View article

The globalization of markets for capital, goods, and services that has taken place in the past two to three decades has few historical precedents. Against a wider context of international integration, the developing world has experienced the most dramatic change in its economic policy orientation since World War II. In the developing world, governments have instituted radical reforms aimed at integrating their economies into global markets. In the face of reform, large segments of the population are now exposed to market fluctuations that have important effects on employment and on government subsidies. Also at risk is government spending on social programs, including spending on health, education, and social security. Have governments become less generous toward citizens in response to the pressures generated by greater economic openness? Or have they created stronger safety nets and new forms of social assistance in order to meet the new social challenges of