ECON 255 Lecture Notes - Lecture 5: Renminbi, World Trade Organization
Document Summary
The arguments (to support the notion that globalization reduces poverty) Argument #1: global poverty has actually decreased this is based on the growth in. India and china who have the poorest population empirically: economic growth tends to be correlated with poverty reduction. Argument #2: countries that have experienced the greatest integration with the world economy have managed to grow fastest and reduce poverty the most. Violated the rule set by international institutions example: did not liberalize its trade (only joined wto in 2001), chinese currency were not unified until 1994, China refused to open financial market to foreigners, managed to achieve transformation without adopting private-property rights or privatizing its state enterprise. Despite breaking all laws possible, china still manage to integrate its economy. South korea and taiwan: made an extensive use of import quotas, local content requirements, patent infringements and export subsidies and capital flows heavily regulated everything prohibited by wto.