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81. Thinking Clearly about Economic Inequality

Author:
Will Wilkinson
Publication Date:
07-2009
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
Recent discussions of economic inequality, marked by a lack of clarity and care, have confused the public about the meaning and moral significance of rising income inequality. Income statistics paint a misleading picture of real standards of living and real economic inequality. Several strands of evidence about real standards of living suggest a very different picture of the trends in economic inequality. In any case, the dispersion of incomes at any given time has, at best, a tenuous connection to human welfare or social justice. The pattern of incomes is affected by both morally desirable and undesirable mechanisms. When injustice or wrongdoing increases income inequality, the problem is the original malign cause, not the resulting inequality. Many thinkers mistake national populations for “society” and thereby obscure the real story about the effects of trade and immigration on welfare, equality, and justice. There is little evidence that high levels of income inequality lead down a slippery slope to the destruction of democracy and rule by the rich. The unequal political voice of the poor can be addressed only through policies that actually work to fight poverty and improve education. Income inequality is a dangerous distraction from the real problems: poverty, lack of economic opportunity, and systemic injustice.
Topic:
Democratization, Economics, and Social Stratification

82. The Illusion of Equality: The Educational Consequences of Blinding Weak States, For Example

Author:
Lant Pritchett and Martina Viarengo
Publication Date:
08-2009
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
Does the government control of school systems facilitate equality in school quality? There is a trade-off. On the one hand, government direct control of schools, typically through a large scale hierarchical organization, could produce equalization across schools by providing uniformity in inputs, standards, and teacher qualifications that localized individually managed schools could not achieve. But there is a tendency for large scale formal bureaucracies to “see” less and less of localized reality and hence to manage on the basis of a few simple, objective, and easily administratively verified characteristics (e.g. resources per student, formal teacher qualifications). Whether centralized or localized control produces more equality depends therefore not only on what “could” happen in principle but what does happen in practice. When government implementation capacity is weak, centralized control could lead to only the illusion of equality: in which central control of education with weak internal or external accountability actually allows for much greater inequalities across schools than entirely “uncontrolled” local schools. Data from Pakistan, using results from the LEAPS study, and from two states of India show much larger variance in school quality (adjusted for student characteristics) among the government schools—because of very poor public schools which continue in operation. We use the PISA data to estimate school specific learning achievement (in mathematics, science, and reading) net of individual student and school average background characteristics and compare public and private schools for 34 countries. For these countries there is, on average, exactly the same inequality in adjusted learning achievement across the private schools as across the public schools. But while inequality is the same on average, in some countries, such as Denmark, there was much more equality within the public sector while in others, such as Mexico, there was much more inequality among the public schools. Among the 18 non-OECD participating PISA countries the standard deviation across schools in adjusted quality was, on average, 36 percent higher in government than in private schools. In cases with weak states the proximate cause of high inequality again was that the public sector distribution of performance had a long left tail—schools with extremely poor performance. Relying on blinded weak states for top-down control of educational systems can be lose-lose relative to localized systems relying on bottom-up control—producing worse average performance and higher inequality.
Topic:
Economics, Education, Government, Political Economy, and Social Stratification
Political Geography:
Pakistan and India

83. Vulnerability and Resilience of the Middle Class in Latin America

Author:
Alberto Minujin and Guillermina Comas
Publication Date:
02-2009
Content Type:
Working Paper
Institution:
The New School Graduate Program in International Affairs
Abstract:
This paper analyzes the vulnerability of the middle class in Latin America in face of the neo-liberal policies implemented in the region during recent decades and discusses possible policies and programs that promote the building and strengthening of democratic processes throughout the region. Changes in the Latin American middle class are examined. An important part of the middle class can be active participants in the process of building democracy and developing inclusive and equitable societies. This will require the implementation of policies and programs that promote the participation of the middle class in the public sphere.
Topic:
Democratization, Development, and Social Stratification
Political Geography:
Latin America

84. State Elites and the New Poverty Agenda in Bangladesh

Author:
Neil Webster, Zarina Rahman Khan, Abu Hossain Muhammad Ahsan, Akhter Hussain, and Mahbubur Rahmani
Publication Date:
10-2009
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The New Poverty Agenda (NPA) refers to policies and approaches that the developing countries pursue for poverty reduction with the financial assistance of the donor countries and seeks to secure ownership of the political and bureaucratic elites. This paper seeks to analyse the Poverty Reduction Strategy Paper (PRSP) as part of this process in Bangladesh and to look at role of the state elites in it. The PRSP process in Bangladesh clearly indicates the key role played by the bureaucrats in its formulation and implementation. Civil society though playing a progressively important role in influencing policy agenda mostly backed up the bureaucracy. Introduction of the PRSP replacing the earlier Five Year Plans did not change the approach towards dealing with development rather transformed the way to do things. It ushered in a qualitative change in planning and development policy implementation as a population begins to assert itself upon the politics of the state elites.
Topic:
Government, Poverty, and Social Stratification
Political Geography:
Bangladesh and South Asia

85. Regional Inequality and Convergence in Europe, 1995 – 2005

Author:
Arne Melchior
Publication Date:
11-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper presents new results on within-country regional inequality in per capita income for 36 countries during 1995-2005; focusing on Europe but with some non-European countries included for comparison. In 23 of the 36 countries there was a significant increase in regional inequality during the period, and in only three cases there was a reduction. Regional inequality increased in all countries of Central and Eastern Europe, while for most Western European countries there was little change. For the EU-27 as a whole, there was a modest increase in within-country regional inequality, but convergence across countries. The latter effect was quantitatively more important, so on the whole there was income convergence in the EU-27, especially after 2000. Regional inequality is particularly important for some large middle-income countries such as China, Russia and Mexico. In such countries there may however be considerable price differences across regions, and the use of common price deflators for the whole country may lead to a biased assessment of regional inequality.
Topic:
Economics, Political Economy, Social Stratification, and Sociology
Political Geography:
Russia, China, Europe, and Mexico

86. Does HAVA Help the Have-Nots? U.S. Adoption of New Election Equipment, 1980-2008

Author:
Daniel K. N. Johnson and Kristina M. Lybecker
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Department of Economics and Business, Colorado College
Abstract:
During the tabulation of votes in the 2000 presidential election, the world was shocked at the technological inadequacy of electoral equipment in many parts of the US. In reaction to public dismay over "hanging chads", Congress quickly enacted the Help America Vote Act (HAVA), legislation to fund the acquisition of advanced vote-counting technology. However, the intention was to enable, rather than mandate, choices of new electoral equipment. This paper takes advantage of a unique historical opportunity to test whether electoral equipment follows the pattern predicted by well-established models of innovation diffusion, merging electoral data with census data on socioeconomic characteristics. We infer that fiscal constraints to acquisition are strong but are not the only limitations to technology adoption, particularly within certain types of easily identifiable populations.
Topic:
Democratization, Politics, and Social Stratification
Political Geography:
United States

87. Model Comparison and Simulation for Hierarchical Models: Analyzing Rural-Urban Migration in Thailand

Author:
Filiz Garip and Bruce Western
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
Sociological research often examines the effects of social context with hierarchical models. In these applications, individuals are nested in social contexts-like school classes, neighborhoods or villages-whose effects are thought to shape individual outcomes. Although applications of hierarchical models are common in sociology, analysis usually focuses on inference for fixed parameters. Researchers seldom study model fit or examine aggregate patterns of variation implied by model parameters. We present an analysis of Thai migration data, in which survey respondents are nested within villages and report annual migration information. We study a variety of hierarchical models, investigating model fit with DIC and posterior predictive statistics. We also describe a simulation to study how different initial distributions of migration across villages produce increasing inter-village inequality in migration.
Topic:
Migration, Social Stratification, and Sociology
Political Geography:
Asia, Thailand, and Southeast Asia

88. Remapping Inequality in Europe: The Net Effect of Regional Integration on Total Income Inequality in the European Union

Author:
Jason Beckfield
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
Research on the determinants of inequality has implicated globalization in the increased income inequality observed in many advanced capitalist countries since the 1970s. Meanwhile, a different form of international embeddedness — regional integration — has largely escaped attention. Regional integration, conceptualized as the construction of international economy and polity within negotiated regions, should matter for inequality. This paper offers theoretical arguments that distinguish globalization from regional integration, connects regional integration to inequality through multiple theoretical mechanisms, develops hypotheses on the relationship between regional integration and inequality, and reports fresh empirical evidence on the net effect of regional integration on inequality in Western Europe. Three classes of models are used in the analysis: (1) time-series models where region-year is the unit of analysis, (2) panel models where country-year is the unit of analysis, and (3) analysis of variance to identify how the between- and within-country components of income inequality have changed over time. The evidence suggests that regional integration remaps inequality in Europe. Regionalization is associated with both a decrease in between-country inequality, and an increase in within-country inequality. The analysis of variance shows that the net effect is negative, and that within-country inequality now comprises a larger proportion of total income inequality.
Topic:
Economics, Globalization, and Social Stratification
Political Geography:
Europe

89. Colonial Land Tenure, Electoral Competition and Public Goods in India

Author:
Abhijit Banerjee and Lakshmi Iyer
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
Social scientists have long emphasized the importance of institutions in nurturing economic growth and development. Douglass C. North defines institutions as the “rules of the game in a society” which limit the set of choices for individuals and argues that institutions, both formal ones such as laws and constitutions, as well as informal ones such as social norms, are important in determining the transaction costs of production and exchange, and thereby have an impact on economic growth. He goes on to discuss the mostly incremental nature of institutional change and highlights the difficulties in implementing radical institutional change. This line of argument therefore suggests that the impacts of institutions are likely to be felt for a very long time, and hence points to the need for detailed historical analysis over long periods in order to quantify the impact of institutions.
Topic:
Economics, Political Theory, and Social Stratification
Political Geography:
India and Asia

90. President Evo Morales Ayma of Bolivia

Author:
Evo Morales
Publication Date:
11-2008
Content Type:
Video
Institution:
Columbia University World Leaders Forum
Abstract:
This World Leaders Forum program features a keynote address by President Evo Morales Ayma of Bolivia followed by a question and answer session with the audience.
Topic:
Democratization, Politics, War on Drugs, International Affairs, and Social Stratification
Political Geography:
Latin America and Bolivia