Globalization, local ecosystems, and the rural poor

In this paper, we draw upon models from ecology and New Institutional Economics to examine the various mechanisms through which globalization can lead to loss in resilience of ecosystems and thus increase the vulnerability of poor people who depend on it. To illustrate ecological dynamics, we examine a semi-arid savanna ecosystem that is characterized by nonlinearities and multiple steady states. We discuss how traditional knowledge and institutions affect resource use patterns and resilience of such an ecosystem in the absence of trade. Then we examine the effects of trade liberalization and international technology transfers on institutional and ecological dynamics, and consequently, on poverty.