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ABSURDIST REPUBLIC

Posts tagged with "Inequality"

Inequality in Middle Income Countries

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Andy McKay, Tim Conway, Ed Anderson, Joy Moncrieffe, Laure-Hélène Piron and Tammie O'Neil, with Simon Maxwell
Poverty and Public Policy Group
Overseas Development Institute, UK


Country case studies addressing growth, inequality and poverty reduction in Brazil, China and South Africa, were presented at the project workshop held in London on 4-5 December 2003. Fitting within an overall project approach based on a conceptual paper on inequality in Middle Income Countries (MICs) prepared by ODI, the findings formed the basis for an overall synthesis report and briefing note also prepared by ODI and feeding into ongoing DFID discussions on inequality and their Middle Income Country Strategy. The workshop also involved presentations from other leading agencies and researchers working on inequality.

Prepared as part of a DFID-funded project seeking to increase understanding of the links between growth, inequality and poverty reduction in MICSs, the Concept and Synthesis papers prepared by ODI survey the key conceptual issues relating to the understanding of inequality, and policy responses to it.

The motivation for the overall project is that Middle Income Countries account for substantial absolute levels of global poverty and deprivation despite the fact that their average income levels are higher compared to Low Income Countries. This reflects high levels of inequality in many cases. Such high (and sometimes increasing) levels of inequalities threaten to be a major barrier to the attainment of the MDGs in Middle Income Countries, as well as globally. They also represent important risks to social stability and progress, as well as being unjust in their own right to the extent that they reflect widespread social exclusion and discrimination. In other words, the focus on inequality in this project is both for instrumental reasons (its likely impact on poverty reduction, growth rates and social stability) and for intrinsic reasons (high levels of inequality being undesirable in and of themselves).

The project focussed on both economic and non-economic aspects of inequality, recognising that the latter (social, political and governance dimensions) are currently less well understood.

For this work programme, briefing papers (downloadable below) on inequality previously prepared by ODI for DFID also provide relevant background by reviewing issues in relation to (i) concepts and measurement of inequality; (ii) the economic links between inequality, poverty reduction and growth; and (iii) policy issues in responding to inequality.

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China breaks the iron rice bowl: An uncertain future for a two-tier society

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By Martine Bulard
Le Monde diplomatique
Issue: January 2006


China has moved into fourth position in the league table of world economies, but only a third of its population has access to the new temple of consumerism. The rural poor, internal imigrants and laid-off workers suffer worst from the gross new inequalities.

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Public Sentiment and Income Distribution

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By Zhang Jun
The Economic Observer
2007-04-13


Not long ago I bumped into professor Zheng of the Korean National University (KNU). Four years ago when I taught at KNU, the professor of econometrics and I we were very close, and I was happy to have the opportunity to ask him about the economic problems facing Korea today.

Korea is on the brink of a presidential election, says Zheng, and many Koreans are hoping that the government will change hands as early as possible. The current government is besieged on all fronts, and due to left-leaning economic policy, Korea's economy has disappointed many. Rising unemployment rates and a spike in housing prices have caused the complaints of average citizens to crescendo.

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Grey Income: A Report Causes an Uproar

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By Ma Guochuan
The Economic Observer
2007-06-11


"At the top of the income ladder there's a large quantity of unrecorded income that is causing income disparity in China to grow. Urban families at the top ten percent of the income bracket are now making 31 times more than those at the bottom ten percent, and not the nine times that statistics previously indicated. In the rural areas the multiplier can reach 55, contradicting current statistics that put it at 21. China's actual income disparity far outstretches what current statistics show. Because data is insufficient, it's then hard to calculate the Gini coefficient, but it is clearly beyond the World Bank's calculation of 0.45."

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McDonald's, KFC under fire for labor rights violations

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By Guo Qiang
China Daily
2007-03-28


Four-yuan Scheme

What can a part-time Chinese employee of McDonald's can afford by his hourly pay?

Only two small ice creams, which are valued at four yuan (US50cents).

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Rural Chinese Families Feel Migration's Strains

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Rural Chinese Families Feel Migration's Strains
Holiday Underlines Toll of Distant Jobs
By Maureen Fan
The Washington Post
February 18, 2007


GUIHUA, China -- For years now, nearly half the rice, wheat and vegetable farmers in this village in Henan province have been unable to make a living off their land. They have turned instead to more profitable migrant work in large, faraway cities.

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How to Create Populists

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By Robert B. Reich
The American Prospect
Volume 18, Issue 1
January 2007


Our tax, trade, and immigration policies all increase our widening inequality

Several years ago I had a philosophical conversation with my good friend and Cabinet colleague Bob Rubin over lunch in the White House mess.

Cabinet members rarely talk philosophy. There isn't time. Mostly, they talk about how to put out the next fire. But on this rare occasion, Bob and I found ourselves talking philosophically.

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The Great Leap Forward

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The Observer
January 21, 2007


China's first generation of only children is waving goodbye to the Party and saying hello to Prada and Ferrari. Carole Cadwalladr joins the millionaires turning Shanghai into the biggest boom town in history

The last time the Chinese police really captured the world's attention was back in 1989, when they appeared on the TV hitting Chinese students over the head with big sticks. They still have the sticks, it turns out, and the ability to look impassive in the face of a large and determined crowd. But outside the Shanghai Oriental Arts Centre, more than anything else they just look a bit confused. There are people waving thick white invitations at them and bunches of flowers.

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Is Democracy Good for the Poor?

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Democracy's No Panacea for Poverty, Study Finds
By Judy Lin
UCLA International Institute
8 Nov 2006


Michael Ross, a UCLA political scientist, concluded that democratic countries do no better than their non-democratic counterparts in helping the world's poorest citizens — a troubling finding, he said, that contradicts the claims made by a generation of scholars.

My analysis suggests that what's happening is that this additional money spent by democracies tends to ultimately go to the middle and upper classes.

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In Rural China, A Time Bomb is Ticking

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By Joshua Muldavin
International Herald Tribune
JANUARY 1, 2006


(Joshua Muldavin, a professor of geography and Asian studies at Sarah Lawrence College, New York, is writing a book on the environmental and social impacts of China's development path.)

NEW YORK The recent police killing in China's Guangdong Province of as many as 20 villagers who were protesting the government's seizure of land for a power plant is symptomatic of an emerging pattern of rural unrest that challenges the very legitimacy of the Chinese state and the development path on which it has embarked.
China's fabulous growth since the 1980s was achieved through environmental destruction and social and economic polarization which now threaten its continuation. This paradox puts the state in near panic as it tries to hold down the resulting widespread unrest in the countryside. While rural strife is not new - in 1994, I witnessed thousands of peasants in Henan Province fight a local government militia over unpopular taxation and state policies - its scope and frequency have increased greatly.
Rural unrest is the biggest political problem China faces today, even though lethal violence in such events is rare. In 2004, according to official estimates, there were 74,000 uprisings throughout the country - a result of widening gaps between rich and poor, and between urban and rural areas, and between the rapidly growing industrial east and the stagnating agricultural hinterlands.
Guangdong - a booming epicenter of foreign direct investment, with thousands of new factories of global as well as Chinese corporations - embodies these inequalities most intensely. It is not surprising that the province has become a focus of resistance to development as peasant lands are overrun with industries.

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