Income distribution:

Briefing them about rent, Wages, Intrest and profit.

International Economics:
Changing Scenario, globalisation, structural adustment
programme, stabilization policy, The multinational
corporation, IBRD,IMF,GATT,WTO,ITO,IDA,IFC,MIGA
Income Distribution
income distribution covers how a country's total GDP is
distributed amongst its population.[1] Economic theory
and economic policy have long seen income and its distribution
as a central concern. Classical economists such as Adam
Smith (1723–1790), Thomas Malthus (1766–1834), and David
Ricardo (1772–1823) concentrated their attention on factor
income-distribution, that is, the distribution of income between
the primary factors of production (land, labour and capital).
Modern economists have also addressed issues of income
distribution, but have focused more on the distribution of income
across individuals and households. Important theoretical and
policy concerns include the balance between income inequality
and economic growth, and their often inverse relationship.[2]
The Lorenz curve can represent the distribution of income within
a society. The Lorenz curve is closely associated with measures
of income inequality, such as the Gini coefficient.
Income Distribution

• The central place that Ricardo accorded the subject of income

distribution in 19th century Political Economy is appropriate also in
21st century SocioEconomics. Although the Öeld was relatively
neglected by economists for several decades, in the last Öfteen years
there has been a resurgence of interest driven partly by
developments in economic theory and partly by major developments
in the interpersonal income distributions within many developed
countries (Atkinson 1997). In recent years the subject of economic
inequality has developed in such a way as to have a life of its own
separate from the obvious connection with the distribution of
income, the distribution of wealth, the structure of wages and other
related empirical topics. This distinct area of study has been built
upon new insights in welfare economics and on the relationship to
information theory (Cowell 2000, Sen and Foster 1997).
• Income distribution is extremely important for
development, since it influences the cohesion of
society, determines the extent of poverty for any
given average per capita income and the poverty-
reducing effects of growth, and even affects people’s
health. The paper reviews the connections between
income distribution and economic growth. It finds
that the Kuznets hypothesis that income distribution
worsens as levels of income increase is not at all
strongly supported by the evidence, while growth
rates of income are not systematically related to
changes in income distribution. However, evidence is
accumulating that more equal income distribution
raises economic growth. Both political and economic
explanations have been advanced. The finding
suggests that more equal income distribution is
desirable both for equity and for promoting growth.
Strategies to promote more egalitarian growth are
reviewed, with examples given. However, although these
strategies seem both feasible and desirable, in the 1980s
and 1990s there has been a strong tendency for income
distribution to worsen in both developed and developing
countries. A variety of explanations as to the cause for this
have been advanced including trade liberalization,
technology change, and the impact of liberalization and
globalization more generally. Most of the paper is
concerned with the distribution of pre-tax household
income. A brief survey of findings on the incidence of
taxation and expenditure shows that tax incidence is often
neutral, or proportionate to income, and occasionally
either progressive or regressive. In contrast, the incidence
of public expenditure is mostly progressive, so an increase
in the levels of taxation and expenditure would tend to
improve the distribution of welfare. Little direct evidence
has been collected on the distribution of measures of well-
being, such as human development indicators, but there is
strong evidence that health achievements are related to
income levels, while average societal health standards tend
to worsen as inequality increases.
Most of the paper, along with much of the literature, is
devoted to exploring the traditional concept of vertical
income distribution The paper points to the importance
of examining horizontal inequalities (or inequalities
between groups divided on religious, ethnic, racial or
other cultural grounds), since these are closely related to
societal stability. In conclusion, all the analysis and
evidence points to the desirability of achieving egalitarian
income distribution for development. Yet current trends
seem to be going in the opposite direction.
International Economics
• International economics is concerned with the effects upon economic
activity from international differences in productive resources and
consumer preferences and the international institutions that affect them. It
seeks to explain the patterns and consequences of transactions and
interactions between the inhabitants of different countries, including trade,
investment and transaction.[1]
• International trade studies goods-and-services flows across international
boundaries from supply-and-demand factors, economic
integration, international factor movements, and policy variables such
as tariff rates and trade quotas.[2]
• International finance studies the flow of capital across international
financial markets, and the effects of these movements on exchange
rates.[3]
• International monetary economics and
international macroeconomics study flows of money across countries
and the resulting effects on their economies as a whole.[4]
• International political economy, a sub-category of international
relations, studies issues and impacts from for example international
conflicts, international negotiations, and international sanctions; national
security and economic nationalism; and international agreements and
observance.[5]
• International Economics is the study of economic interactions
between countries. It addresses many topical issues, such
as:
• How is the rapid growth of trade with China and India likely
to affect the structure of production and wages in Europe?
Why have trade negotiations in the Doha round of the WTO
come to a standstill? Does this matter in the face of the rise
of ‘regionalism’? What are the effects of European Monetary
integration? How is the UK affected by its decision not to join
the Euro? How does financial crisis spread across countries?
What are the implications of the US sub-prime crisis and
resulting credit crunch likely to be for the UK?
• Broadly speaking, the field is split between the study of
International Trade, which extends microeconomics to open
economies, and International Finance, which employs
macroeconomic analysis.
• International Trade describes and predicts patterns of
production, trade and investment across countries. It also
looks at the effect that trade has on both the level and
distribution of incomes within and across countries. It
analyses different trade policies, the effects of ‘regionalism’
(regional trading blocs) and the potential effect of
multilateral trade negotiations conducted by World Trade
Organisation (WTO).
• International Finance examines the effects of financial
flows between countries. It looks at the effect of such flows
on the balance of payments and the exchange rate. It also
evaluates the implications of different exchange rate
regimes and considers the appropriate role of international
institutions such as the International Monetary Fund (IMF).
• Students of International Economics can make use of the
skills and tools learned in a wide range of career paths,
such as journalism, consultancy, government agencies and
international institutions, while at the same time enjoying
the ability to make sense of some of the most important
and complex issues of our times.
Structural Adjustment Programme
• Definition: Structural adjustment is a series of economic
policies designed to lessen the role of government in an
economy and move it closer to a market economy. The goal of
SAPs is to reduce scarcity and increase society's satisfaction --
to satisfy more of their unlimited wants.
• SAPs usually include several basic components geared
toward reducing inflation, promoting exports, meeting debt-
payment schedules, and decreasing budget deficits.
Stabilization Policy
INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT(IBRD)
IMF
• The International Development Association (IDA) is the part
of the World Bank that helps the world's poorest countries.
Established in 1960, IDA aims to reduce poverty by providing
loans (called “credits”) and grants for programs that boost
economic growth, reduce inequalities, and improve people's
living conditions.
• IDA is the part of the World Bank that helps the world's 74
poorest countries and is the single largest source of donor
funds for basic social services in these countries. ... Over the
past 60 years, IDA has provided about $422 billion for
investments in 114 countries.
IFC:- member of the World Bank Group, the International
Finance Corporation provides financing for private enterprise
investments in developing countries. The IFC says its focus is
eliminating poverty through economic development, but critics
claim it is more focused on profits than people.
IFC is an active issuer of ESG bonds also known as Socially
Responsible Investments. A subset of our loan portfolio is funded
through our established Green Bond program which finances
climate friendly projects and our Social Bond Program which
finances projects that aim to alleviate social issues.