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The advance of economic globalization has led many academics, policy-makers, and activists to warn that it leads to a 'race to the bottom'. In a world increasingly free of restrictions on trade and capital flows, developing nations that cut public services are risking detrimental effects to the populace. Conventional wisdom suggests that it is the poorer members of these societies who stand to lose the most from these pressures on welfare protections, but this new study argues for a more complex conceptualization of the subject. Nita Rudra demonstrates how and why domestic institutions in developing nations have historically ignored the social needs of the poor; globalization neither takes away nor advances what never existed in the first place. It has been the lower- and upper-middle classes who have benefited the most from welfare systems and, consequently, it is they who are most vulnerable to globalization's race to the bottom

How are social protections evolving in the developing world, particularly as those nations confront the challenges of globalization? Scholars in this special issue examine the challenges, continuity, and changes in social protections across the developing world over the last few decades. The common theme that emerges from this informative group of papers is that developing nations are confronting unique politico-economic difficulties as well as opportunities for the development of their welfare programs. This is a vastly understudied topic. The studies in this issue tackle some of the unanswered questions of the globalization–social protection debate in developing economies, with a particular focus on how politics plays into the relationship. These articles hope to initiate a dialogue and offer suggestions for further research in this critical area of study.

Improving access to potable water has become an increasingly urgent concern for developing nations in the current era of globalization. According to standard wisdom, if developing countries undertake certain domestic reforms, such as investing in infrastructure and engineering, then safe and clean drinking water will improve. This analysis uncovers, however, that in addition to such domestic efforts, one of the greatest factors affecting water uncertainty is, in fact, internationally induced: trade. Surprisingly, both scholars and practitioners have neglected the potential impacts of expanding trade on access to potable water. This analysis is the first large- N cross-national study of water that focuses on the interplay of trade and politics—both international and domestic—as the primary driving forces behind improvements in (or constraints to) water access. The author hypothesizes that growing export pressures are constraining drinkable water in poor countries, but a particular domestic condition can mitigate this effect: the existence of lower levels of income inequality. As the socioeconomic actors disadvantaged by openness, particularly in more equal countries, seek reparations for the growing threats to potable water, the adverse affects of trade on water may be averted. Empirical evidence from 77 developing countries and case studies of Vietnam and India provide support for this hypothesis.

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.

This article investigates whether workers in less-developed countries (LDC) are winners or losers in the expanding global economy. This study is distinctive in that it looks beyond the impact of globalization on direct economic benefits to labor (employment & surplus labor) & assesses if workers simultaneously improve their bargaining power in the marketplace. I use a time-series cross sectional panel data set for 59 developing countries from 1972 to 1997 to demonstrate that the overall impact of globalization on labor has been different in countries at various levels of economic development. These results challenge conventional wisdom by revealing that under conditions of globalization, labor in low-income countries is not necessarily in a better bargaining position despite certain economic gains. In contrast, labor in high-income countries enjoys both greater economic benefits & an improved bargaining position. The absolute "winners" in globalization ultimately comprise a small percentage of the larger labor force in the developing world. Tables, Figures, Appendixes, References. Adapted from the source document.