The Globalization of Inequality

In The Globalization of Inequality, distinguished economist and policymaker François Bourguignon examines the complex and paradoxical links between a vibrant world economy that has raised the living standard of over half a billion people in emerging nations such as China, India, and Brazil, and the exponentially increasing inequality within countries. Exploring globalization’s role in the evolution of inequality, Bourguignon takes an original and truly international approach to the decrease in inequality between nations, the increase in inequality within nations, and the policies that might moderate inequality’s negative effects. Demonstrating that in a globalized world it becomes harder to separate out the factors leading to domestic or international inequality, Bourguignon examines each trend through a variety of sources, and looks at how these inequalities sometimes balance each other out or reinforce one another. Factoring in the most recent economic crisis, Bourguignon investigates why inequality in some countries has dropped back to levels that have not existed for several decades, and he asks if these should be considered in the context of globalization or if they are in fact specific to individual nations. Ultimately, Bourguignon argues that it will be up to countries in the developed and developing world to implement better policies, even though globalization limits the scope for some potential redistributive instruments. An informed and original contribution to the current debates about inequality, this book will be essential reading for anyone who is interested in the future of the world economy. Endorsement: "In this season of tomes on inequality, François Bourguignon's book stands out for its ability to combine global sweep with attention to minutiae, its passionate concern for the world's burgeoning inequality, and dispassionate analysis of the causes behind these growing disparities. An amazing amount can be learned from this slim volume on inequality within and across nations."--Kaushik Basu, chief economist and senior vice president of the World Bank "François Bourguignon once again demonstrates his position as one of the world's leading thinkers on inequality. In this book, he stresses that careful attention must be paid to the distinction between global and national inequality. Bourguignon sets forth policies for achieving both convergence of global standards of living and economic efficiency, and he warns that inequality profoundly threatens social stability. May the hopeful part of his message prevail."--Gary Fields, author of Working Hard, Working Poor: A Global Journey "In this tour de force, François Bourguignon shows how the seemingly paradoxical phenomena of rising inequality within countries and falling inequality between countries are related to each other, and caused by globalization. Written in a style accessible to a general audience, this excellent work by a global leader in inequality analysis will have lasting value."--Ravi Kanbur, Cornell University "This book deals with extremely topical issues related to inequality. Bourguignon is exceptionally well-qualified to provide an overview of recent trends, tease out the implications of the global-versus-national perspective on inequality, and seriously examine the factors at work as well as promising policy responses."--Brian Nolan, University of Oxford "An excellent treatment of a very important subject from a leading researcher in the field."--Stephan Klasen, University of Göttingen

Foreword to the English Edition vii Introduction: Globalization and Inequality 1 Chapter 1 Global Inequality 9 Appendix to Chapter 1 Detailed Evidence on the Recent Changes in Global Inequality 41 Chapter 2 Are Countries Becoming More Unequal? 47 Chapter 3 Globalization and the Forces behind the Rise in Inequality 74 Chapter 4 Toward a Fair Globalization: Prospects and Principles 117 Chapter 5 Which Policies for a Fairer Globalization? 146 Conclusion Globalizing Equality? 184 Index 191

François Bourguignon is a professor at the Collège de France, Paris, and former director at the Paris School of Economics. From 2003 to 2007 he was chief economist and senior vice president of the World Bank. Bourguignon was made a Chevalier of the National Order of the Legion of Honor in 2010.

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