sure they can bring to bear on the regime for fear that it will provoke a backlash and the very c... more sure they can bring to bear on the regime for fear that it will provoke a backlash and the very challenge to the American imperium that they hope to avoid. The international balance hangs on the domestic balance between the forces of resistance in China currently vested in the state and popular forces of reform calling for greater rule of law. Without significant private authorities able to help the masses overcome their collective action problems, the vested interests are likely to prevail and the challenge to the American imperium is likely to be serious. What is to be done? Increased trade and investment by the West with China is incentive compatible, and may eventually "tip" the political balance in China in a more liberal direction or at least mitigate the interests now vested in a more politically based system. Confrontation with China will only reinforce those who would seek a Chinese Asian Co-prosperity Sphere. The United States and others should do everything possible to encourage the rule of law and price-led market incentives in China. At the same time, the optimal strategy toward China-no matter its internal fissures-is to maintain the power and resilience of the American imperium, including strengthening relations with other members. Maintaining a strong and open international economy that China wants to be part of-and maintaining a unified front in enforcing the rules of that economy-will maximize leverage for all over China's future and the fate of its possible challenge.
Can globalization change our willingness to redistribute to the poor? We propose the hypothesis t... more Can globalization change our willingness to redistribute to the poor? We propose the hypothesis that in developing countries, the ‘glitter’ of foreign direct investment (FDI) reduces public support for redistribution by creating perceptions of better employment opportunities for the poor. Initial evidence is derived from World Value Survey responses from developing economies. Delving deeper, a framed field experiment in India reveals foreign ownership of low-skilled firms reduces redistribution to the poor. We further find that rich conservatives drive this reduction. This analysis provides the first experimental evidence of the causal impact of globalization on redistribution, mediated by ideology and income.
Thus, the studies included in this symposium tackle some of the unanswered questions of the globa... more Thus, the studies included in this symposium tackle some of the unanswered questions of the globalization-poverty debate, with a particular focus on how politics plays into the relationship between the two. These articles do not necessarily aim to provide answers; rather, they hope to initiate a dialog and offer suggestions for further research in areas that have so far been understudied.
Abstract In recent years, the volume and intensity of attacks on globalization have been steadily... more Abstract In recent years, the volume and intensity of attacks on globalization have been steadily rising. It is frequently argued that the antiglobalization backlash stems from strains that have been placed on the compromise of embedded liberalism. We argue that existing research underemphasizes how technological change and the digital revolution have contributed to these strains. Global value chains facilitated by the digital revolution have linked technology in advanced industrial countries to low-cost labor in developing countries, precipitating distributional losses for low-skilled labor in the industrial world. Further, the digital revolution has led to regulatory challenges involving both capital and labor. We argue that, as a result, governments face both mounting opposition to globalization and heightened difficulty in supporting the programs and policies necessary to buffer the adverse domestic effects of globalization and maintain support for embedded liberalism.
... useful. Inessa Love kindly provided us statistical code. All errors are our own. 1 Page 2. ..... more ... useful. Inessa Love kindly provided us statistical code. All errors are our own. 1 Page 2. ... 6 Page 7. (Pierson XXX), and institutional complementarities that reinforce comparative (institutional) advantages (Hall and Soskice 2001). In ...
The literature on the effects of globalization on social policy and welfare, and the parallel lit... more The literature on the effects of globalization on social policy and welfare, and the parallel literature on the effects of democracy, operate in mutual isolation to a surprising degree. This article extends the debate on the welfare state in the developing world by examining the social policy reactions of democratic and authoritarian governments to globalization. Using unbalanced panel data on 57 developing nations, and considering social security and health and education spending, the authors examine whether democratic and authoritarian regimes exhibit similar or different social spending priorities in the context of increasing economic openness. The results show that social spending in "hard" authoritarian regimes is more sensitive to the pressures of globalization than in democratic or intermediate regimes.
Why are governments of less developed countries prioritizing market-oriented policies over social... more Why are governments of less developed countries prioritizing market-oriented policies over social objectives? Existing research finds that developing-country governments are reducing the share of budgets allocated to social programs in response to global economic pressures (i.e., 'racing to the bottom'). The problem is that scholars treat the domestic politics supporting government reduction in welfare commitment rather abstractly. The implicit assumption
Abstract: Surprisingly little research investigates the effects of foreign direct investment (FDI... more Abstract: Surprisingly little research investigates the effects of foreign direct investment (FDI) on the well-being of the poor. This study seeks to fill this gap by analyzing the impacts of FDI on access to potable water. Evaluating improvements (or not) to the provision of potable ...
Do varieties of welfare capitalism exist in the developing world? This analysis challenges schola... more Do varieties of welfare capitalism exist in the developing world? This analysis challenges scholars of comparative political economy and international political economy who treat the political economies of less developed countries (LDCs) as more or less identical to one another or, at the other extreme, as nations marked by tremendous diversity. This paper is one of the first attempts to highlight systematic differences among the political economies of the developing world, particularly with respect to their distribution regimes. Using cluster analysis, the results illustrate that welfare efforts in LDCs are either directed towards promoting market development (a productive welfare state), protecting select individuals from the market (a protective welfare state) or both (a dual welfare state). The discovery of distinct patterns of welfare regimes in LDCs presents hitherto unknown implications for the influence of domestic politics and policies in late twentieth-century globalization. Rudra 4 Existing scholarship overlooks the possibility of varieties of welfare capitalism in the developing world. In contrast, discussions abound regarding identifiable and systematic differences in domestic institutional arrangements within the advanced capitalist countries, particular with respect to their distribution regimes. Is it feasible that distribution regimes of relatively poor countries also fall into distinct patterns? By implication or design, studies in comparative political economy (CPE) and international political economy (IPE) treat less developed countries (LDCs) as more or less identical to one another or, at the other extreme, as nations marked by tremendous politico-economic diversity. It is startling that neither scholars nor policy-makers have a clear sense of 'peer groups' among developing nations, outside of broad, amorphous categories such as region or level of economic development. This analysis challenges long-standing conceptions of LDC political economies by providing theoretical and empirical support for 'systematic divergence' in their choice set of social welfare policies. The discovery of distinct patterns of welfare regimes in LDCs presents hitherto unknown implications for the influence of domestic politics and policies in late twentieth-century globalization.
Abstract: Surprisingly little research investigates the effects of foreign direct investment (FDI... more Abstract: Surprisingly little research investigates the effects of foreign direct investment (FDI) on the well-being of the poor. This study seeks to fill this gap by analyzing the impacts of FDI on access to potable water. Evaluating improvements (or not) to the provision of potable ...
Do varieties of welfare capitalism exist in the developing world? This analysis challenges schola... more Do varieties of welfare capitalism exist in the developing world? This analysis challenges scholars of comparative political economy and international political economy who treat the political economies of less developed countries (LDCs) as more or less identical to one another or, at the other extreme, as nations marked by tremendous diversity. This paper is one of the first attempts to highlight systematic differences among the political economies of the developing world, particularly with respect to their distribution regimes. Using cluster analysis, the results illustrate that welfare efforts in LDCs are either directed towards promoting market development (a productive welfare state), protecting select individuals from the market (a protective welfare state) or both (a dual welfare state). The discovery of distinct patterns of welfare regimes in LDCs presents hitherto unknown implications for the influence of domestic politics and policies in late twentieth-century globalization. Rudra 4 Existing scholarship overlooks the possibility of varieties of welfare capitalism in the developing world. In contrast, discussions abound regarding identifiable and systematic differences in domestic institutional arrangements within the advanced capitalist countries, particular with respect to their distribution regimes. Is it feasible that distribution regimes of relatively poor countries also fall into distinct patterns? By implication or design, studies in comparative political economy (CPE) and international political economy (IPE) treat less developed countries (LDCs) as more or less identical to one another or, at the other extreme, as nations marked by tremendous politico-economic diversity. It is startling that neither scholars nor policy-makers have a clear sense of 'peer groups' among developing nations, outside of broad, amorphous categories such as region or level of economic development. This analysis challenges long-standing conceptions of LDC political economies by providing theoretical and empirical support for 'systematic divergence' in their choice set of social welfare policies. The discovery of distinct patterns of welfare regimes in LDCs presents hitherto unknown implications for the influence of domestic politics and policies in late twentieth-century globalization.
Scholars and policy makers have long assumed that trade and financial liberalization encourages d... more Scholars and policy makers have long assumed that trade and financial liberalization encourages developing countries to become more democratic; yet no one has developed formal hypotheses about the causal relationship between globalization and democracy. This article shows that these two trends are indeed related, but not necessarily in the direct manner that has commonly been postulated. Combining theories of embedded liberalism and conflict-based theories of democracy, the model presented here depicts the process that affects decisions to strengthen democracy as trade and capital flows increase. I argue that increasing exposure to international export and financial markets leads to improvements in democracy if safety nets are used simultaneously as a strategy for providing stability and building political support. Empirical evidence is provided by econometric analysis covering 59 developing countries for the time period 1972–97.
The literature on the effects of globalization on social policy and welfare, and the parallel lit... more The literature on the effects of globalization on social policy and welfare, and the parallel literature on the effects of democracy, operate in mutual isolation to a surprising degree. This article extends the debate on the welfare state in the developing world by examining the social policy reactions of democratic and authoritarian governments to globalization. Using unbalanced panel data on 57 developing nations, and considering social security and health and education spending, the authors examine whether democratic and authoritarian regimes exhibit similar or different social spending priorities in the context of increasing economic openness. The results show that social spending in "hard" authoritarian regimes is more sensitive to the pressures of globalization than in democratic or intermediate regimes.
... and welfare, which captures traditional transfers and pensions, as well as education and heal... more ... and welfare, which captures traditional transfers and pensions, as well as education and health. ... and provides some sense of the overall magnitude of governments' fiscal commitment to ... If welfarespending is redistributive, then the coefficients of the three public expenditure ...
sure they can bring to bear on the regime for fear that it will provoke a backlash and the very c... more sure they can bring to bear on the regime for fear that it will provoke a backlash and the very challenge to the American imperium that they hope to avoid. The international balance hangs on the domestic balance between the forces of resistance in China currently vested in the state and popular forces of reform calling for greater rule of law. Without significant private authorities able to help the masses overcome their collective action problems, the vested interests are likely to prevail and the challenge to the American imperium is likely to be serious. What is to be done? Increased trade and investment by the West with China is incentive compatible, and may eventually "tip" the political balance in China in a more liberal direction or at least mitigate the interests now vested in a more politically based system. Confrontation with China will only reinforce those who would seek a Chinese Asian Co-prosperity Sphere. The United States and others should do everything possible to encourage the rule of law and price-led market incentives in China. At the same time, the optimal strategy toward China-no matter its internal fissures-is to maintain the power and resilience of the American imperium, including strengthening relations with other members. Maintaining a strong and open international economy that China wants to be part of-and maintaining a unified front in enforcing the rules of that economy-will maximize leverage for all over China's future and the fate of its possible challenge.
Can globalization change our willingness to redistribute to the poor? We propose the hypothesis t... more Can globalization change our willingness to redistribute to the poor? We propose the hypothesis that in developing countries, the ‘glitter’ of foreign direct investment (FDI) reduces public support for redistribution by creating perceptions of better employment opportunities for the poor. Initial evidence is derived from World Value Survey responses from developing economies. Delving deeper, a framed field experiment in India reveals foreign ownership of low-skilled firms reduces redistribution to the poor. We further find that rich conservatives drive this reduction. This analysis provides the first experimental evidence of the causal impact of globalization on redistribution, mediated by ideology and income.
Thus, the studies included in this symposium tackle some of the unanswered questions of the globa... more Thus, the studies included in this symposium tackle some of the unanswered questions of the globalization-poverty debate, with a particular focus on how politics plays into the relationship between the two. These articles do not necessarily aim to provide answers; rather, they hope to initiate a dialog and offer suggestions for further research in areas that have so far been understudied.
Abstract In recent years, the volume and intensity of attacks on globalization have been steadily... more Abstract In recent years, the volume and intensity of attacks on globalization have been steadily rising. It is frequently argued that the antiglobalization backlash stems from strains that have been placed on the compromise of embedded liberalism. We argue that existing research underemphasizes how technological change and the digital revolution have contributed to these strains. Global value chains facilitated by the digital revolution have linked technology in advanced industrial countries to low-cost labor in developing countries, precipitating distributional losses for low-skilled labor in the industrial world. Further, the digital revolution has led to regulatory challenges involving both capital and labor. We argue that, as a result, governments face both mounting opposition to globalization and heightened difficulty in supporting the programs and policies necessary to buffer the adverse domestic effects of globalization and maintain support for embedded liberalism.
... useful. Inessa Love kindly provided us statistical code. All errors are our own. 1 Page 2. ..... more ... useful. Inessa Love kindly provided us statistical code. All errors are our own. 1 Page 2. ... 6 Page 7. (Pierson XXX), and institutional complementarities that reinforce comparative (institutional) advantages (Hall and Soskice 2001). In ...
The literature on the effects of globalization on social policy and welfare, and the parallel lit... more The literature on the effects of globalization on social policy and welfare, and the parallel literature on the effects of democracy, operate in mutual isolation to a surprising degree. This article extends the debate on the welfare state in the developing world by examining the social policy reactions of democratic and authoritarian governments to globalization. Using unbalanced panel data on 57 developing nations, and considering social security and health and education spending, the authors examine whether democratic and authoritarian regimes exhibit similar or different social spending priorities in the context of increasing economic openness. The results show that social spending in "hard" authoritarian regimes is more sensitive to the pressures of globalization than in democratic or intermediate regimes.
Why are governments of less developed countries prioritizing market-oriented policies over social... more Why are governments of less developed countries prioritizing market-oriented policies over social objectives? Existing research finds that developing-country governments are reducing the share of budgets allocated to social programs in response to global economic pressures (i.e., 'racing to the bottom'). The problem is that scholars treat the domestic politics supporting government reduction in welfare commitment rather abstractly. The implicit assumption
Abstract: Surprisingly little research investigates the effects of foreign direct investment (FDI... more Abstract: Surprisingly little research investigates the effects of foreign direct investment (FDI) on the well-being of the poor. This study seeks to fill this gap by analyzing the impacts of FDI on access to potable water. Evaluating improvements (or not) to the provision of potable ...
Do varieties of welfare capitalism exist in the developing world? This analysis challenges schola... more Do varieties of welfare capitalism exist in the developing world? This analysis challenges scholars of comparative political economy and international political economy who treat the political economies of less developed countries (LDCs) as more or less identical to one another or, at the other extreme, as nations marked by tremendous diversity. This paper is one of the first attempts to highlight systematic differences among the political economies of the developing world, particularly with respect to their distribution regimes. Using cluster analysis, the results illustrate that welfare efforts in LDCs are either directed towards promoting market development (a productive welfare state), protecting select individuals from the market (a protective welfare state) or both (a dual welfare state). The discovery of distinct patterns of welfare regimes in LDCs presents hitherto unknown implications for the influence of domestic politics and policies in late twentieth-century globalization. Rudra 4 Existing scholarship overlooks the possibility of varieties of welfare capitalism in the developing world. In contrast, discussions abound regarding identifiable and systematic differences in domestic institutional arrangements within the advanced capitalist countries, particular with respect to their distribution regimes. Is it feasible that distribution regimes of relatively poor countries also fall into distinct patterns? By implication or design, studies in comparative political economy (CPE) and international political economy (IPE) treat less developed countries (LDCs) as more or less identical to one another or, at the other extreme, as nations marked by tremendous politico-economic diversity. It is startling that neither scholars nor policy-makers have a clear sense of 'peer groups' among developing nations, outside of broad, amorphous categories such as region or level of economic development. This analysis challenges long-standing conceptions of LDC political economies by providing theoretical and empirical support for 'systematic divergence' in their choice set of social welfare policies. The discovery of distinct patterns of welfare regimes in LDCs presents hitherto unknown implications for the influence of domestic politics and policies in late twentieth-century globalization.
Abstract: Surprisingly little research investigates the effects of foreign direct investment (FDI... more Abstract: Surprisingly little research investigates the effects of foreign direct investment (FDI) on the well-being of the poor. This study seeks to fill this gap by analyzing the impacts of FDI on access to potable water. Evaluating improvements (or not) to the provision of potable ...
Do varieties of welfare capitalism exist in the developing world? This analysis challenges schola... more Do varieties of welfare capitalism exist in the developing world? This analysis challenges scholars of comparative political economy and international political economy who treat the political economies of less developed countries (LDCs) as more or less identical to one another or, at the other extreme, as nations marked by tremendous diversity. This paper is one of the first attempts to highlight systematic differences among the political economies of the developing world, particularly with respect to their distribution regimes. Using cluster analysis, the results illustrate that welfare efforts in LDCs are either directed towards promoting market development (a productive welfare state), protecting select individuals from the market (a protective welfare state) or both (a dual welfare state). The discovery of distinct patterns of welfare regimes in LDCs presents hitherto unknown implications for the influence of domestic politics and policies in late twentieth-century globalization. Rudra 4 Existing scholarship overlooks the possibility of varieties of welfare capitalism in the developing world. In contrast, discussions abound regarding identifiable and systematic differences in domestic institutional arrangements within the advanced capitalist countries, particular with respect to their distribution regimes. Is it feasible that distribution regimes of relatively poor countries also fall into distinct patterns? By implication or design, studies in comparative political economy (CPE) and international political economy (IPE) treat less developed countries (LDCs) as more or less identical to one another or, at the other extreme, as nations marked by tremendous politico-economic diversity. It is startling that neither scholars nor policy-makers have a clear sense of 'peer groups' among developing nations, outside of broad, amorphous categories such as region or level of economic development. This analysis challenges long-standing conceptions of LDC political economies by providing theoretical and empirical support for 'systematic divergence' in their choice set of social welfare policies. The discovery of distinct patterns of welfare regimes in LDCs presents hitherto unknown implications for the influence of domestic politics and policies in late twentieth-century globalization.
Scholars and policy makers have long assumed that trade and financial liberalization encourages d... more Scholars and policy makers have long assumed that trade and financial liberalization encourages developing countries to become more democratic; yet no one has developed formal hypotheses about the causal relationship between globalization and democracy. This article shows that these two trends are indeed related, but not necessarily in the direct manner that has commonly been postulated. Combining theories of embedded liberalism and conflict-based theories of democracy, the model presented here depicts the process that affects decisions to strengthen democracy as trade and capital flows increase. I argue that increasing exposure to international export and financial markets leads to improvements in democracy if safety nets are used simultaneously as a strategy for providing stability and building political support. Empirical evidence is provided by econometric analysis covering 59 developing countries for the time period 1972–97.
The literature on the effects of globalization on social policy and welfare, and the parallel lit... more The literature on the effects of globalization on social policy and welfare, and the parallel literature on the effects of democracy, operate in mutual isolation to a surprising degree. This article extends the debate on the welfare state in the developing world by examining the social policy reactions of democratic and authoritarian governments to globalization. Using unbalanced panel data on 57 developing nations, and considering social security and health and education spending, the authors examine whether democratic and authoritarian regimes exhibit similar or different social spending priorities in the context of increasing economic openness. The results show that social spending in "hard" authoritarian regimes is more sensitive to the pressures of globalization than in democratic or intermediate regimes.
... and welfare, which captures traditional transfers and pensions, as well as education and heal... more ... and welfare, which captures traditional transfers and pensions, as well as education and health. ... and provides some sense of the overall magnitude of governments' fiscal commitment to ... If welfarespending is redistributive, then the coefficients of the three public expenditure ...
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Papers by Nita Rudra