Globalisation, Structural Change and Poverty-Some Conceptual and Policy Issues

Globalisation embodies integration of international markets for goods, services, technology, finance and to some extent labour. It impinges on the process of structural change, underpinned by transformation from an agricultural to an industrial economy, with critical implications for growth, equity and poverty. In this context, structural adjustment or 'liberalisation' policies, symbolising measures to stimulate structural change by reorganising production, focus on shifting emphasis from the state to the market and forging closer interaction between the national (domestic) and the global economy. In this respect, the goals and implications of structural adjustment policies (SAP)/liberalisation have to be redefined and reassessed in the context of globalisation. The thrust of this paper is on analysing the relationship between SAP/liberalisation, globalisation and reduction of poverty.