Stark
inequality within and between countries has emerged
as a major focal point in the debate over the impact
of globalisation. The proponents of globalisation
have postulated the disappearance or sharp reduction
of inter country income disparities. But do recent
experiences show any trends towards a convergence
of incomes? Examples of Sub-Saharan Africa raise fears
to the contrary. Inequalities within countries, according
to a large section of economists, have also risen
sharply. Given deficiencies in data, empirical
investigation into this phenomenon has become a complicated
and often controversial process. However, recent economic
research and discussion have concentrated on this
contentious question and attempted to find an answer.
The conclusions offered have predictably varied. This
section attempts to provide a window into this debate
- The
Ricardian Vice: Why Sala-i-Martin's Calculations
of World Income Inequality cannot be right
Branko Milanovic
The paper argues that the problem of sparseness
of data relating to income distribution within a
country and across time, has not been adequately
solved by Xavier Sala-i-Martin in his calculation
of world income inequalities, which render such
estimates unreliable.
- Unexpected
Convergence: Disintegration of World Economy 1919-39
and Income Convergence among Rich Countries
Branko Milanovic
The paper demonstrates empirically, that contrary
to views held by some, the between war period of
1919-39 actually witnessed a convergence and acceleration
in incomes between countries. The paper concludes
that it may be less observable factors like diffusion
of information and technology, and not trade, capital
or labour flows, which determine such movements.
- Globalisation
and Income Inequality: A Survey
Ideas Research Team
Excessive inequality, which remains the principal
challenge to the process of globalisation, has given
rise to a major debate among economists. Any detailed
analysis must address a mainly empirical question.
However, lack of quality and consistency in data
emerges as a major problem for any comprehensive
and conclusive study of the issue.
- Against
Globalization As We Know It
Branko Milanovic
The current view of globalization as an automatic
and benign force is seriously flawed. It is mistaken
because it focuses on only one, positive, face of
globalization, while entirely neglecting a malignant
one.
- A
Critique of Dollar and Kraay on ' Trade, Growth,
and Poverty'
Howard L. M. Nye, Sanjay G.
Reddy and Kevin Watkins
The authors argue that both the findings of Dollar
and Kraay as well as their interpretation of their
results are suspect for a variety of reasons.
- How
not to count the poor
Sanjay G. Reddy and Thomas
W. Pogge
Use of an arbitrary international poverty line and
an inaccurate measure of purchasing power equivalence
has helped the World Bank to show (incorrectly)
that global income poverty is falling. A new methodology
for global poverty assessment is called for.
- More
Writings on Globalisation and Income Inequality
August 21, 2002.
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