Self-Driven Globalization Will Not Reduce Poverty- Lecturer Contends

from All Africa

Public Agenda (Accra)

By Ebenezer Hanson

A Political Science lecturer at the University of Ghana, Dr. Amos Anyimadu, has argued that self-driven globalization per se will not automatically lead to poverty reduction unless conscious steps are taken in that direction.

As some of the measures, he proposes that developing countries should improve on good governance, protect their local spaces and take stock of their competitive advantage.

"Globalization has to be managed and not allowed to be self-driven, else the much-talked about poverty reduction will continue to remain a distant dream," he said in an exclusive interview with the Public Agenda at the six-day UNCTAD XII conference which ended last Friday in Accra.

The conference was under the theme "Addressing the Opportunities and Challenges of Globalization for Development"

Dr. Anyimadu agrees with speakers at the conference that globalization has certain harmful effects, including gender and social aspects. " Globalization has reinforced the existing gender gap between males and females. It has deepened inequalities," one participant earlier said during a debate on "Globalization, Development and Poverty Reduction".

UNCTAD Statistics reveals that developing countries are losing out massively in virtually all fronts in the globalized world. For instance, the world gross domestic product (GDP) grew by an average rate of 3% a year between 2000 and 2006, and world trade in goods by 6.6%. The recent phase of globalization has resulted in wider distribution of gains, with real GDP per capita in developing countries increasing from $812 in 1980 to $ 1621 in 2006.

However, the facts sheet notes that despite the improvements, the relative gap in living standards between the developed and developing countries remains large. In 2006, the per capita income of the developed countries was 18 times that of developing countries. In 1980, it was 23 times higher. The recent progress mainly reflects rapid economic advances in East and South Asia.

Again in the last five years, annual economic growth in African countries has averaged between 5 and 6%. However, the difference in average income between Europe and Africa continues to increase. GDP per capita was $1160 in Africa in 2006, $ 914 in Sub-Saharan Africa and US $31,622 in Europe.

Global foreign direct investment (FDI) inflows totaled $1,306 billion in 2006, rising more than 38% from 2005 and nearly reaching the record level of 2000.