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Extra resources for Annual World Bank Conference on Development Economics, Part 489
We now have enough evidence to say with reasonable confidence that globalization is here to stay. But we need to think more about the implications of that fact-for the Bank and, particularly, for our primary clients, the 4 billion people who live in the world's low- and middle-income countries. The new global economy presents an array of questions to which we will admit-if we are honest-that we do not have all the answers: Yes, private capital flows to developing countries have quadrupled so far in this decade.
Our main role must remain helping more and more countries, particularly the poorest, join the mainstream of the new global economy: building markets, gaining access to private capital, and reducing poverty. But our future effectiveness is very much linked to the ''how" questions: How we can do more to leverage our analytical output by improving the dissemination of our cross-country experience and lessons learned. How we can do more to bridge the gap between policy formulation and implementation by helping countries establish the institutions, incentives, and rules of the game necessary to make them players in the new global economy.
But the unemployment rate does not reflect a drop in total employment. Rather, it mirrors the large increase in the labor force participation rate. In fact, total urban employment grew by about 515,000 new workers between 1990 and 1994 while the total urban labor supply increased by 1,290,000 people. Whether the increase is due to a reversal of the ''discouraged worker" effect or the response to higher potential earnings is still an open issue. Some estimates put the real wage increase (in levels) at close to 30 percent, while others show almost no change.
Annual World Bank Conference on Development Economics, Part 489 by World Bank