From Poverty to Power Green, Oxfam 2008 - weman

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5 THE INTERNATIONAL SYSTEM TRADINGGLOBAL BUSINESSInternational rules and treaties governing trade, migration, and othereconomic matters are made among states, and guide the policies andpractices of national governments. The gaping hole in global governance– the elephant in the room – is the lack of rules for global business,the transnational corporations (TNCs) that exercise a central role ingrowth and development as generators of jobs, tax revenues, technology,and consumer goods, yet are subject to the disciplines of internationaltreaties only if national governments choose to make them so.The positive contribution of businesses to development throughwealth creation, innovation, and technological transfers is oftenundermined by a deeply unjust structure of global governance thataccords them vast privileges and powers but few responsibilities.Corporations must be subject to effective regulation by states as partof a renewed social contract geared to generating sustainable growthwith redistribution.Many companies have made progress, especially on environmentalissues, but also increasingly on social issues (see Box 5.2). These are oftenthe biggest firms which have the resources and capacities to addressproblems and which risk their ‘licence to operate’ if they do not meetpublic expectations. Public reporting among a handful of companieshas improved dramatically, and for many so has performance.BOX 5.2EARNING A ‘LICENCE TO OPERATE’At both national and international levels, civil society organisationssuch as trade unions, consumer movements, and NGOs can playa useful role in harnessing the benefits of foreign direct investment.In south-eastern Madagascar, the mining company Rio Tinto iscurrently developing an ilmenite mine, the raw material for theproduction of titanium dioxide pigment, mainly used in paintproduction. The company was once notorious for ignoring thehealth and safety of its workers and the surrounding communities,leaving environmental and social disaster in its wake.341
FROM POVERTY TO POWERMotivated by a combination of pressures, including judicial rulingsin Australia, concern over the damage to its reputation caused bya bad press, and NGO campaigns, the CEO of the Australian halfof the company championed an effort to rebuild its ‘social licenceto operate’ from local communities and governments. Over 20years, the company conducted preparatory research and trustbuilding with local communities and NGOs before moving forwardwith the project.Initially sceptical NGOs have been won over by Rio Tinto’s changeof approach (the Worldwide Fund for Nature and ConservationInternational among them). The transformation was alsoencouraged by pressure from investors, and by partnershipswith experienced NGOs which helped Rio Tinto to address theproject’s social and environmental impacts.Some general lessons emerge from this and other experiencesof changing corporate behaviour:• The company recognised there was a business case forsustainable development.• Communities, consumers, and NGOs put initial pressureon the company.• NGOs acted as an important bridge for the company towork with local communities.• Government regulation forced strategic change.• There was buy-in and leadership for change at the topof the company.Sources: Oxfam, based on published sources and telephone interviews with protagonists.Regrettably, there are still many companies whose operations abroadfall well short of the legal standards of their home countries. Theproblem with voluntary standards in these situations is precisely thatthey are voluntary, leaving enforcement to the companies themselvesand allowing ‘free-riders’ to ignore such standards, and so gain a costadvantage over their more scrupulous rivals. Voluntary standardsare important but they cannot replace the need for internationalstandards that prevent the abuse of power by large TNCs operating indeveloping countries.342
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OXFAM INTERNATIONALOxfam Internatio
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First published by Oxfam Internatio
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PART 4 RISK AND VULNERABILITY 197Li
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LIST OF ACRONYMSAIDSARTARVASEANAUCA
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ACKNOWLEDGEMENTSThe word ‘editor
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FOREWORDGeorge Bernard Shaw argued
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FOREWORDThis book, which I hope wil
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PART ONE
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1 INTRODUCTION THE UNEQUAL WORLDEnd
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1 INTRODUCTION THE UNEQUAL WORLDExt
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1 INTRODUCTION THE UNEQUAL WORLDPOV
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1 INTRODUCTION THE UNEQUAL WORLDSuc
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1 INTRODUCTION THE UNEQUAL WORLDACT
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1 INTRODUCTION THE UNEQUAL WORLDpeo
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1 INTRODUCTION THE UNEQUAL WORLDcom
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PART TWOThe political roots of deve
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2 POWER AND POLITICS THE POLITICAL
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2 POWER AND POLITICS THE POLITICAL
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I HAVE RIGHTS, THEREFORE I AMThe hi
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2 POWER AND POLITICS I HAVE RIGHTS,
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FROM POVERTY TO POWERThe attitudes
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FROM POVERTY TO POWERJain: ‘A man
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FROM POVERTY TO POWERI READ, THEREF
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FROM POVERTY TO POWEREven where pub
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FROM POVERTY TO POWERplayed a pivot
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FROM POVERTY TO POWERDespite some p
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FROM POVERTY TO POWERof sub-Saharan
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FROM POVERTY TO POWERIn water servi
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FROM POVERTY TO POWERI SURF, THEREF
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FROM POVERTY TO POWERDespite the hy
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FROM POVERTY TO POWERresearch effor
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FROM POVERTY TO POWERWE ORGANISE, T
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FROM POVERTY TO POWERreinforce disc
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FROM POVERTY TO POWERThe bedrock of
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FROM POVERTY TO POWERwith imperviou
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FROM POVERTY TO POWERgovernments an
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FROM POVERTY TO POWERCASE STUDYand
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FROM POVERTY TO POWERI OWN, THEREFO
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FROM POVERTY TO POWER‘breathe lif
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FROM POVERTY TO POWERLAND REFORM‘
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FROM POVERTY TO POWERled to the cou
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FROM POVERTY TO POWERthese things.
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FROM POVERTY TO POWERwhile Benin an
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FROM POVERTY TO POWERWhere flawed d
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FROM POVERTY TO POWERstarted to att
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FROM POVERTY TO POWERI STEAL, THERE
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FROM POVERTY TO POWERTHE CURSE OF W
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FROM POVERTY TO POWERI RULE, THEREF
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FROM POVERTY TO POWERthe turn of th
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FROM POVERTY TO POWERBOX 2.2ARE EFF
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FROM POVERTY TO POWER‘embedded au
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FROM POVERTY TO POWERIn the face of
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FROM POVERTY TO POWERcost incurred
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FROM POVERTY TO POWERIn the Horn of
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FROM POVERTY TO POWERFROM POVERTY T
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FROM POVERTY TO POWER106
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FROM POVERTY TO POWERAN ECONOMICS F
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FROM POVERTY TO POWERpicture it off
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FROM POVERTY TO POWERthe work of wo
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FROM POVERTY TO POWERWhile the envi
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FROM POVERTY TO POWERcan be broaden
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FROM POVERTY TO POWERbut are largel
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FROM POVERTY TO POWERaltogether. Ru
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FROM POVERTY TO POWERFIGURE 3.2: MO
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FROM POVERTY TO POWERin their relat
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FROM POVERTY TO POWERliving from lo
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FROM POVERTY TO POWERenvironments.
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FROM POVERTY TO POWERthem farming o
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FROM POVERTY TO POWERThe jury is al
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FROM POVERTY TO POWERor credit to i
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FROM POVERTY TO POWERplanned mill.
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FROM POVERTY TO POWERto begin with.
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FROM POVERTY TO POWERprogrammes (SA
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FROM POVERTY TO POWERfertilisers to
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FROM POVERTY TO POWERDomestic and r
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FROM POVERTY TO POWERHOW CHANGE HAP
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FROM POVERTY TO POWERTHE CHANGING W
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FROM POVERTY TO POWERThe nature of
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FROM POVERTY TO POWERNOBODY’S FOR
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FROM POVERTY TO POWERFordist mass p
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FROM POVERTY TO POWERand Palau have
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FROM POVERTY TO POWERA similar situ
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FROM POVERTY TO POWERMany unions ha
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FROM POVERTY TO POWERBOX 3.5INDIA
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FROM POVERTY TO POWERrather than di
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FROM POVERTY TO POWEROne trade agre
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FROM POVERTY TO POWERPRIVATE SECTOR
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FROM POVERTY TO POWERothers see the
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FROM POVERTY TO POWERlocal producer
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FROM POVERTY TO POWERWhile China’
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FROM POVERTY TO POWERcountries rock
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FROM POVERTY TO POWERLocal NGOs and
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FROM POVERTY TO POWERbetter off eve
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FROM POVERTY TO POWERTwenty years o
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FROM POVERTY TO POWERcompanies (for
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FROM POVERTY TO POWERhigh- and midd
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FROM POVERTY TO POWERtheir comparat
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FROM POVERTY TO POWERchange is such
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FROM POVERTY TO POWERCASE STUDYThe
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FROM POVERTY TO POWERseason, or whe
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FROM POVERTY TO POWERLIVING WITH RI
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FROM POVERTY TO POWERInsecurity and
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FROM POVERTY TO POWERand withstand
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FROM POVERTY TO POWERcomprehensive
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FROM POVERTY TO POWERFIGURE 4.2: CA
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FROM POVERTY TO POWER(although deli
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FROM POVERTY TO POWERfailure, notab
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FROM POVERTY TO POWERhave a dignifi
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FROM POVERTY TO POWERStandard beare
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FROM POVERTY TO POWERWhile more exp
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FROM POVERTY TO POWERCASE STUDYtwo
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FROM POVERTY TO POWERFINANCE AND VU
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FROM POVERTY TO POWERas the insuran
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FROM POVERTY TO POWERHUNGER AND FAM
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FROM POVERTY TO POWERfirewood for s
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FROM POVERTY TO POWERthe 1973 droug
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FROM POVERTY TO POWERA human securi
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FROM POVERTY TO POWERof the Black D
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FROM POVERTY TO POWEREveryone has a
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FROM POVERTY TO POWERstate-of-the-a
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FROM POVERTY TO POWER24-hour advice
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FROM POVERTY TO POWERTherefore when
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FROM POVERTY TO POWERgovernment to
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FROM POVERTY TO POWERwhether in the
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FROM POVERTY TO POWERIn regions pro
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FROM POVERTY TO POWERThe key to suc
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FROM POVERTY TO POWERBOX 4.5:CUBA V
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FROM POVERTY TO POWERdisaster-drive
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FROM POVERTY TO POWERIn enhancing h
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FROM POVERTY TO POWERhigher confide
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FROM POVERTY TO POWERIn Africa’s
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FROM POVERTY TO POWERtheir source:
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FROM POVERTY TO POWERcommunity and
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FROM POVERTY TO POWERfrom this have
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FROM POVERTY TO POWERLIVING ON THE
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FROM POVERTY TO POWERLike Australia
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FROM POVERTY TO POWERA positive fut
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FROM POVERTY TO POWERcome out all s
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FROM POVERTY TO POWERareas or among
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FROM POVERTY TO POWERToday, though
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FROM POVERTY TO POWERinferior on th
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FROM POVERTY TO POWERreplaced the t
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FROM POVERTY TO POWERCourt, for exa
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FROM POVERTY TO POWERSHOCKS AND CHA
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FROM POVERTY TO POWERMajor changes
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Page 309 and 310: FROM POVERTY TO POWERWHO RULES THE
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Page 313 and 314: FROM POVERTY TO POWERThroughout the
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Page 329 and 330: FROM POVERTY TO POWER• Sudden inf
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Page 333 and 334: FROM POVERTY TO POWERto reduce the
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Page 337 and 338: FROM POVERTY TO POWERPatents: Intel
Page 339 and 340: FROM POVERTY TO POWERdumping on wor
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Page 343 and 344: FROM POVERTY TO POWERprotectionism
Page 345 and 346: FROM POVERTY TO POWERThe vast major
Page 347 and 348: FROM POVERTY TO POWERPrices for som
Page 349 and 350: FROM POVERTY TO POWER• Establish
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Page 353 and 354: FROM POVERTY TO POWERBOX 5.1MIGRANT
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Page 357: FROM POVERTY TO POWERFor example, q
Page 361 and 362: FROM POVERTY TO POWERIn the Uruguay
Page 363 and 364: FROM POVERTY TO POWERlong-term deve
Page 365 and 366: FROM POVERTY TO POWERimportance in
Page 367 and 368: FROM POVERTY TO POWERUN Global Comp
Page 369 and 370: FROM POVERTY TO POWERThe drivers of
Page 371 and 372: FROM POVERTY TO POWERMore broadly,
Page 373 and 374: FROM POVERTY TO POWERWhatever the m
Page 375 and 376: FROM POVERTY TO POWERThe heightened
Page 377 and 378: FROM POVERTY TO POWERThe aid optimi
Page 379 and 380: FROM POVERTY TO POWERThe aid optimi
Page 381 and 382: FROM POVERTY TO POWERand 2006/07, f
Page 383 and 384: FROM POVERTY TO POWERgovernment dow
Page 385 and 386: FROM POVERTY TO POWERpractice, but
Page 387 and 388: FROM POVERTY TO POWERWithholding ai
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Page 391 and 392: FROM POVERTY TO POWERchanged. Simil
Page 393 and 394: FROM POVERTY TO POWERremain in the
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Page 397 and 398: FROM POVERTY TO POWERA decade on, t
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Page 403 and 404: FROM POVERTY TO POWERThe humanitari
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FROM POVERTY TO POWERgovernment in
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FROM POVERTY TO POWERThe only probl
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FROM POVERTY TO POWERopportunity is
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FROM POVERTY TO POWERREFUGEESPeople
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FROM POVERTY TO POWERWest African S
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FROM POVERTY TO POWERdrivers of con
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FROM POVERTY TO POWERCASE STUDYgrou
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FROM POVERTY TO POWERCLIMATE CHANGE
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FROM POVERTY TO POWERwithout heavy
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FROM POVERTY TO POWERunless the wor
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FROM POVERTY TO POWERcap the aspira
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FROM POVERTY TO POWERreduce the qua
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FROM POVERTY TO POWERThe CDM is bes
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FROM POVERTY TO POWERAccused variou
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FROM POVERTY TO POWERemissions by 8
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FROM POVERTY TO POWERBangladesh and
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FROM POVERTY TO POWERGLOBAL GOVERNA
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FROM POVERTY TO POWERNew Zealand wa
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FROM POVERTY TO POWERA NEW DEAL FOR
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FROM POVERTY TO POWER430
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FROM POVERTY TO POWERHow change hap
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FROM POVERTY TO POWER• Family str
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FROM POVERTY TO POWERTHE DYNAMICS O
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FROM POVERTY TO POWERseeking change
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FROM POVERTY TO POWERWithin many de
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FROM POVERTY TO POWERSecond, becaus
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FROM POVERTY TO POWER15 For a more
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FROM POVERTY TO POWER41 WaterAid (2
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FROM POVERTY TO POWER121 UNDP (2007
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FROM POVERTY TO POWER46 R. Offenhei
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FROM POVERTY TO POWER106 M. Rama (2
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FROM POVERTY TO POWER172 P. Chaudhr
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FROM POVERTY TO POWER37 FAO (2007).
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FROM POVERTY TO POWER94 IPCC (2007)
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FROM POVERTY TO POWER155 UN OCHA (2
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FROM POVERTY TO POWER34 UN (2006)
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FROM POVERTY TO POWER101 M. Chen (2
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FROM POVERTY TO POWER168 D. Rodrik
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FROM POVERTY TO POWER215 UN Framewo
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FROM POVERTY TO POWERBIBLIOGRAPHYAc
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FROM POVERTY TO POWERBoko, M., I. N
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FROM POVERTY TO POWERCiconello, A.
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FROM POVERTY TO POWERDFID (2005)
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FROM POVERTY TO POWERGaleano, E. (1
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FROM POVERTY TO POWERHopkins Leishe
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FROM POVERTY TO POWERKeynes, J.M. (
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FROM POVERTY TO POWERMoran, T. (200
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FROM POVERTY TO POWEROxfam Intermó
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FROM POVERTY TO POWERRama, M. (2003
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FROM POVERTY TO POWERStockbridge, M
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FROM POVERTY TO POWERUNESCO (2007)
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FROM POVERTY TO POWERWorld Bank (20
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FROM POVERTY TO POWEROxfam Australi
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FROM POVERTY TO POWERGLOSSARYAccoun
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FROM POVERTY TO POWEREffective stat
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FROM POVERTY TO POWERNeoclassicalec
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FROM POVERTY TO POWERINDEXPage numb
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FROM POVERTY TO POWERfinancial inst
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FROM POVERTY TO POWER303, 304, 305,
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FROM POVERTY TO POWERgrowth 114, 18
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FROM POVERTY TO POWERIndia:access t
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FROM POVERTY TO POWERJapan:climate
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FROM POVERTY TO POWERPacific region
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FROM POVERTY TO POWERtransnational
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FROM POVERTY TO POWER241; human sec
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