Globalisation, Labour Standards and Economic Development [unknown]

Ajit Singh, Ann Zammit
The Handbook of Globalisation, Second Edition   unpublished
This paper is concerned essentially with the question, how does financial globalisation affect welfare? Orthodox theory suggests that because of greater risk-sharing between countries that financial liberalisation entails, there should be no welfare losses. Greater risk sharing should lead to greater smoothing of consumption and/or growth trajectories for developing countries. Yet there is widespread evidence of crises following liberalisation. Apart from these international macro-economic
more » ... macro-economic issues, it is argued here that financial globalization changes the very nature of capitalism from managerial to finance capitalism. This profoundly affects at the micro-economic level corporate governance, corporate finance and income distribution. Both macro-and microeconomic factors outlined here influence human development. JEL Codes: H3, I0
doi:10.4337/9780857931443.00021 fatcat:7ifu7iqqmbgb7gmgiodkknmddu