Is globalisation all it is cracked up to be?

Globalisation has been associated with growing inequality within and betwee n nations and with rising impoverishment in both the industrialised and dev eloping world. This article argues that there is a causal link between thes e phenomena, one which is partly explained by the growing reserve army of l abour which globalisation makes available for production. The significance of China's insertion into the global market lies not just in the size of it s potential labour force, but also in the skills which this labour force po ssesses. Two scenarios are discussed: a world of growing openness resulting in the bidding down of global wages (even for skilled work), and the other of rising protectionism which protects incomes in the industrialised econo mies.