Suchergebnisse

THE AUTHORS EXPLORE THE TWO-WAY RELATIONSHIP BETWEEN GLOBALIZATION AND INEQUALITY. THEY DISCUSS HOW AND WHY LIBERALS IGNORE OR DOWNPLAY INEQUALITY AND ARGUE THAT GLOBALIZATION CAN ONLY BE UNDERSTOOD BY INVESTIGATING SUCH FACTORS AS STATE STRENGTH, THE POWER RELATIONS UNDERPINNING INSTITUTIONS, THE SOURCES OF VALUES AND NORMS, THE RULES OF INTERNATIONAL SOCIETY, AND THE POWER POLITICS OF THE SUPPOSED TRANSNATIONAL CIVIL SOCIETY.

Using two unifying models and an empirical exercise, this paper presents and extends the main theories linking income distribution and growth, as well as the relevant empirical evidence. The first model integrates the political economy and imperfect capital markets theories while the second is a growth version of the prisoner's dilemma. The economy's growth rate is shown to fall with interest groups' rent-seeking abilities, as well as with the gap between rich and poor. It is not income inequality per se that matters, however, but inequality in the relative distribution of earning and political power.