Introduction: the story so Introduction: the story so far…far…

Ch.1, Greig, Hulme, and Ch.1, Greig, Hulme, and TurnerTurner

Arguing about inequalityArguing about inequality

Development studies emerged after WW2Development studies emerged after WW2

concerned with bconcerned with bridgridginging the the gap between gap between richer and poorer countries through richer and poorer countries through economic growtheconomic growth

By 1970s there was less enthusiasmBy 1970s there was less enthusiasm Development gap persists into the 21Development gap persists into the 21stst

centurycentury Global inequality ‘trails the career of Global inequality ‘trails the career of

modern development policy as its dark modern development policy as its dark shadow’shadow’

An overview of global inequalityAn overview of global inequality

UN’s ‘Human Development Report UN’s ‘Human Development Report 2003’2003’ provides a useful classificatory provides a useful classificatory scheme for looking at: scheme for looking at:

Inequality across countries, within Inequality across countries, within countries, and across the world’s countries, and across the world’s peoplepeople

Economic statisticsEconomic statistics::

Inequalities across nationsInequalities across nations

Richer countries produce over 4/5ths of the Richer countries produce over 4/5ths of the world’s measurable Gworld’s measurable Gross ross NNational ational PProduct roduct

Remaining one fifth concentrated in East Remaining one fifth concentrated in East AsiaAsia

GNPGNP per per head head less than less than USD$100 in Ethiopia, USD$100 in Ethiopia, DDemocratic emocratic RRepublicepublic of Congo, Burundi of Congo, Burundi

GNPGNP per per headhead more than more than USD$35,000 in USD$35,000 in Japan, Norway, Switzerland, and Luxembourg Japan, Norway, Switzerland, and Luxembourg

Global per capita income trebled from Global per capita income trebled from 1960-1990s, but 1960-1990s, but since the 1980ssince the 1980s there there were were over 100 countriesover 100 countries whose per capita whose per capita declined.declined.

Countries with a declining per capita: their Countries with a declining per capita: their share of world exports declined, food share of world exports declined, food production per capita decreased, their production per capita decreased, their infrastructure had deteriorated.infrastructure had deteriorated.

Richer countries dominate international Richer countries dominate international institutions (e.g. IMF, WTO)institutions (e.g. IMF, WTO)

Inequality of power to dictate the rules of Inequality of power to dictate the rules of global tradeglobal trade

Inequalities within countriesInequalities within countries UNDP estimates that 53 countriesUNDP estimates that 53 countries (containing 80 % of world (containing 80 % of world

population)population) experienced rising inequality experienced rising inequality Narrowing only occurred in 9 countriesNarrowing only occurred in 9 countries Gini IndexGini Index: measuring inequality. : measuring inequality. Equal income distribution is assigned value ‘0’Equal income distribution is assigned value ‘0’ Country where one person has all income is assigned ‘100’Country where one person has all income is assigned ‘100’ Japan, Denmark, Hungary (Gini < 25)Japan, Denmark, Hungary (Gini < 25) Brazil, Nicaragua, Bostwana, Swaziland, Central African Brazil, Nicaragua, Bostwana, Swaziland, Central African

Republic, Sierra Leone (Gini > 60)Republic, Sierra Leone (Gini > 60) Japan: poorest 20% receive 10.6% of income; richest 20% Japan: poorest 20% receive 10.6% of income; richest 20%

receive 35.7%receive 35.7% Brazil and Bostwana:Brazil and Bostwana: poorest poorest 2 200%% receive just over 2 % and receive just over 2 % and

the richest 20 per cent account for over 70 % of incomethe richest 20 per cent account for over 70 % of income .. Mexico: richest person’s income equals 17 million poorest Mexico: richest person’s income equals 17 million poorest

citizenscitizens Phenomenon also spreading to richer countriesPhenomenon also spreading to richer countries

Inequalities across the world’s Inequalities across the world’s peoplepeople

Global indicators of inequalityGlobal indicators of inequality The principal polarity is not between rThe principal polarity is not between rich and poorich and poor countries, but between countries, but between

rich and poorrich and poor people across the world people across the world Globalization of production and tradeGlobalization of production and trade raised the salience of i raised the salience of inequalities nequalities

across nations and classesacross nations and classes Richest 20% of the world’s population accounted for 70% of income in Richest 20% of the world’s population accounted for 70% of income in

19601960 By 1991By 1991 this share increased this share increased to 85% to 85% Meanwhile the bottom 20 per cent declined from 2.3 per cent to 1.4 per Meanwhile the bottom 20 per cent declined from 2.3 per cent to 1.4 per

cent.cent. By the end of the millenium, wBy the end of the millenium, wealthiest 5% earned 114 times as much as ealthiest 5% earned 114 times as much as

the poorest %5the poorest %5 Top 1% earned the equivalent of the bottom 57%Top 1% earned the equivalent of the bottom 57% Technological efficiency will reduce the employed to 20%, 80% Technological efficiency will reduce the employed to 20%, 80% of of

humanityhumanity will be unemployed therefore poor. will be unemployed therefore poor. Some claim we are already in a 2/3rds society – bottom third denied Some claim we are already in a 2/3rds society – bottom third denied

meaningful participation in formal economic activitiesmeaningful participation in formal economic activities Regressive distribution of income and wealthRegressive distribution of income and wealth

The paradox of modernity: the The paradox of modernity: the polarization of affluence and polarization of affluence and

deprivationdeprivation But the world has never been so wealthyBut the world has never been so wealthy Productivity is at unprecedented levelsProductivity is at unprecedented levels Higher living standardsHigher living standards But inequality has increased and one fifth of the world’s population But inequality has increased and one fifth of the world’s population

has gone backward economicallyhas gone backward economically Gap between ‘unprecedented affluence’ and ‘remarkable deprivation’Gap between ‘unprecedented affluence’ and ‘remarkable deprivation’ Digital divideDigital divide (by the turn of the millenium, while 50 percent of US (by the turn of the millenium, while 50 percent of US

citizens had internet access, the corresponding figure for Africa 0.4 citizens had internet access, the corresponding figure for Africa 0.4 per cent.per cent.

Chapters 5 and 6 of the book deal with history of development theoryChapters 5 and 6 of the book deal with history of development theory ‘‘endogenous’ approach adopts an ‘individualistic’ perspective on endogenous’ approach adopts an ‘individualistic’ perspective on

development (no international context)development (no international context) Interconnected nature of global inequalityInterconnected nature of global inequality. . ‘Structural’ (exogenous) ‘Structural’ (exogenous)

perspective: global inequalities are an inherent characteristic of perspective: global inequalities are an inherent characteristic of developmentdevelopment (inequality is the other side of the coin of progress) (inequality is the other side of the coin of progress)

While individualist approaches tend to focus on the material, cultural While individualist approaches tend to focus on the material, cultural or psychological attributes of the poor, the more structural or psychological attributes of the poor, the more structural approaches target how wealth perpetuates inequalities.approaches target how wealth perpetuates inequalities.

Debating Development in the 21Debating Development in the 21stst CenturyCentury

Trillions of dollars of aid transferred to poorer countries Trillions of dollars of aid transferred to poorer countries have not brought developmenthave not brought development

Disillusionment with progress and developmentDisillusionment with progress and development Millennium Development Goals (MDGs):Millennium Development Goals (MDGs): aims to aims to halve halve

global poverty by 2015global poverty by 2015 Traumatic changes also in the wealthier parts of the worldTraumatic changes also in the wealthier parts of the world Wealthy countries experienced eWealthy countries experienced economic change and social conomic change and social

dislocationdislocation World might be overshooting its ecological thresholdWorld might be overshooting its ecological threshold Development contributing to global environmental Development contributing to global environmental

problemsproblems Greenhouse gases, desertification, loss of biodiversity, Greenhouse gases, desertification, loss of biodiversity,

salinity, water scarcity, air pollution, disease transmissionsalinity, water scarcity, air pollution, disease transmission Non-renewable resources depletionNon-renewable resources depletion