Rising Inequality Within Countries Under Globalization.pptVIP

Rising Inequality Within Countries Under Globalization Measured through the inequality in pay in manufacturing A Global Coup? Looking Beyond Technology and Trade at the Causes of Rising Inequality in the Age of Globalization Main conclusions Inequality has been rising in the age of globalization. Kuznets was right: in general, inequality does declines with rising income. A decline in economic growth rates is part of the problem in many countries. But there is also an important global element to rising inequality, independent of national income growth. This reflects a failing of the world system, particularly in the years since 1980. Beating the Bank at its Own Game:Estimating Income Inequalityfrom measures ofpay inequalityand other economic information * APSA Chicago, September 2004 by James K. Galbraith The University of Texas Inequality Project With the UTIP data, we can review changes in global inequality both across countries and through time. Nothing comparable can be done with the Deininger and Squire data set, for the measurements are too sparse and too inconsistent. The Scale Brown: Very large decreases in inequality; more than 8 percent per year. Red Moderate decreases in inequality. Pink: Slight Decreases. Light Blue: No Change or Slight increases Medium Blue: Large Increases -- Greater than 3 percent per year. Dark Blue: Very Large Increases -- Greater than 20 percent per year. h 1963 to 1969 1970 to 1976 The oil boom: inequality declines in the producing states, but rises in the industrial oil-consuming countries, led by the United States. 1977 to 1983 1981 to 1987 … the Age of Debt Note the exceptions to rising inequality are mainly India and China, neither affected by the debt crisis… 1984 to 1990 1988 to 1994 The age of globalization… Now the largest increases in inequality in are the post-communist states; an exception is in booming Southeast Asia, before 1997… Simon Kuznets in 1955 argued that while inequality could rise in the e