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The global redistribution of income

The actual distribution of world income across countries is extremely unequal, much higher than the within country inequality faced by most countries. The question studied in this paper is: How do international policies on aid, trade, and factor movements affect the international distribution of income?… In brief, there is a contradiction in international policies where aid's equality-enhancing effect is somewhat offset by protectionism.

From a new working paper by World Bank chief economist Francois Bourguignon, Victoria Levin, and David Rosenlatt.

Also, the most recent issue of the Journal of World Systems Research is out. It includes papers on global income disparities since 1800 and a review of the economics literature on the world distribution of income and income inequality.


Submitted by Pablo on
Another interesting quote from the paper: "Although this paper is about international inequality, we know that the actual level of global inequality of income is extremely high ­ with a Gini coefficient between 0.64 (Milanovic 2005) and 0.66 (Bourguignon and Morrisson 2002). If this level of inequality were to exist within a single country, that country would probably experience substantial social strife. That this does not happen in the world simply means that, as of today, there is nothing like a global community." For more commentary, see:

In the Hyperwage Theory ( Gini coefficient problem, among other non-economic issues as well, is addressed by focusing on Keynes' analysis that consumption is the most important of all the macro-econ components. Giving consumption power to the people directly redounds to a bigger Keynesian multiplier and at the same time solves brain drain, the inequitable distribution of wealth, and tax evasion.

Submitted by Anonymous on
According to P. Sainath; “India is a classic example of engineered inequality. On 20 October, The New York Times had a front page lead celebrating the birth of a class of people in India who spend their weekends at malls. It failed to mention that thi...

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