Presentation on theme: "Global Inequality A lecture by Dr Christopher Kollmeyer."— Presentation transcript:
1 Global InequalityA lecture by Dr Christopher Kollmeyer
2 Lecture Outline Lecture Addresses Three Questions: What’s the extent of global inequality today? (answer: massive)What’s the trend in global inequality?Within countries (answer: becoming more unequal)Between countries (answer: debatable)What are the dominant explanations?Modernization (neoliberal) theoryDependency (world-systems) theoryQuestion 3:Modernization and neoliberal TheoriesEmphasize the short-comngs of poor countriesInefficiencyDisincentives toward investment and growthCorruption2. World-System and Dependency TheoriesEmphasize interconnections with global economy and the use of political power by rich countriesLegacy of colonialism and inherent inequalities in capitalismNorth and South Elites vs. South WorkersLack of Democracy
3 The Champagne Glass of Inequality: Share of Global Income by Quintiles Bottom 60 percentile have less than 6% of the world’s income.
4 World’s Top-Ten Billionaires, 2007 Note: Scotland’s GDP equals about £80 billion per year.
5 Global PovertyThe World Bank estimates that 1.3 billion people live on less than 50p per day ($1)
9 Between-Country Inequality: The Global Distribution of Income and Population 781666025153 Categories of CountriesHigh Income: USA, EU, JapanMiddle Income: Argentina, Brazil, Turkey, RussiaLow Income: Sub-saharan Africa, SouthEast Asia, Afghanistan, PakistanN = number of countriesBlue = PopulationRed = WealthNo inequality = blue and red same size
10 Geography of Global Inequality KeyDark Blue = Wealthy CountriesLight Blue = Middle Income CountriesPink and Red = Poor CountriesShow the rich AreasShow the Poor AreasWealthiest: Western European countries, British Off-Shoots, and JapanPoorest: Sub-Saharan African and South Asian countries
11 The North-South Divide This picture of the Earth at night shows the wealthy Global North, illuminating its communities at night, and the much poorer Global South, which can’t afford to do so.
12 Within-Country Inequality: Income share of richest 20th percentile to poorest 20th percentile.
13 What are the recent trends in global income inequality? Question 2:What are the recent trends in global income inequality?Within countries: Becoming more unequal in most countriesBetween countries: Becoming more unequal, except for China and other countries in East Asia, which are catch up with the West.Within Countries:Going Up (but varies)
14 Example of Within-Country Income Inequality: The United States, 1913-2002 Source:Thomas Piketty and Emmuanuel Saez “Income Inequality in the United States, ” Quarterly Journal of Economics.
15 Inequality rising in most Anglo-Celtic countries, but remaining steady in most Continental European countriesEmmanuel Saez Income and Wealth Concentration in a Historical and International Perspective. National Bureau of Economic Research, USA.
16 Changes in Between-Country Income Inequality, 1950-2000 Begin of declineBegin of China’s economic riseSource: Sutcliffe, B “World Inequality and Globalization.” Oxford Review of Economic Policy, Vol 20, No. 1
17 Absolute vs Relative Inequality A Hypothetical Example Country A £1,000 £2,000Country B £15,000 £30,000Absolute Income Gap £14,000 £28,000Relative Inequality 15:1 15:1
18 Global Poverty Declines: World population living off less than US$1 per day by regionS-S AfricaSouth AsiaEast AsiaSource: World Bank 2007Note: Measured in constant 1993 US$ adjusted for PPP. Equals approx: 73p in today’s GBP