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Suggested Citation: Suggested Citation. Street, N. Subscribe to this free journal for more curated articles on this topic. International Trade eJournal. Subscribe to this fee journal for more curated articles on this topic.

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Global Inequality: A New Approach for the Age of Globalization by Branko Milanovic

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By Martin Ravallion. By Branko Milanovic. We use cookies to help provide and enhance our service and tailor content.

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  2. Economics for public policy.
  3. Poverty, population, inequality, and development in historical perspective?
  4. This page was processed by aws-apollo2 in 0. Other than the raising of children, it was the mutual help and — indeed gender-skewed — sharing of non-commercialised activities that was the key economic rationale for the family. As this erodes we can expect, in the long term, an increase in single-member households, and in numbers of people who have never partnered or married.

    So if capitalism has spread so much in all directions, why do we speak of its crisis?

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    Because we focus on the malaise of the western middle classes and the rise of populism. But the dissatisfaction with globalised capitalism is not universal: a YouGov survey showed a very high degree of support for globalisation in Asia, with the lowest support in the US and France. The western malaise is the product of uneven distribution of the gains from globalisation.

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    The outcome was the opposite. Asia in particular was a beneficiary, especially the most populous countries: China, India, Vietnam and Indonesia. It is the gap between the expectations entertained by the middle classes and the low growth in their incomes that has fuelled dissatisfaction with globalisation and, by association, with capitalism. There is however another issue that does seem to affect most countries, and it is to do with the functioning of political systems. In principle, politics, no more than leisure time, was never regarded as an area of market transaction.

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    But both have become so. This has made politics more corrupt.

    Branko Milanovic on Globalization, inequality and the powerlessness of policy

    Even if a politician does not engage in explicit corruption during their time in office, they tend to use the connections acquired to make money afterwards. Such commodification has created widespread cynicism and disenchantment with mainstream politics and politicians. While politics as entrepreneurship was often seen to afflict only less developed countries, it has now spread to Europe. The crisis therefore is not of capitalism per se, but a crisis brought about by the uneven effects of globalisation and the expansion of capitalism to areas traditionally not considered apt for commercialisation.

    Capitalism has thus become too powerful, and in regions such as Europe, it is in collision with strongly held beliefs. Topics Economics Europe now.