The report found that the current trading regime, including the establishment of the World Trade Organization (WTO), is failing to speed the growth of global gross national product, which is lagging behind the economic performance of previous decades.
Entitled "A Fair Globalization," the study was commissioned by the International Labor Organization and prepared by 20 officials and experts, including Joseph E. Stiglitz, the American economist who won the 2001 Nobel in economic science.
The report, to be released on Tuesday in London, found that:
- 188 million people are unemployed worldwide, or 6.2 percent of the labor force;
- The gap between rich and poor nations has widened, with countries representing 14 percent of the world's population accounting for half the world's trade and foreign investment; and,
- Women have been harmed more than men by globalization in the developing world.
The report also said that women's traditional livelihoods as subsistence farmers or small producers have been undermined by foreign subsidized agriculture or foreign imports but, as women, they face cultural barriers when looking for alternative occupations.
Echoing sentiments heard during the current Democratic campaign for president, the reports' two co-chairmen, Tarja Halonen, the president of Finland, and Benjamin William Mkapa, the president of Tanzania, wrote: "Currently, globalization is a divisive subject. It verges on a dialogue of the deaf, both nationally and internationally. Yet the future of our countries, and the destiny of our globe, demands that we all rethink globalization."
The gap between rich and poor has grown wider as well in richer countries, such as Britain, Canada and the United States .
The United States posted the greatest gap between rich and poor, with the top 1 percent earning 17 percent of the gross income," a level last seen in the 1920's."
Globalization has also affected the rate of taxes collected by countries, the report said. In the world's 30 wealthiest nations, the average level of corporate tax fell from 37.6 percent in 1996 to 30.8 percent in 2003.
The report argues that globalization is at a turning point and international institutions need to address social inequities as well as other consequences of open borders.