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inequality

Increasingly, inequality within, not across, countries is rising

Jos Verbeek's picture

During the second-half of the last century countries were placed in one of two mutually exclusive camps: north or south, east or west, advanced or emerging, developed or developing. Simple though this categorization of countries had been, it reflected prevailing realities. In 1970, for instance, the global distribution of per capita income showed a clear divide between richer and poorer countries (See Figures 1 and 2). These between-country differences were equally applicable to other development conditions, notably health and education. However, as Hans Rosling emphasized during his last presentation at the World Bank, for the 21st century this binary distinction between countries is outdated. Boundaries between developed and developing regions are less clear today because of the extraordinary social and economic progress achieved in the large majority countries. Global economic activity is less geographically concentrated and increasingly dispersed across production networks that connect metropolitan areas around the world.

Quote of the Week: Thomas Piketty

Sina Odugbemi's picture

Thomas Piketty"This idea, according to which no one will accept to work hard for less than $10m per year... It's OK to pay someone 10, 20 times the average worker's salary but do you really need to pay them 100 or 200 times to their arses in gear?"

- Thomas Piketty, a French economist who works on wealth and income inequality. He is the author of the best-selling book Capital in the Twenty-First Century (2013), in which he argues that the rate of return on capital (wealth) in developed countries is persistently greater than economic growth. Other things being equal, he states, faster economic growth diminishes the importance of wealth in a society, while slower growth increases it. To counter the steady concentration of wealth, Piketty proposes a global tax on wealth. Piketty is also a professor at the École des hautes études en sciences sociales (EHESS), professor at the Paris School of Economics and Centennial professor at the London School of Economics.
 

What are the drivers of change behind women’s empowerment at national level? The case of Colombia

Duncan Green's picture

Just read a new case study of women’s empowerment in Colombia, part of ODI’s Development Progress series (summary here, full paper here). What’s useful is the level of analysis – a focus on the national rather than global or a project case study enables them to consider the various drivers of change at work. Some excerpts:

Portrait of a Colombian womanSigns of Progress:

  • "Colombia is home to the longest armed conflict in Latin America. In this context, women have mobilised effectively to influence emerging law on transitional justice mechanisms and to ensure that understanding the gendered experiences of conflict informs policy and law.
  • Colombia has more women in relevant decision-making positions than ever before. In 2011, 32% of the cabinet were women, compared with 12% in 1998; in 2014, 19.9% of parliamentarians in the Lower House and 22% in the Senate were women, compared with 11.7% and 6.9% respectively in 1997.
  • Girls’ enrolment in secondary and tertiary education outperforms boys’, while women’s participation in the labour market has also seen sustained progress. Women constituted 29.9% of the labour force in 1990; by 2012 this had risen to 42.7%." (Summary, page 1)

Weekly wire: The global forum

Roxanne Bauer's picture
World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

 
Exporting corruption: Progress report 2015: Assessing enforcement of OECD Anti-bribery Convention
Transparency International
Transparency International’s 2015 Progress Report is an independent assessment of the enforcement of the Organisation for Economic Co-operation and Development’s (OECD’s) Anti-Bribery Convention. The Convention is a key instrument for curbing global corruption because the 41 signatory countries are responsible for approximately two-thirds of world exports and almost 90 per cent of total foreign direct investment outflows. This is the 11th annual report. It has been prepared by Transparency International’s International Secretariat working with our national chapters and experts in the 41 OECD Convention countries. This report shows that there is Active Enforcement in four countries, Moderate Enforcement in six countries, Limited Enforcement in nine countries, and Little or No Enforcement in 20 countries. (Two countries were not classified.)

The Science of Inequality- What the numbers tell us
Special issue of Science Magazine
This special issue uses these fresh waves of data to explore the origins, impact, and future of inequality around the world. Archaeological and ethnographic data are revealing how inequality got its start in our ancestors. New surveys of emerging economies offer more reliable estimates of people's incomes and how they change as countries develop. And in the past decade in developed capitalist nations, intensive effort and interdisciplinary collaborations have produced large data sets, including the compilation of a century of income data and two centuries of wealth data into the World Top Incomes Database.  It is only a slight exaggeration to liken the potential usefulness of this and other big data sets to the enormous benefits of the Human Genome Project. Researchers now have larger sample sizes and more parameters to work with, and they are also better able to detect patterns in the flood of data.

​Are we heading towards a jobless future?

Randeep Sudan's picture
From the wheel to the steam engine, from the car to ‘New Horizons’ — an inter-planetary space probe capable of transmitting high-resolution images of Pluto and its moons — from the abacus to exascale super-computers, we have come a long way in our tryst with technology. Innovations are driving rapid changes in technology today and we are living in a world of perpetual technological change.
 
Photo: Wikimedia Commons

In 1965, Gordon Moore — co-founder of Intel Corporation — hypothesized that the number of transistors on an integrated circuit will double every 18 to 24 months. This came to be known as Moore’s Law, the ramifications of which are hard to ignore in almost any aspect of our everyday lives. Information has become more accessible to people at lower costs. Today’s work force is globalized and there are few domains that are still untouched by technology.
 
Yet the very ubiquitous and rapidly evolving nature of information and communication technologies (ICTs) gives rise to fears of displacing more workers and potentially widening the economic gap between the rich and poor. Technological evolution and artificial intelligence are fast redefining the conventional structure of our society.

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.


A Global Middle Class Is More Promise than Reality
Pew Global Research
The first decade of this century witnessed an historic reduction in global poverty and a near doubling of the number of people who could be considered middle income. But the emergence of a truly global middle class is still more promise than reality. In 2011, a majority of the world’s population (56%) continued to live a low-income existence, compared with just 13% that could be considered middle income by a global standard, according to a new Pew Research Center analysis of the most recently available data.  And though there was growth in the middle-income population from 2001 to 2011, the rise in prosperity was concentrated in certain regions of the globe, namely China, South America and Eastern Europe. The middle class barely expanded in India and Southeast Asia, Africa, and Central America.

Global Internet Report 2015: Mobile Evolution and Development of the Internet
Internet Society
While there's no question that the mobile Internet is changing everything, there are still big reasons why people aren't logging on. The 2015 Global Internet Report presents data that shows it's not always a question of if it's available, but rather how cost and a lack of useful content are core to why people are not opting in.  While things need to change, together we have the power to find new solutions so everyone is able to seize the potential of the mobile Internet. Read the 2015 Global Internet Report and together we can start closing the digital divide.
 

Weekly wire: The global forum

Roxanne Bauer's picture
World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.
 

Beyond Propaganda: How authoritarian regimes are learning to engineer human souls in the age of Facebook.
Foreign Policy
Pity the poor propagandist! Back in the 20th century, it was a lot easier to control an authoritarian country’s hearts and minds. All domestic media could be directed out of a government office. Foreign media could be jammed. Borders were sealed, and your population couldn’t witness the successes of a rival system. You had a clear narrative with at least a theoretically enticing vision of social justice or national superiority, one strong enough to fend off the seductions of liberal democracy and capitalism. Anyone who disagreed could be isolated, silenced, and suppressed.  Those were the halcyon days of what the Chinese call “thought work” — and Soviets called the “engineering of human souls.” And until recently, it seemed as if they were gone forever. Today’s smart phones and laptops mean any citizen can be their own little media center. Borders are more open.

Causes and Consequences of Income Inequality: A Global Perspective
International Monetary Fund
Widening income inequality is the defining challenge of our time. In advanced economies, the gap between the rich and poor is at its highest level in decades. Inequality trends have been more mixed in emerging markets and developing countries (EMDCs), with some countries experiencing declining inequality, but pervasive inequities in access to education, health care, and finance remain. Not surprisingly then, the extent of inequality, its drivers, and what to do about it have become some of the most hotly debated issues by policymakers and researchers alike.

Quote of the Week: Thomas Piketty

Sina Odugbemi's picture

Thomas Piketty"The success of my book shows there are a lot of people who are not economists but are tired of being told that those questions are too complicated for them." [...] “ What pleases me is that this book reaches ‘normal’ people, a rather wide public.”

- Thomas Piketty, a French economist who works on wealth and income inequality. He is the author of the best-selling book Capital in the Twenty-First Century (2013), in which he argues that the rate of return on capital (wealth) in developed countries is persistently greater than economic growth. Other things being equal, he states, faster economic growth diminishes the importance of wealth in a society, while slower growth increases it. To counter the steady concentration of wealth, Piketty proposes a global tax on wealth. Piketty is also a professor at the École des hautes études en sciences sociales (EHESS), professor at the Paris School of Economics and Centennial professor at the London School of Economics.

The yawning divide between big city and countryside Tanzania

Nadia Belhaj Hassine's picture

Achieving shared prosperity, one of the World Bank’s twin-goals, isn’t just a middle-income country’s preoccupation. It has a special resonance in Tanzania, a US$1,000 per capita economy in East Africa.

Tanzania has seen remarkable economic growth and strong resilience to external shocks over the last decade. GDP grew at an annualized rate of approximately 7 percent.  Yet, this achievement was overshadowed by the slow response of poverty to the growing economy. The poverty rate has remained stagnant at around 34 percent until 2007 and started a slow decline of  about one percentage point per year, attaining 28.2 percent in 2012. To date, around 12 million Tanzanians continue to live in poverty, unable to meet their basic consumption needs, and more than 70 percent of the population still lives on less than US$2 per day. Promoting the participation of the poor in the growth process and improving their living standards remains a daunting challenge.

Could the UN’s new Progress of the World’s Women provide the foundations for feminist economic policy?

Duncan Green's picture

London launch of UN Women’s new flagship report,Progress of the World’s Women 2015-16Yesterday I went to the London launch of UN Women’s new flagship report, Progress of the World’s Women 2015-16, in the slightly incongruous setting of the Institution of Civil Engineers – walls adorned with portraits of bewigged old patriarchs from a (happily) bygone era (right).

The report is excellent. These big multilateral publications are usually a work of synthesis, bringing together existing research rather than breaking new ground. And that’s fine; it’s really important that a UN body has pulled such an excellent range of research together and made it accessible to policy makers. Gender and development debates suffer from a fair number of unsubstantiated claims and pretty dodgy stats (don’t get me started), and this report feels like something you can trust – I hope someone will go through it and pull out every major stat and graphic.

But the overall approach is both new and exciting, in that it applies an explicitly human rights approach to economic policy. Laura Turquet, UN Women researcher and report manager, summarized this as ‘bringing together human rights and economic policy-making to ask ‘what is the economy for?’’

This is a big deal, because the normal approach to gender and economic policy is incredibly reductive and instrumental – educate girls and get women into the workforce because it boosts growth! It ignores whether that will improve the lives of the said women or just pile more burdens onto their pre-existing roles as carers (of children, old people, neighbours), home maintainers etc etc.
 


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