Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality


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Common Wealth. Jeffrey Sachs. Stress Test.

Inequality between countries

Timothy Geithner. False Economy. Alan Beattie. Political Competition and Economic Regulation. Peter Bernholz. The Bottom Billion. Paul Collier. For All the Tea in China. Sarah Rose.

Globalization and American Wages: Today and Tomorrow | Economic Policy Institute

The Globalization Paradox. Dani Rodrik. The Death of Money. James Rickards. Your review has been submitted successfully. Not registered? Forgotten password Please enter your email address below and we'll send you a link to reset your password. Surprisingly, the evidence to back this argument is inconclusive at best.

In their well-known work Greed and Grievances in Civil War, Paul Collier and Anke Hoeffler find that income inequality is insignificant in determining the probability of conflict, and even reject altogether the argument that grievances cause conflicts. However, this does not imply that there is no correlation between inequalities and the likelihood of civil war in a country. There are a number of problems with the findings and studies mentioned above, largely relating to the availability and reliability of the data used.

Especially in situations of conflict, collecting reliable and comparable data is notoriously difficult.

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Those claiming that inequality does not lead to civil war have to acknowledge that the available data on which this argument is based is highly imperfect. Another important problem is methodological. Inequality is generally measured using indicators like the Gini coefficient, which express the distribution of wealth and income in a country. Yet such statistics fail to look at the political significance of inequalities, which may matter more in certain cases than in others. The findings suggest that the purely economic focus adopted by Collier and colleagues is inadequate.

Inequalities between groups. Horizontal inequalities occur between different ethnic, religious or regional groups. The violence in Kenya after the elections was also fed by inequalities between regions and ethnic groups.

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Frances Stewart looks not only at economic inequalities between groups, but also inequalities in social, political and cultural dimensions. They also include inequalities in income levels and employment opportunities. Social inequalities include access to services like education, healthcare, housing, etc. Political inequalities include the distribution of political opportunities and power among groups, such as control over local, regional and national institutions of governance, the army and the police.

Cultural inequalities include disparities in the recognition and standing of the language, religion, customs, norms and practices of different groups. The argument has considerable explanatory power.

Trade, Poverty & Inequality

To mobilize people to go to war, there must be an issue around which they can be organized. Economic or political inequalities have the potential to be such an issue, but it is much easier to organize people around it when they are already part of a group and inequalities can be interpreted as a consequence of conscious discrimination against this group. A good example is provided by Joshua Gubler and Joel Sawat Selway, who describe two rebel leaders trying to organize a rebellion. The group already has a shared history and the leader does not face the problem of having to convince a set of individuals that they are a group.

Moreover, this ethnic group may have its own language and norms, which facilitates in-group communication. Once the group has been mobilized, it is difficult for members to leave it, as they cannot simply change their skin colour, family ties or cultural heritage. The second rebel leader wants to rally a lower economic class.

Creating a shared history and organizing and convincing individuals that they are part of a distinct group is a lot harder in his case. They share their history and language with members of higher economic classes and there is much greater mobility between the classes. A focus on inequalities between different groups has another advantage.

As the figure below shows, the levels of inequalities between groups may be overlooked by data examining the inequalities across a population as a whole. A country may have a highly equal distribution of income overall, but it may be divided very unevenly between particular cultural groups. In this light, focusing on inequalities between different groups draws attention to discriminatory relationships between groups in a society.

Studies indicate that conflicts are indeed more likely to break out in situations where there are large inequalities between different groups. She finds that conflict is three times more likely to break out where inequalities between different ethnic, religious or regional groups are high than where they are average. Access to education and healthcare thus seem to matter more than unequal salaries and job opportunities. The explanation she gives is that exclusion from education is more likely to be the result of the systematic discrimination of a particular group.

For instance, prior to the conflict in Burundi there were deliberate policies to limit the number of Hutu students and teachers. However, differences in job opportunities may also be caused by a particular group living in an area where there is simply a weaker local economy. Cederman and colleagues also find evidence of a strong influence of political inequalities, which they base on measurements of the access of ethnic groups to central political power. Horizontal inequalities and civil unrest in Bahrain.

Kaplan considers these inequalities to be a key driver of the civil unrest earlier this year, exacerbating the fault lines between the two groups.

Human Capital Response to Globalization

Discussing political events, he concludes that a focus on economic issues would be a best first step towards addressing inequalities as there is currently no room for compromise in the political sphere. Gengler finds that, as a result, society has become more fractured and opposition to the Sunni elite is becoming increasingly radical, and he warns of the possibility of armed insurgency.

Muramvya, Burundi, Indicators of inequalities between different groups and regions thus seem to have much greater potential to predict the risk of civil war breaking out than those looking at nationwide inequalities between individuals. So how can the world become a safer place? What can policymakers do to prevent conflict? What kind of new laws need to be implemented?

Professor Viscusi's estimates of the value of risks to life and health are currently used throughout the Federal government. He has served as a consultant to the U.

autoconfig.cigliola.eu.org/39-hydroxychloroquine-mejor.php Department of Justice on issues pertaining to the valuation of life and health. In the Carter administration, he was Deputy Director of the Council of Wage and Price Stability, which was responsible for White House oversight over all new federal regulations. He has served on different panels of the Science Advisory Board of the U. Environmental Protection Agency for over a decade. Professor Viscusi is the founding editor of the peer-reviewed Journal of Risk and Uncertainty , which he has edited since His textbook with Harrington and Vernon, Economics of Regulation and Antitrust , has retained its monopoly position in that field.


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  8. Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality
    Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality
    Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality
    Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality
    Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality
    Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality
    Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality
    Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality Brookings Trade Forum, 2004: Globalization, Poverty, and Inequality

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