Exploring income inequality in rural,coastal Viet Nam

Income inequality has been rising in parallel with the economic liberalisation process in the former centrally planned economies. The opportunities for non‐agricultural income associated with the market liberalisation process in former centrally planned economies would seem to be important in determining inequality within the rural sector. This article reviews the trends in inequality in Viet Nam examining differential trends and hypothesised causes. Inequality is important because of its relationship to other factors in the evolution of the agricultural economy such as the incidence of poverty and the sustainability of emerging income sources. This article analyses income inequality based on data collected by the author in two Districts in coastal northern Viet Nam. The results demonstrate that non‐agricultural income sources, specifically aquaculture and wage and remittance, contribute more to present inequality than any other income source. Simulation shows that the emergence of aquaculture since the late 1980s has been driving the inequality increase in that period. Hence the analysis provides evidence that non‐agricultural income increases inequality even without asset concentration. This concentration of income is important in the north Viet Nam context since it is concurrent with present‐day land allocation and will affect the structure of future income growth.     

Political parties,party systems,and economic reforms: The Turkish case

Turkey’s experience with economic reforms and democratization since the early 1980s underscores the importance of the political parties and the party systems in the interactions between these two processes. The country’s experience with democratic politics and a multiparty system made a significant contribution to the resumption of electoral politics and redemocratization following three years of military rule in the early 1980s. However, the opening up of the political space and the reemergence of competitive party politics ultimately created problems for the successful completion of the economic reforms, as one-party dominance and majority-party governments gave way to fragmentation in the party system with weak coalition governments. The Turkish case is instructive of the difficulties facing countries that seek to simultaneously consolidate their democracies and liberalize their economies. Sabri Sayari is executive director of the Institute of Turkish Studies and research professor at Georgetown University’s School of Foreign Service. He has written extensively on Turkey’s domestic politics and foreign policy, and on issues related to political development, parties and party systems, and democratization.     

Rural income and poverty in a time of radical change in Malawi

Malawi is one of the poorest countries in Africa. There is widespread, though not universal, agreement about the shape of poverty in the country and the policy challenge this sets. Agriculture continues to be the most obvious means to stimulate broad-based rural growth and to provide levels of food security and income needed for the majority rural population. A longitudinal study over a decade during which radical policy and political changes occurred provides the data and basis for discussing the appropriate policy directions for reducing poverty.     

Increasing income inequality and wealth concentration in the prosperous societies of the west

Since about 1980, personal income and wealth inequality in many western societies has increased. This is a reversal of the trend of diminishing socioeconomic inequality during the larger part of the twentieth century. Both trends are explained by relating them to the long-term growth of networks of interdependence. When and insofar as the development predominantly took place within national states, it led to the diminution of power differences between socioeconomic classes. In recent years, however, transnational relations of interdependence have intensified to such a degree that they bring about a weakening of interdependence within national states and increase inequality. Nico Wilterdink teaches sociology at the University of Amsterdam, the Netherlands. He also occupies the Norbert Elias chair in social sciences at Utrecht University.     

Democracy,property rights and economic growth

What does the global surge in democracy and capitalism portend for economic growth? The shift toward popular government is predicted by some to accelerate growth, by others to retard it. Often left out of the equation is property rights as a factor distinct from democratic rule. Using recent data on 59 less developed and transitional countries, this article explores the relationship among institutional factors and growth in the 1980s and early 1990s. Democratic freedoms and property rights are associated with the dependent variable, suggesting that national income in poor countries stands to gain from recent efforts to implant these institutions.     

Trade liberalisation,government expenditure and economic growth in Egypt

This article investigates the combined effects of growth in government expenditure, exports, investment and labour supply on economic growth in Egypt between 1955 and 1996. Using cointegration and error correction models, the article finds a long‐run relationship between the variables, but less evidence of one in the short run. To account for the important policy reforms in 1974 and 1991, dummy variables are added which show the reforms have significantly affected the relationship between government expenditure and growth in a positive direction, but have had a negative effect on exports and growth. This conclusion is further supported by the time‐varying coefficient analysis.     

Foreign direct investment,financial development and economic growth

This article argues that the development of the financial system of the recipient country is an important precondition for FDI to have a positive impact on economic growth. A more developed financial system positively contributes to the process of technological diffusion associated with FDI. The article empirically investigates the role the development of the financial system plays in enhancing the positive relationship between FDI and economic growth. The empirical investigation presented in the article strongly suggests that this is the case. Of the 67 countries in data set, 37 have a sufficiently developed financial system in order to let FDI contribute positively to economic growth. Most of these countries are in Latin America and Asia.     

The adequacy of income: A social dimension in economic development

The adequacy of income of a household may be defined as the ratio of its income to the income level required to achieve the conventional standard of living in the socio‐economic group to which the household belongs. This concept has greater relevance than that of income for the study of consumer behaviour (e.g. propensity to save) and other social behaviour and pathologies. Income and need for income in a country do not necessarily rise proportionately over time, thus resulting in periods of declining, as well as periods of rising, income adequacy. Furthermore, in spite of the international demonstration effect, the need for income in developing countries is significantly lower than in developed countries resulting in a much smaller gap between income adequacies than between incomes.     

International comparisons of income levels and growth rates

Development literature contains the hypothesis that middle income countries grow faster than other countries. This proposition has been related to a second hypothesis of stages and rates of growth, as well as to an ‘automatic mechanism’ for the reduction of international income disparities. This article examines the relevant evidence and finds the propositions unsupported by either theory or empirical data.