descriptions and sources of variables
Cluster results minus outcome variables
Dendrogram for cluster analysis
Poverty tables
Social expenditures on social security, health, and education in India (percent of GDP) based on national data
References
Index

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