Global inequality: Bringing politics back in

Data on contemporary global inequality are dramatic, widely known and a new conventional backdrop. In research and policy economists lead the way and the emphasis is on global poverty rather than inequality. Within nations poverty is a challenge, while inequality is not; on a world scale, arguably it is the other way round. The international policy focus on poverty alleviation coexists with neoliberal policies that widen inequality domestically and internationally. A strategic question is where the data depart from the conventional wisdom. Thus a general assumption is that inequality within countries is largest in poor countries; the widest inequality, however, is found within the USA and UK. The conventional assumption is that neoliberal policies and free trade lift all tides; those countries and periods, however, where this policy has been most consistently implemented show the steepest increase in inequality. Global inequality helps sustain domestic privilege. The belief that the risks that global inequality poses can be contained in the global margins is contradicted by the cross-border effects of environmental degradation, migration, transnational crime and terrorism. In explaining global inequality, economic accounts ignore inequal relations of power. The combined policies of developmental discipline, global integration, and marginalisation and containment may be viewed as part of a single process of hierarchical integration, which has turbulence built in.     

Ethiopian female domestic labour migration to the Middle East: patterns,trends, and drivers

ABSTRACT

This paper examines the trends, patterns, and determinants of Ethiopian domestic labour migration to Arab countries. The primary motive behind migration is to move out of poverty and to improve family living standards through remittances. Migration to Arab countries has intensified due to social networks, expansion of illegal agencies, and the relative fall of migration costs. This movement is also the result of a shift in demand away from Asian domestic workers who tend to seek higher wages, to cheap labour source countries such as Ethiopia. This underlines not only the complexity of human mobility across national borders but also indicates the importance of conceptualising this movement in a broader global perspective, going beyond the traditional push-pull factors embedded in origin and destination countries. Female domestic migrants have received marginal attention from policy-makers and their vulnerability to various forms of abuse and exploitation has continued over the years.     

全球治理中的中国进程:以中国减贫治理为例

随着新兴大国的崛起,传统上由西方世界主导的全球治理体系开始受到来自世界多极化的挑战。以减贫领域为例,中国国内贫困治理的成功经验为全球减贫治理提供了多样化的解决方案。中国减贫治理强调主权国家在贫困治理中的主导性作用,国内各种社会力量的整合运用,通过发展解决贫困问题,立足国情、有效利用国际援助及对外援助的去意识形态化。中国开始将这些来自国内实践的有效经验合理整合到全球减贫议程中,促进相关治理机制改革及内容调整,进而为其他发展中国家的国内贫困治理提供极具参考价值的理念和方法。     

Do Social Protection Transfers Reduce Poverty and Vulnerability to Poverty in Pakistan? Household Level Evidence from Punjab

Empirical studies in different developing countries have investigated the impact of social protection (SP) on ex-post poverty; however, few studies analysed the impact of SP on ex-ante vulnerability to poverty (VtP). This paper contributes to the literature by evaluating the impact of SP on vulnerability to poverty (VtP) and poverty rates among households in the Punjab province of Pakistan. A hierarchical modelling approach is used to analyse the Multiple Indicator Cluster Survey (MICS-2011) data of about 90,000 households. Matching methods and simultaneous endogenous switching regression are used to control for potential selection bias and estimate average treatment effects. Our results show that SP has a positive impact in reducing household poverty and VtP, but this impact is mainly driven by a short-term flood relief cash transfer programme, pension of government employees and households’ regular purchase from utility store network.     

Editor's note

Abstract

In this article the author investigates the degree to which regional political relationships as well as domestic political stability have changed as a result of the Gulf War. As the countries of the former Warsaw Pact, Latin America, and elsewhere attempt to democratize, often with American support, the countries of the Gulf, at least on the governmental level, appear largely immune to this trend. This is belied somewhat by popular desires for political liberalization as well as cynicism about America's aims in the region. The political future and stability of this key part of the world is further complicated by the changing relations between Iran and Saudi Arabia who share a distrust for Iraq if little else. Thus, despite the Gulf War, many of the key issues that have traditionally influenced the Gulf region remain salient even after significant modifications in the status of the regional power‐holders.     

Dependency and Development in a Globalized World: Looking Back and Forward

The principles of analysis proposed 40 years ago by Cardoso and Faletto in Dependency and Development in Latin America provide a fruitful way to understand divergent patterns of development in the contemporary era of globalization. This set of analytic principles combines a focus on distinct modes of national insertion into the global economy with a focus on the balance of domestic class forces, the capacity of state institutions, and contingent choices by political actors to explain the contrasting developmental fortunes of countries. The contributors to this special issue demonstrate the vitality of these principles by harnessing them to the dual task of explaining how countries respond to the challenges of globalization and the consequences of these responses. The critical, macroscopic, and possibilistic approach to political economy taken by the contributors offers an exciting and powerful way to understand the problems of development in our globalized world.     

Civil war and the coalition government of democratic Kampuchea

This article explores the relationship between the politics of international development and the reproduction of global inequality. I argue that contemporary discourses about— and the practices of—‘development for developing countries’ represent an attempt to reconstitute the political utility of the ‘Third World’. In an era of globalisation the deployment of the notion of a Third World of ‘developing countries’ which require immediate, systemic attention through the discourse and practice of international development continues to provide a way of both disciplining and displacing the global dimension of social and political struggle. I refer to this dynamic in terms of the political utility of the Third World, which, I argue, has been conducive to the organisation of global capitalism and the management of social and political contradictions of inequality and poverty. I develop this argument by drawing on the historical implications and legacy of ‘international development’ as practised in and on the Third World and through a critical analysis of the methodological premises that constitute international development. I illustrate this by drawing on a key strategy aimed ostensibly at development: the Poverty Reduction Strategy Papers (prsp) approach, promulgated by the World Bank and the imf, which I discuss in relation to the ‘development agenda’ inaugurated during the 1999 wto meeting in Doha (Qatar). I argue that the ideology and practice of the global politics of international development reinforce the conditions of global inequality, and must be transcended as both an analytical framework and an organising principle of world politics. While the prsp and related approaches are currently presented as key elements in the building of the ‘architecture for (international) development’, what is emerging is a form of governance that attempts to foreclose social and political alternatives.     

The true extent of global poverty and hunger: questioning the good news narrative of the Millennium Development Goals

The final report on the Millennium Development Goals (MDGs) concludes that the project has been ‘the most successful anti-poverty movement in history’. Two key claims underpin this narrative: that global poverty has been cut in half, and global hunger nearly in half, since 1990. This good-news narrative has been touted by the United Nations and has been widely repeated by the media. But closer inspection reveals that the UN’s claims about poverty and hunger are misleading, and even intentionally inaccurate. The MDGs have used targeted statistical manipulation to make it seem as though the poverty and hunger trends have been improving when in fact they have worsened. In addition, the MDGs use definitions of poverty and hunger that dramatically underestimate the scale likely of these problems. In reality, around four billion people remain in poverty today, and around two billion remain hungry – more than ever before in history, and between two and four times what the UN would have us believe. The implications of this reality are profound. Worsening poverty and hunger trends indicate that our present model of development is not working and needs to be fundamentally rethought.     

Can poverty be funny? The serious use of humour as a strategy of public engagement for global justice

This article examines the use of humour as a strategy to promote increased public engagement in the countries of the global North with issues of global justice. The central argument of the article is that humour can be both an ethical and an effective way of attracting and sustaining public engagement in struggles for global justice. There are risks and limits to the use of humour to represent issues of poverty and injustice but, given low levels of public engagement in these issues in the countries of the global North, humour is a risk worth taking.     

Miserly Developments

We measure the level of poverty in the midst of affluence using what we denote the miser index. We calculate the index of poverty-induced polarisation for a number of countries. The most miserly countries are in Southern Africa and Latin America. Miserly countries tend to be socially fractionalised, bureaucratically inefficient, and politically corrupt. They provide low levels of healthcare and education. Considering the world as a single entity, we find a dramatic rise in global miserliness over the last 30 years going from the level of Colombia to that of South Africa.

For one very rich man, there must be at least five hundred poor, and the affluence of the few supposes the indigence of the many. (Adam Smith, 1776: 232)     

Domestic actors and liberalization: a case study of internal and external pressures in Moi's Kenya

The diffusion of political and economic liberalization to countries all across the world over the last 30 years has raised questions about the influence of domestic and international actors. Most scholars have given credit to international actors such as the USA, Western European countries, the International Monetary Fund (IMF), and the World Bank for the spread of liberalization or any political openness and/or market-oriented reform. Their external-actors-focused explanations have been almost exclusively at the expense of domestic actors. They have essentially viewed domestic actors as simply receivers of liberalizing change or incapable of initiating reform. As a result, international development policies and programs have tended to focus on what these external actors can do to force other countries to liberalize. While recognizing the influence of these external actors, this article reverses this emphasis and notes that the focus should be on internal actors and factors, primarily social movements/groups and opposition political polities that are agitating for reform. This article is a case study on Kenya that shows how domestic factors and actors pressured the Moi government to embrace reform starting in the 1980s.     

Africa's prospects and South Africa's leadership potential in the emerging markets century

This article examines Africa's role in an evolving international system where powerful emerging markets, such as bric, together with established powers are shaping economic trajectories. The specific focus is on South Africa as an aspiring leader on the African continent, and on its potential for becoming an emerging market shaping the global order together with bric and the West. It is unclear whether a changing global economy in which the postcolonial world plays a greater role will result in improved developmental prospects for Africans as African countries gradually reorient themselves from the West to the South, or whether relations with emerging markets will resemble neo-colonial ties with the West. South Africa's structural weakness, stemming from serious domestic problems of a social, political and economic nature, threatens to undermine its standing in Africa and its emerging market status.     

No end to poverty

This commentary is designed to provide a critique of Jeffrey Sachs' The End of Poverty: How We Can Make It Happen In Our Lifetime, highlighting in particular the difficulties that arise from his focus on absolute poverty and his proposed recipe for its elimination. It begins by emphasising the many strengths of Sachs' arguments, but then suggests that these could usefully be tempered by greater attention to relative conceptualisations of poverty and the ethical grounds upon which his arguments are based. Six main issues are subsequently addressed: his use of the notion of a ladder of development; his concentration on countries rather than people; his understandings of geography and of history; his relative lack of attention to social and cultural dimensions of development; the inability of poor countries to absorb the levels of aid that he proposes; and the damage caused by suggesting that it is indeed possible to end poverty.     

The impact of the gender composition of households on inequality and poverty: a comparison across Russia and Eastern Europe

This study compares poverty and income distribution among gender subgroups in Russia and four East European countries—Bulgaria, Romania, Hungary and Poland—in 2000. Does the gender poverty gap exist in these countries and if yes, how big is it? How much does the level of gender inequality contribute to explaining the level of aggregate inequality and poverty within each country? To what extent may the differences emerging in cross-country comparisons of poverty and inequality be explained by differences in the gender composition of households, e.g., the prevalence of female-dominated households? These are the questions I seek to answer in this paper.Equivalent expenditure is adopted as a measure of economic welfare of households with different gender ratios. The gender gap is defined as the degree of distance between the economic welfare of households dominated by women and households dominated by men. Headcount poverty and average poverty shortfalls are calculated using relative poverty lines. Inequality is measured by Gini and Theil L coefficients.     

Global poverty and inequality: are the revised estimates open to an alternative interpretation?

The level of, and trends in, global inequality and global poverty are indicative assessments of who has benefited from economic growth. The revision of price data has led to a reassessment of those estimates. Through an extensive overview of the implications, we argue that the data can be read in different ways. Official estimates show global extreme poverty and global inequality are considerably lower than previously thought. We argue that these changes are much less significant than they at first appear, and we present a more nuanced alternative interpretation by exploring changes across the entire global distribution.     

Bolsa Família and democracy in Brazil

The conditional cash transfer (CCT) programme Bolsa Família (Family Allowance), introduced in Brazil in 2003, is one of the largest such programmes in the world. Bolsa Família has played a role in the recent reduction of poverty and income inequality in Brazil. But what has been its impact on democracy? An assumption in the literature on social policy, derived from the European experience, is that targeted programmes such as Bolsa Família divide citizens, erode trust between citizens and between citizens and the state, and weaken democracy. This article challenges that assumption, showing that there is considerable evidence that Bolsa Família has strengthened the citizenship rights of the poor and enhanced democracy. The Brazilian experience suggests that, in highly unequal developing countries under conditions of 21st-century capitalism, the argument that targeted social programmes will inevitably undermine democracy is incorrect.     

Growth and Poverty Revisited from a Multidimensional Perspective

The actual impact of economic growth on poverty reduction is of fundamental importance to the development agenda. This paper offers new empirical evidence on growth and poverty measured from a multidimensional perspective using the global Multidimensional Poverty Index. Results from a First Difference Estimator Model suggest that while economic growth reduces multidimensional poverty, this impact is well below a one-to-one relationship and lower than the impact of growth on income poverty. Results from a cross-section model additionally suggest that countries with higher levels of exports, higher share of industry and services and higher control of corruption have lower multidimensional poverty.     

Aid as an encounter at the interface: the complexity of the global fight against poverty

International development discourse has recently shifted its focus from top‐down economic adjustment to participative anti‐poverty policy. This shift hints at an acknowledgement of the local complexities within the poverty process and at a need to listen to and develop actions with the ‘poor’. But, whereas the mainstream argument remains couched in a technical framework, we argue that the fight against poverty is inevitably political. Conceptualising the aid industry as a set of global–local interfaces, it follows that a closer look at ‘participation’ in anti‐poverty interventions is needed to come to grips with the political issues involved. Four issues are discussed: the complexity of local ‘participation’, given the ‘polycephalous’ character of third world societies; the power biases in the aid chain; the potential problem of ‘false consciousness’; and the ambiguities of the role of local development brokers. We conclude that anti‐poverty policy is in need of ‘interface experts’, who, through ‘provocation’ can beget ‘participation’.     

‘We Are All Poor Here’: Economic Difference,Social Divisiveness and Targeting Cash Transfers in Sub-Saharan Africa

While the central thrust of Michael Lipton's work has been the crucial role of productivity gains in small farm agriculture for rural poverty reduction, in many sub-Saharan African countries this desirable outcome has stubbornly refused to materialise, and growing numbers of rural poor people are found persistently to fail to secure even minimal acceptable levels of food consumption. A social protection policy response is to target social cash transfers to the chronic extreme poor. This article focuses on the level of cash transfers relative to income differences between households in the bottom half of the income distribution, and the social tensions that arise from beneficiary selection and exclusion. It is found that cash transfers to target groups such as ‘the poorest 10 per cent’ or the ‘ultra-poor labour constrained’ must be set low, even below the welfare levels they seek to achieve, if they are to avoid socially invidious reshuffling of the income distribution. The article identifies critical trade-offs between the cost and coverage of different types of social transfer, their social acceptability and their political traction, helping to explain the reluctance of governments to adopt scaled-up poverty-targeted transfers as the preferred form of social cash transfer to those most in need in their societies.     

Production,prices and poverty in rural India

This paper challenges the view that increases in agricultural production have reduced poverty in rural India. Rural poverty is related directly to the consumer price index number for agricultural labourers, and inversely to agricultural production. The underlying time trend term indicates a residual rising trend in rural poverty after accounting for the influence of these two factors. There are plausible, though conjectural, reasons for believing that to a significant extent, the price factor as well as the variables implicit in the time trend term both derive their strength, if not their existence, from the nature of the growth processes which have generated the observed growth in agricultural production. These results contradict Ahluwalia's earlier conclusions, even though they are themselves based on essentially the same data set.