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22 See McMillan et al. (2002) on how domestic market imperfections limited farmers’ benefits from liberalization of the cashew sector in Mozambique. 23 On the other hand, China, a country in which corruption is thriving, has attracted large flows of investment, particularly from overseas Chinese who apparently are better at operating in a corrupt system! Corrupt practices by transnational enterprises, often with the connivance of the governments in countries of their origin, have received attention in the literature.

Labor market integration has been similarly underemphasized in the current wave of globalization. As if these two changes were not substantial enough, it is also important to emphasize that globalization alone will not bring about the changes in the economic and institutional environment that are most effective for reducing poverty. It creates additional pressure for such reforms, but these are ultimately domestic decisions. Notes * Samuel C. Park, Jr Professor of Economics, Yale University, New Haven, Connecticut USA.

Sachs, Jeffrey and Andrew Warner (1995) “Economic Reform and the Process of Global Integration,” Brookings Papers on Economic Activity, 1: 1–118. Sen, Amartya (1973) On Economic Inequality, London: Oxford University Press. —— (1976) “Poverty: An Ordinal Approach to Measurement,” Econometrica, 44: 219–231. —— (1981) Poverty and Famines, Oxford: Clarendon Press. —— (1984) Resources, Values and Development, Parts IV and V, Delhi, Oxford University Press. —— (1985) “A Sociological Approach to the Measurement of Poverty: A Reply [Poor, Relatively Speaking],” Oxford Economic Papers, 37(4): 669–676.

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