Global Development And Poverty Reduction: The Challenge For by John-ren Chen (Editor), David Sapsford (Editor)

By John-ren Chen (Editor), David Sapsford (Editor)

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Extra info for Global Development And Poverty Reduction: The Challenge For International Institutions (International Institutions and Global Governance)

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The state can also play an important complementary role, such as by providing public goods, by correcting market failure or by enforcing economic activity of the private actors. Thereby government of a sovereign state is made responsible for the success of its development policy and for the performance of its economy. Integration of a national economy in the global world market can improve efficiency in resource allocation of both the national economy under consideration and the global economy.

IIs can therefore play an important role in the economic development of the DW by providing such global public goods. Theoretical and empirical study of development economics has provided a series of fundamental theorems as well as a set of stylized facts which should be considered for proposing development policy. Among them, without claiming any causality, it appears that industrialization has been accompanied by both increase in and stabilization of income and, in its turn, also reduction in poverty (see, for examples, Kuznets, 1966).

B. c. d. Most current economies of the world, both in IW and DW, are mainly based on the functioning markets. Private agents are the main actors in a market economy. The state can also play an important complementary role, such as by providing public goods, by correcting market failure or by enforcing economic activity of the private actors. Thereby government of a sovereign state is made responsible for the success of its development policy and for the performance of its economy. Integration of a national economy in the global world market can improve efficiency in resource allocation of both the national economy under consideration and the global economy.

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