Globalization, poverty, and inequality: What is the relationship? What can be done?

Summary: The paper studies the relation between globalization, inequality, and marginalization, within and across countries. It reviews the existing evidence on globalization and global inequality and argues, using a simple theoretical model, that the two are inter-connected. It discusses alternative policies to counter extreme poverty and inequality. The paper takes the view that curbing these, even within one country, requires global, cross-country policies that we do not currently have, and advocates the setting up of an international initiative to coordinate such policies. [Copyright &y& Elsevier]