A major objective of this paper is to present a theoretical and analytical framework for better understanding and measuring the consequences of increasing poverty and inequality in income distribution at different levels in the developing countries. The research hypothesis to be tested here is that globalization has led to increasing economic inequality within countries and between them, and has multiplied the probability of authoritarian rule. The author endeavors to find answers to the following key research questions: What is the extent of poverty and inequality in the world? Has globalization increased inequalities between countries and within them? What policies should be implemented for the purpose of achieving the goals of economic equality and poverty alleviation? The major finding of the study is that globalization has adversely influenced poverty and equality in most developing countries.