It’s a common misconception in public discourse that the global poor are trapped in poverty because of globalization. We frequently hear things from our public leaders about how markets are crushing the poor. “The reality is that the poor aren’t dominated by markets. They are excluded from them.” says Michael Matheson Miller in an article for The Stream.
Miller hits on four different problems and misconceptions of how international economic development is currently addressed. He starts out by explaining how the current system benefits the wealthy and well-connected.
Many of the powerful and wealthy don’t have an economic incentive to build institutions of justice like clear title to land or broad access to the formal economy. They are doing well under the status quo and many of them are actually benefiting from the current situation through connections, access to special privileges, bribes and sweetheart deals on things like mineral rights.