The advance of economic globalization 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 conceptualization 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 globalization's
race to the bottom.
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