Inequality and Development in a Globalizing World—Syllabus

Nancy BirdsallSpring 2006SAIS Bologna

Description

Primarily economic analysis of the consequences of inequality in the developing world, and of the effects of increasingly open trade and capital markets on poverty and on inequality withinand across countries. Effects of within-country inequality on economic growth and ondevelopment of human and social capital and political institutions. Implications of globalmarkets, including market failures, for inequality within developing countries and betweendeveloped and developing countries. Effects of global market imperfections and failures andof differences across countries in economic power on trade, capital, international migrationand other global regimes. Concept of global social contract: Role of global economicinstitutions (IMF, World Bank, bilateral aid programs) in addressing unequal opportunity andglobal market failures.

Course outline

IntroductionPart I. Does within-country inequality (or only poverty) matter for development?Part II. Is globalization (open markets) reducing inequality within countries? Acrosscountries? Are open markets good for development?Part III. Are global rules and institutions reducing global inequality and advancing development?

INTRODUCTION Week 1. The debate about globalization, poverty and inequality

OptimistsBhagwati, Jagdish. 2004.

In Defense of Globalization.

New York, NY: Oxford University Press.Bhalla, Surjit. 2002.

Imagine There's No Country. Poverty, Inequality, and Growth in the Era of Globalization.

Washington, DC: Institute for International Economics.http://bookstore.iie.com/merchant.mvc?Screen=PROD&Product_Code=348 Dollar, David. 2004. "Globalization, Poverty, and Inequality Since 1980." World Bank Policy Research Working Paper 3333.http://econ.worldbank.org/external/default/main?pagePK=64165259&theSitePK=469382&piPK=64165421&menuPK=64166093&entityID=000112742_20040928090739 Sala-i-Martin, Xavier. 2002. “The World Distribution of Income (estimated from individualcountry distributions).” National Bureau of Economic Research Working Paper 8933. Wolf, Martin. 2004.

Why Globalization Works.

New Haven, CT: Yale University Press.Doubters and/or data drivenBardhan, Pranab. 2005. “Globalization, Inequality and Poverty: An Overview” University of California, Berkeley.http://globetrotter.berkeley.edu/macarthur/inequality/papers/BardhanGlobalOverview.pdf Bourguignon, Francois, and Christian Morrison. 2002. “Inequality Among WorldCitizens: 1820-1992.”

American Economic Review

92(4): 727-44.Lindert, Peter H. and Jeffrey G. Williamson. 2001. "Does Globalization Make the World MoreUnequal?" National Bureau of Economic Research Working Paper 8228.Milanovic, Branko. 2002. “Can We Discern the Effect of Globalization on Income Distribution?Evidence from Household Budget Surveys." World Bank Policy Research Working Paper 2876.http://econ.worldbank.org/external/default/main?pagePK=64165259&theSitePK=469382&piPK=64165421&menuPK=64166093&entityID=000094946_0209060421403 Pritchett, Lant. 1995. “Divergence, Big Time.” World Bank Policy Research Paper 1522.http://wdsbeta.worldbank.org/external/default/WDSContentServer/IW3P/IB/1995/10/01/000009265_3961019150217/Rendered/PDF/multi0page.pdf PessimistsCornia, Giovanni, Andrea. 2003. “The Impact of Liberalisation and Globalisation on IncomeInequality in Developing and Transitional Economies.” CESIFO Working Paper 843.http://www.cesifo.de/pls/guestci/download/CESifo%20Working%20Papers%202003/CESifo%20Working%20Papers%20January%202003%20/cesifo_wp843.pdf

Stiglitz, Joseph. 2002.

Globalization and Its Discontents.

New York, NY: Norton & Company, Inc. Wade, Robert. 2004. “Is Globalization Reducing Poverty and Inequality?”

World Development

32(4): 567-589.NEF. 2006. "Growth Isn't Working. The Unbalanced Distribution of Benefits and Costs fromEconomic Growth." National Economics Foundation Report.http://www.neweconomics.org/gen/uploads/hrfu5w555mzd3f55m2vqwty502022006112929.pdf

Websites

ActionAidhttp://www.actionaid.org Center for Global Developmenthttp://www.cgdev.org/section/topics/globalizationGlobalization and Inequality Group hosted by the Brookings Institution and the Center forGlobal Developmenthttp://www.brookings.edu/gs/research/projects/glig/glig_hp.htmOxfamhttp://www.oxfam.org/eng World Bank Globalization pagehttp://www1.worldbank.org/economicpolicy/globalization/index.html

PART I: DOES WITHIN-COUNTRY INEQUALITY (OR ONLY POVERTY)MATTER FOR DEVELOPMENT? Week 2: Inequality (and Poverty, Mobility, Equity, Capacities, Opportunity): Concepts,Data, Relationships

World Bank. 2001.

World Development Report 2000/01: Attacking Poverty.

(Overview chapter).http://siteresources.worldbank.org/INTPOVERTY/Resources/WDR/overview.pdf World Bank. 2005.

World Development Report 2006: Equity and Development

, (Overview chapter).http://wdsbeta.worldbank.org/external/default/WDSContentServer/IW3P/IB/2005/09/20/000112742_20050920110826/additional/841401968_200508263001833.pdf Inter-American Development Bank. 1999.

Facing Up to Inequality in Latin America.

(Overview chapter).http://www.iadb.org/res/index.cfm?fuseaction=Publications.View&pub_id=B-1998-1999Milanovic, Branko. 2005.

“Worlds Apart: Measuring International and Global Inequality.”

Princeton,NJ: Princeton University Press.Deaton, Angus. 2003. “Measuring Poverty.” Princeton University.http://wws.princeton.edu/rpds/downloads/deaton_povertymeasured.pdf Frank, Robert. 2005. “Are Concerns About Relative Income Relevant for Public Policy?Positional Externalities Cause Large and Preventable Welfare Losses.”

American Economic Review

95(2): 137-141.