Publication

This paper considers that global poverty and poverty reduction are more prominent public issues in high-income countries than they have ever have been, but progress toward the eradication of global poverty is at an increasingly grave risk due to global macro-economic imbalances. The author argues that at the heart of the problem is the US external deficit that has turned the US into the world’s largest debtor nation while developing countries, most notably in East Asia, are now among the world’s largest creditors. The author suggests that the impact of the adjustment of the US external deficit on developing country economies will depend on US macro-economic policy ahead.