Markets and globalization may not ensure prosperity for everyone. They may, in fact, exclude a significant proportion of people, particularly the poor, from the development process. This essay identifies the tension between the economics of liberalization and the politics of democracy as the real issue. It analyzes how markets exclude people and countries in the context of globalization and argues that governments play a critical role in fostering inclusion where the market exists, in creating markets where they do not exist, and in ensuring that markets do not accentuate exclusion.