Financial globalisation and human development

Singh, Ajit (2011): Financial globalisation and human development. Published in: Centre for Business Research Working Paper Series No. WP421 (June 2011)

Abstract

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 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 micro-economic factors outlined here influence human development.

• Item Type: MPRA Paper
• Language: English
• Keywords: Financial globalisation, poverty, income distribution and employment, capital account liberalisation
• Subjects: I - Health, Education, and Welfare > I0 - General; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents

References

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