Increasing Poverty in a Globalised World: Marshall plans and morgenthau plans as mechanisms of polarisation of world incomes Erik S. Reinert

The increasingly globalised economy seems to produce opposite effects of what standard economic theory predicts. Instead of a convergence of world income (towards factor-price equalisation), a group of rich nations show a tendency to converge, another convergence group of poor countries gathers at the bottom of the scale. This paper explains the mechanisms and the economic policies that create this type of gap in the living standard of workers in the non-tradable service sector.

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