One of the important characteristics of evolving globalization is the marked increase in world output and trade. Rapid global integration has led to significant economic expansion, notably in industrialized countries, but also in developing countries with outward-oriented economic and trade policies. During the l990s world output expanded at an average annual rate of 2.9 percent, while trade grew by 6.0 percent. For developing countries as a group, relative to the world as a whole, the rate of output growth was much higher at 5 percent. Asia, as a region, recorded an even higher average annual growth rate of 9 percent. Africa, on the other hand, lagged far behind other regions with a growth rate of about 2.3 percent. With respect to trade, during the same period, the export and import volumes of developing countries grew at a much higher rate than the global average, with several Asian countries recording double-digit growth rates.

Macroeconomics, Institutions, and Poverty