To those who have everything,
more shall be given.
Global inequality just
keeps growing.
Rich countries get richer and
poor get poorer.
Nope...that's Dead Wrong.
At least it's dead wrong now.
It used to be true.
For 150 years, poor countries
lost ground to rich countries.
And that was a bit of a mystery
to economists, since it should
be easier to catch up than to
find new paths to growth, for example,
by using technologies
and practices developed elsewhere.
But it didn't happen, so in the
1990s, economists concluded that
the world is an unequal place,
and the norm is divergence- big time!
But just as they did...the
world changed.
A new paper from Center for
Global Development looks at
three different datasets of
global income per capita, and
they all show that poor
countries started growing faster
than rich countries in
the 1990s.
These economies had only grown
slower because they had been
held back by horrors like
communism, protectionism and war.
Once they started to escape
them, they accelerated and prospered.
Since the Berlin Wall fell in
1989, global inequality as
measured by the gini coefficient
has declined for the first time
since the Industrial Revolution,
from 67 to 57.
The unequal distribution of
wealth is a result of the
unequal distribution
of capitalism.
Those who have capitalism grow
rich, those who don't, stay poor.
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