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Global Inequality

Of globalization’s promises and perils

Swati Mishra's picture

As a student in 2003, I had an opportunity to interview a social activist about food security in India. Among other things, she blamed globalization for the slow demise of the local food industry. She went a step further and labeled globalization as depriving people (small scale farmers and workers) of their livelihoods. Her solution for India to become a leader in the food industry was by staying local, small, and forming cooperatives rather than fostering large agribusiness. This was quite a contrasting view at a time when India was starting to see benefits from its economic liberalization. In retrospect, I was interviewing someone who was ahead of a trend where activists were increasingly wary about the downsides of globalization and its impact on development.

Since then, globalization has sped up and contentious debates over who ultimately benefits have grown. And just as finance ministers from various countries were converging on Washington to discuss vital issues like extreme poverty, global macroeconomic prospects, jobs creation, and inclusive growth, revisiting globalization seemed germane to tackling development challenges.

The Real Winners and Losers of Globalization

Branko Milanovic's picture

It is generally thought that two groups are the big winners of the past two decades of globalization: the very rich, and the middle classes of emerging market economies.

The statistical evidence for this has been cobbled together from a number of disparate sources. The evidence includes high GDP growth in emerging market economies, strong income gains recorded for those at the top of the income pyramid in the United States and other advanced economies, as well as what seems to be the emergence of “a global middle class” and casual observations of the rising affluence of Chinese and Indians.

A Review of the analytical income classification

Shaida Badiee's picture

The World Bank’s classification of economies as low-, lower-middle-, upper-middle-, or high-income has a long history. Over the years these groupings have provided a useful way of summarizing trends across a wide array of development indicators. Although the income classification is sometimes confused with the World Bank’s operational guidelines, which set lending terms and are determined only in part by average income, the classification is provided purely for analytical convenience and has no official status.

Born Equal? How reducing inequality could give our children a better future

Núria Molina-Gallart's picture

As debates on the post-2015 framework gear up, a strong view is emerging that the next development framework must aim at finishing the job that the Millennium Development Goals (MDGs) started at the beginning of the 2000s. There are many lessons that the development community has learnt about what worked and what should be improved this time around. A new report by Save the Children published today on the occasion of the second meeting of the United Nations High Level Panel on post-2015 in London, Born Equal: How reducing inequality could give our children a better future, argues that inequality is one of the MDGs’ blind spots that needs to be addressed in the next development framework to accelerate progress towards the MDGs and to deliver the promise to eradicate extreme poverty.

World Food Day, Global Inequality, and Other Links

Swati Mishra's picture

Rising food prices, famine in the horn of Africa, climate change, seasonal hunger, uncertainty about the future of the global food system. 
 
World Food Day and Blog action Day are on October 16, and one hopes this day will inspire many ideas and innovations to tackle the World’s food security challenges. One such idea is - ‘small is beautiful’. Duncan Green explains why small farmers are actually beneficial when it comes to agriculture. One obvious reason is “it puts food into circulation and at the same time boosts the income of some of the poorest people on the planet”. Read his post to know more. Also, revisit the post "Seasonal Hunger" on this blog to know about the specific policy actions that can end the occurrence of this cycle.