Posted by hkarner - 15. Februar 2017
Posted on February 13, 2017 by iMFdirect
In the past two decades, low-income economies have seen a rise in growth, with fewer living in poverty. Yet inequality in many countries has remained virtually unchanged.
A recent IMF paper explains how the design of policies can matter to spread the economic benefits of growth more broadly.
Over the long haul, reforms can indeed yield bridges, banks, firms and fields of grain. But these take time, and the poorest cannot always wait for the transformation without additional help. Hence, in the short run, governments need to complement reform policies with redistribution. For example, they can use targeted cash transfers to farmers who suddenly lose a grain subsidy, a more progressive tax system to distribute burdens more fairly, or more accessible banking services. Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Growth, IMF, Inequality | Leave a Comment »
Posted by hkarner - 26. Januar 2017
Michael Spence, a Nobel laureate in economics, is Professor of Economics at NYU’s Stern School of Business, Distinguished Visiting Fellow at the Council on Foreign Relations, Senior Fellow at the Hoover Institution at Stanford University, Academic Board Chairman of the Asia Global Institute in Hong Kong, and Chair of the World Economic Forum Global Agenda Council on New Growth Models. He was the chairman of the independent Commission on Growth and Development, an international body that from 2006-2010 analyzed opportunities for global economic growth, and is the author of The Next Convergence – The Future of Economic Growth in a Multispeed World.
JAN 25, 2017 Project Syndicate
MILAN – Successful economic globalization requires reasonably successful growth patterns in individual countries. That dynamic characterized the 30 years or so after World War II: growth rates were relatively high across a wide range of countries; their benefits were broadly shared within countries; and the rise of developing countries reduced global inequality. This period was arguably the heyday of globalization.
Of course, globalization continued through the 1970s and beyond. But the underlying growth patterns changed. Driven by the labor arbitrage embedded in economic globalization and the rise of disruptive digital technologies, advanced economies’ middle-class manufacturing jobs disappeared, their median incomes stagnated, and job and income polarization grew, even as GDP growth remained strong. This new pattern – which persisted through the 1980s and 1990s, and accelerated after 2000 – caused inequality to rise sharply, weakening the foundations of globalization. Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Europe, Growth, Inequality, Populism, Project Syndicate, Spence, Trump | Leave a Comment »
Posted by hkarner - 25. Januar 2017
Posted on January 24, 2017 by iMFdirect
By Prakash Loungani
Four years ago, at the World Economic Forum in Davos, IMF Managing Director Christine Lagarde warned of the dangers of rising inequality, a topic that has now risen to the very top of the global policy agenda.
While the IMF’s work on inequality has attracted the most attention, it is one of several new areas into which the institution has branched out in recent years. A unifying framework for all this work can be summarized in two words: Inclusive growth.
We want growth, but we also want to make sure:
- that people have jobs—this is the basis for people to feel included in society and to have a sense of dignity;
- that women and men have equal opportunities to participate in the economy—hence our focus on gender;
- that the poor and the middle class share in the prosperity of a country—hence the work on inequality and shared prosperity;
- that, as happens, for instance when countries discover natural resources, wealth is not captured by a few—this is why we worry about corruption and governance;
- that there is financial inclusion—which makes a difference in investment, food security and health outcomes; and
- that growth is shared just not among this generation but with future generations—hence our work on building resilience to climate change and natural disasters.
In short, a common thread through all our initiatives is that they seek to promote inclusion—an opportunity for everyone to make a better life for themselves. Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Growth, IMF, Inclusion, Inequality, Loungani, WEF | Leave a Comment »
Posted by hkarner - 22. Januar 2017
Kemal Derviş, former Minister of Economic Affairs of Turkey and former Administrator for the United Nations Development Program (UNDP), is a vice president of the Brookings Institution.
Karim Foda is a research analyst at the Brookings Institution.
JAN 19, 2017 Project Syndicate
WASHINGTON, DC – Most economies are seeking a recipe for inclusive economic growth, whereby high rates of investment, rapid innovation, and strong GDP gains are pursued alongside measures to reduce income inequality. Conservatives insist that growth requires low taxes and incentives such as flexible labor markets to encourage entrepreneurship. But reducing inequality requires higher levels of government spending and taxation (except when government is pursuing deficit spending to stimulate a depressed economy).
The Scandinavian economic model is often invoked to bridge this gap. The Danish “flexicurity” system, in particular, has historically delivered solid economic performance alongside low inequality. Leading economists such as Philippe Aghion have published excellent analyses of how this model could balance growth, equality, and overall satisfaction of citizens elsewhere in the world.
These economists argue that labor markets with few restrictions on hiring and firing, low taxes on entrepreneurship, and generous incentives for innovation are compatible with a relatively equal income distribution, high social spending by government, and equalizing social policies such as universal free education. Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Dervis, Flexicurity, Foda, Inclusion, Inequality, Project Syndicate | Leave a Comment »
Posted by hkarner - 20. Januar 2017
It is amazing to see the NYT take such a (correct) stance! (hfk)
Source: The New York Times By PETER S. GOODMAN
What It Is Like to Be in Davos
For most of the year, Davos is a resort town high in the Swiss Alps. But for two weeks each January, the global elite descend on the town in what could be described as the world’s most expensive networking event.
DAVOS, Switzerland — You have perhaps noticed that in many countries, history-altering numbers of people have grown enraged at the economic elite and their tendency to hog the spoils of globalization. This wave of anger has delivered Donald J. Trump to the White House, sent Britain toward the exit of the European Union, and threatened the future of global trade.
The people gathered here this week in the Swiss Alps for the annual World Economic Forum have noticed this, too. They are the elite — heads of state, billionaire hedge fund managers, technology executives.
They are eager to talk about how to set things right, soothing the populist fury by making globalization a more lucrative proposition for the masses. Myriad panel discussions are focused on finding the best way to “reform capitalism,” make globalization work and revive the middle class. Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Elites, Inequality, NYT, Stiglitz, WEF | Leave a Comment »
Posted by hkarner - 18. Januar 2017
Alexandra Föderl-Schmid aus Davos, 18. Jänner 2017, 18:40 derstandard.at
Beim Weltwirtschaftsforum wird verstärkt über die Schattenseiten der Globalisierung diskutiert und darüber, was gegen Ungleichheit getan werden kann
Ein bisher kaum benutzter Begriff ist heuer in Davos plötzlich in aller Munde: die Mittelklasse. Auch US-Vizepräsident Joe Biden nahm in seiner Abschiedsrede darauf Bezug und rief dazu auf, dass man etwas tun müsse: Immer mehr Reichtum konzentriere sich auf immer weniger oben und immer mehr Menschen müssten kämpfen, um überhaupt im Mittelstand zu bleiben.
„Ausgepresst und zornig: Wie kann man die Mittelklassenkrise lösen“, lautete der Titel einer Podiumsdiskussion am Mittwoch, bei der rasch Einigkeit darüber herrscht, dass es diese Krise gebe. Die Chefin des Internationalen Währungsfonds, Christine Lagarde, machte die Politik dafür verantwortlich: „Die Menschen trauen der Regierung nicht mehr, haben keine Hoffnung und sind desillusioniert.“ Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Inequality, Lagarde, Middle Class, Standard, WEF | Leave a Comment »
Posted by hkarner - 17. Januar 2017
Moves toward more cashless societies could reduce inequality, a leading economist suggests, by potentially reducing crime and making labor practices more transparent.
Bloomberg reports that American economist Kenneth Rogoff, author of The Curse of Cash, thinks the world’s poor would be the “biggest beneficiaries” of demonetization, pointing to Scandinavia as a model.
Nordic countries stand at the “cutting edge” of cashless economy, Rogoff, who has worked as an advisor to Sweden’s central bank, told Bloomberg in an interview. Corruption and inequality are among the lowest in the world in Scandinavia, where only about 5% of money in circulation is cash.
Experiments in reducing cash have been less successful elsewhere, such as in India, where the infrastructure is less developed and demonetization caused a sudden shock to the country’s economy. Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Cashless, Demonetization, Fortune, Inequality, Rogoff | Leave a Comment »
Posted by hkarner - 15. Januar 2017
Source: Foreign Affairs: By Jeff Colgan
Why Tolerance and Equality Are Not Enough
Martin Luther King Jr. Day is a time for reflecting on the problems of racism, xenophobia, and the social distinctions that divide us. But the politics of 2016—from nativism in the United States to anti-immigrant sentiment in Europe, which facilitated the rise of President-elect Donald Trump and Brexit, respectively— suggest that in 2017, we might do well to adopt a different lens for viewing such issues.
One way to understand last year’s events is through a theory in social psychology known as “othering.” It explains how identity formation, as well as group cohesion, is facilitated in part by distinguishing oneself from those viewed as different. The distinction can be based on traits that are inherent, such as skin or eye color, or socially constructed, such as the distinction between Hutus and Tutsis. Identifying the “other” is part of what binds a group together, by creating mental rules for identifying who is in—and who is out. Othering can be pretty harmless, even beneficial, when it builds community among, say, sports fans rooting against the New York Yankees or the Dallas Cowboys (which is why sports leagues hype artificial rivalries between teams).
When it comes to national identity, though, othering carries substantial risks. Policymakers seem to have vastly underestimated the need for othering—and its consequences. Sure, scholars always knew it existed and there has been some good research on it. But many did not recognize the extent to which othering was a central threat to liberalism and globalization, and even started to think that cosmopolitan integration was inevitable. Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Colgan, Foreign Affairs, Inequality, Liberalism, Tolerance | Leave a Comment »
Posted by hkarner - 15. Januar 2017
Source: The Economist
Systems for continuous reskilling threaten to buttress inequality
IMAGINE YOU ARE a 45-year-old long-distance lorry driver. You never enjoyed school and left as soon as you could, with a smattering of qualifications and no great love of learning. The job is tiring and solitary, but it does at least seem to offer decent job security: driver shortages are a perennial complaint in the industry, and the average age of the workforce is high (48 in Britain), so the shortfalls are likely to get worse. America’s Bureau of Labour Statistics (BLS) says there were 1.8m truckers in 2014 and expects a 5% rise in their number by 2024. “As the economy grows, the demand for goods will increase and more truck drivers will be needed to keep supply chains moving,” predicts the BLS website, chirpily.
But the future might unfold very differently. For all the excitement over self-driving passenger cars, the freight industry is likely to adopt autonomous vehicles even faster. And according to a report in 2014 by Morgan Stanley, a bank, full automation might reduce the pool of American truck drivers by two-thirds. Those projections came hedged with caveats, and rightly so. The pace of adoption may be slowed by regulation. Drivers may still be needed to deal with unforeseen problems; if such jobs require more technical knowledge, they may even pay better. Employment in other sectors may grow as freight costs come down. But there is a chance that in the not too distant future a very large number of truckers will find themselves redundant. The implications are immense. Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Economist, Education, Inequality | Leave a Comment »
Posted by hkarner - 11. Januar 2017
Joseph E. Stiglitz
Joseph E. Stiglitz, recipient of the Nobel Memorial Prize in Economic Sciences in 2001 and the John Bates Clark Medal in 1979, is University Professor at Columbia University, Co-Chair of the High-Level Expert Group on the Measurement of Economic Performance and Social Progress at the OECD, and Chief Economist of the Roosevelt Institute. A former senior vice president and chief economist of the World Bank and chair of the US president’s Council of Economic Advisers under Bill Clinton, in 2000 he founded the Initiative for Policy Dialogue, a think tank on international development based at Columbia University. His most recent book is The Euro: How a Common Currency Threatens the Future of Europe.
JAN 10, 2017 Project Syndicate
NEW YORK – On January 20, 2017, Donald Trump will be inaugurated as the 45th President of the United States. I would hate to say “I told you so,” but his election should not have come as a surprise. As I explained in my 2002 book Globalization and its Discontents, the policies we have used to manage globalization have sown the seeds of widespread disaffection. Ironically, a candidate from the same party that has pushed the hardest for international financial and trade integration won by promising to undo both.
Of course, there is no going back. China and India are now integrated into the global economy, and technological innovation is reducing the number of manufacturing jobs worldwide. Trump cannot recreate the well-paying manufacturing jobs of past decades; he can only push for advanced manufacturing, which requires higher skill sets and employs fewer people. Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Fed, Globalization, Inequality, Life Expectancy, Obama, Project Syndicate, Stiglitz, Trump, USA | Leave a Comment »