Reshaping global
capitalism
Addressing the causes of inequality
Monika Sie Dhian Ho
Frans Bieckmann
http://www.thebrokeronline.eu/en/Dossiers/Inequality
Debate at The Broker
http://www.thebrokeronline.eu/Blogs/Ine
• more than 40 opinion pieces
• Rolph van der Hoeven, Stephan Klasen, Harry
Boyte,...
Introduction
•
•
•
•

different forms of inequality: the numbers
explaining inequality: some common causes
broken promises...
different forms of inequality
Inequality: the numbers
1.
1.

1.

1.

Unequal people:

80 percent of the world’s population now live in very unequal pla...
Explaining inequality
Man-made forces of politics rather than
‘unavoidable and economic’ forces of nature:
 Historical an...
Broken promises of economic theory
Inequality is good for growth
Wealth accumulation at the top will trickle-down
‘Things ...
The urgency of reshaping global capitalism
Normative reasons
Instrumental reasons
 High inequality hinders growth



...
some points for debate
• how to combine the many separate discussions
and more or less loose academic debates into
one coh...
Towards a more inclusive and
sustainable capitalism
• Broadening our policy goals: inclusive and
sustainable global develo...
Post 2015
Reshaping global capitalism: addressing the causes of inequality - presentation by Frans Bieckmann and Monika Sie Dhian Ho
Reshaping global capitalism: addressing the causes of inequality - presentation by Frans Bieckmann and Monika Sie Dhian Ho
Upcoming SlideShare
Loading in …5
×

Reshaping global capitalism: addressing the causes of inequality - presentation by Frans Bieckmann and Monika Sie Dhian Ho

484 views
328 views

Published on

Frans Bieckmann, Monika Sie Dhian Ho

For the occasion of The Development Studies Association Annual Conference 2013
16 November 2013, Birmingham
Panel 25: Inequality and the Post 2015 Agenda, organised by the Broker
http://thebrokeronline.eu/Articles/Inequality-is-politics

Published in: Technology, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
484
On SlideShare
0
From Embeds
0
Number of Embeds
108
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Reshaping global capitalism: addressing the causes of inequality - presentation by Frans Bieckmann and Monika Sie Dhian Ho

  1. 1. Reshaping global capitalism Addressing the causes of inequality Monika Sie Dhian Ho Frans Bieckmann
  2. 2. http://www.thebrokeronline.eu/en/Dossiers/Inequality
  3. 3. Debate at The Broker
  4. 4. http://www.thebrokeronline.eu/Blogs/Ine • more than 40 opinion pieces • Rolph van der Hoeven, Stephan Klasen, Harry Boyte, Francine Mestrum, Charles Gore, David Woodward, Andrew Berg & Jonathan Ostry, Martin Ravallion, Adam Wagstaff, Ricardo Fuentes Nieva, Andy Sumner & Alex Cobham, Amanda Lenhardt & Andrew Shepherd, Lars Engberg-Pedersen, Francisco Ferreira, Nick Galasso, … and many others
  5. 5. Introduction • • • • different forms of inequality: the numbers explaining inequality: some common causes broken promises of economic theory the urgency of reshaping global financialized capitalism • towards a more inclusive and sustainable capitalism
  6. 6. different forms of inequality
  7. 7. Inequality: the numbers 1. 1. 1. 1. Unequal people:  80 percent of the world’s population now live in very unequal places.  In many countries, levels of inequality have risen over the past decades Unequal countries:  If we count each country the same, inequality between countries continues to rise,  High growth rates in China and India exert downward pressure on populationweighted intercountry inequality Unequal world:  Global inequality is extremely high  Global inequality has increased steadily since the 19th century, with China and India exerting downward pressure however on global inequality since mid-1980s Unequal tails:  Middle income groups (deciles 5 to 9) capture around half of GNI.  Rest is shared between the richest 10 percent and the poorest 40 percent, but the share of those two groups varies considerably across countries
  8. 8. Explaining inequality Man-made forces of politics rather than ‘unavoidable and economic’ forces of nature:  Historical and unique explanations (e.g. Latin America)  Our focus: common driving forces:  Political choice to apply neo-classical theory  Winner-take-all-politics (Palma: ‘its the share of the rich, stupid’)
  9. 9. Broken promises of economic theory Inequality is good for growth Wealth accumulation at the top will trickle-down ‘Things have to get worse before they can get better’ Globalization will be accompanied by convergence in countries’ incomes Globalization will have a positive effect on withincountries inequality
  10. 10. The urgency of reshaping global capitalism Normative reasons Instrumental reasons  High inequality hinders growth     It hinders the development of human capital It negatively affects aggregate demand It negatively affects entrepeneurship It leads to political polarization, lower social trust, excessive rentseeking by a rich elite  High inequality correlates with financial instability  High inequality correlates with social problems  High inequality (high Palma values) correlates with slow progress on MDG poverty targets
  11. 11. some points for debate • how to combine the many separate discussions and more or less loose academic debates into one coherent and comprehensive narrative with real political appeal, that can seriously challenge the prevailing economic model and policies? • What elements are lacking for such a narrative? What are the contradictions, dilemmas, obstacles, incoherencies in thinking? • What concrete policies can we propose? At the national level and at the global level (Post 2015)?
  12. 12. Towards a more inclusive and sustainable capitalism • Broadening our policy goals: inclusive and sustainable global development • Improving our policy theory to achieve these goals • Creating new alliances and breaking the mechanisms of winner-take-all-politics
  13. 13. Post 2015

×