This article analyses the advance of the neo-liberal regime, in order to contextualise the international formulation of policies focussed on poverty reduction. In recent debates, terms such as 'citizenship' and 'democracy' have been subject to critical scrutiny, revealing changes in the relations between citizens and the State which accompany the hegemony of economic criteria that put financial considerations at the centre of national states. We argue that analyses of such global processes require an ample political economy perspective, capable of illuminating how the substance of democracy and the legitimacy of state authority have been conditioned by the advance of new global entities that represent the interests of capital, favouring the concentration of wealth and the increase of poverty, inequality and exclusion, and installing a state of vital insecurity that affects the majority of the world's population.
Globalization; Neo-liberal political economy; Welfare state; Poverty; Capitalism