[IMF World Economic Outlook] Globalization and Inequality - Chapter 4. Globalization and Inequality(

[IMF World Economic Outlook] Globalization and Inequality - Chapter 4. Globalization and Inequality(

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Press Points for Chapter 4: Globalization and Inequality World Economic Outlook, October 2007 Prepared by Subir Lall, Florence Jaumotte, Chris Papageorgiou, and Petia Topalova Key Points Over the past two decades, income inequality has risen in most regions and countries. At the same time, per capita incomes have risen across virtually all regions for even the poorest segments of population, indicating that the poor are better off in an absolute sense during this phase of globalization, although incomes for the relatively well off have increased at a faster pace. Technological advances have contributed the most to the recent rise in inequality. Increased financial globalization—and foreign direct investment in particular—has also played a role in increasing inequality, but contrary to popular belief, increased trade globalization is associated with a decline in inequality. It is important to ensure that the gains from globalization and technological advances are more broadly shared across the population. Reforms to strengthen education and training would help ensure that workers have the appropriate skills for the evolving global economy. Policies that broaden the access of finance to the poor would also help, as would further trade liberalization that boosts agricultural exports from developing countries. Over the past two decades, income inequality
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This note was uploaded on 03/10/2010 for the course ECON 1092 taught by Professor Suntif during the Spring '07 term at STLCOP.

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[IMF World Economic Outlook] Globalization and Inequality - Chapter 4. Globalization and Inequality(

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