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Unformatted text preview: 3-2 PovertyReadings Wade (2004)Sachs (2005, Ch. 12-15) – see LAA’s e-mail (“Sachs”) for linksHarrison (2006)Notes (Days)11/10 and 11/12Also see your Assignment #3 on global financial crisis (if it talks about poverty)Outline~ Wade: “Is Globalization Reducing Poverty and Inequality?” Main opinion: Globalization increasing inequality, poverty, wealth gaps-questions neoliberal argumento(neoliberal argument: distribution of income between all people has become more equal and the number of people living in extreme poverty has fallen over the past two decades)o(The core solution for lagging regions, Africa above all, is freer domestic and international trade and more open financial markets, leading to deeper integration into the world economy.)-Evidence in:oGNP per capita as % of “core” GNP per capita, 1960-1980-1999oDistribution of world income (PPP-adjusted) by region and income percentiles, 1990 and 1999-On poverty:o$2/day poverty line still below conventional “minimum” relative poverty line of half the world’s median incomeoAuthor’s change in definition of world poverty line (PPP-adjusted) significantly changes poverty ratesoWorld Bank underestimates poverty numbers, makes the trend look brighteroBut it is plausible that the proportionof the world’s population living in extreme poverty has fallen over the past 20 years-On inequality:a.World income distribution has become rapidly more unequal, when incomes are measured at market exchange rates and expressed in US dollars.b.World PPP-income polarization has increased, with polarization measured as richest to poorest 10thpercentile.c.Between-country world PPP-income inequality has increased since at least 1980, using per capita GDPs, equal country weights (China=Uganda), and a coefficient like the Gini for the whole distribution.d.Between-country world PPP-income inequality has been constant or falling since around 1980, with countries weighted by population.e.Several serious studies find that world PPP-income inequality has increased over a period within the past two to three decades, taking account of both between- and within-country distributions.i.Variants: measure of inequality, sampled countries, time period, sources of income dataf.Pay inequality within countries was stable or declining from the early 1960s to 1980–1982, then sharply and continuously increased to the present. 1980–82 is a turning point toward greater inequality in present....
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This note was uploaded on 04/19/2010 for the course ECON 0430 taught by Professor Arroyoabad during the Fall '10 term at Middlebury.
- Fall '10