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22. Core Support for the New Economy
- Author:
- Neva Goodwin
- Publication Date:
- 06-2016
- Content Type:
- Working Paper
- Institution:
- Global Development and Environment Institute at Tufts University
- Abstract:
- This paper proposes an income guarantee that would be defined as compensation for household activities such as childcare, food preparation, care of elderly or ill persons in the home, maintenance of the home and of household vehicles and appliances, and household-based transportation. I will call it Core Support, or CS. The Core Support proposal is put forth as a way to achieve a number of important goals, including reduction of poverty and inequality, increased fairness and better old-age security, and improved possibilities for good child care and education. It could replace much of the burdensome and expensive apparatus of welfare and some other government programs. Rather than providing a handout, it would expressly reward and enable some of the unpaid work on which every society depends, validating these activities as legitimate labor. As described in this proposal, it could have a significant impact in healthy redefinition of gender norms. In addition, the proposed program would reduce the requirement for all members of society to take paid work, thus rebalancing power between employers and employees. By reducing the pressure to create jobs, regardless of their quality or their impact, it would make it easier to cease production of socially or environmentally harmful goods and services. However, it would create a not inconsiderable amount of new work in managing the program. Depending on whether there is too much, or too little, demand for labor in the macroeconomy, this could be desirable, or not. This idea builds on literature on Basic Income Guarantees (BIG), as well as on some work in feminist economics. The latter tends to be skeptical of BIG proposals. It is hoped that the CS proposal, by addressing intra-household allocations – a topic normally absent from BIG proposals – can respond to this skepticism by showing how a basic income system can be designed so as to promote deep cultural changes in gender norms and widen respect for those who do the essential core work of a society. If it is assumed that the CS funds depend on taxable income, then it would be necessary for the economy in which it is implemented to have a preexisting flow of money from the sale of privately produced goods and services; thus it would appear that this approach would not be feasible in poor countries. Hence, given a focus on the U.S. context, some attention will be paid to the question of how “wealthy” this country will be in coming decades. It is possible to imagine macroeconomic conditions in which people are “poor” because they lack money to buy needed goods and services that are in fact being produced in the economy. In this case the central bank could create money to be distributed in amounts that would enable local trade, benefiting both producers and households, and possibly leading to higher levels of output.
- Topic:
- Gender Issues, Poverty, Women, Inequality, and Economic Inequality
- Political Geography:
- Global Focus
23. A Europe For the Many, Not the Few: Time to reverse the course of inequality and poverty in Europe
- Author:
- Teresa Cavero
- Publication Date:
- 09-2015
- Content Type:
- Working Paper
- Institution:
- Oxfam Publishing
- Abstract:
- Europe is facing unacceptable levels of poverty and inequality. Instead of putting people first, policy decision making is increasingly influenced by wealthy elites who bend the rules to their advantage, worsening poverty and economic inequality, while steadily and significantly eroding democratic institutions. Austerity measures and unfair tax systems across Europe are skewed in favour of powerful vested interests. It is time to reverse the course of poverty and inequality in Europe, putting people first.
- Topic:
- Poverty, European Union, Economic Inequality, and Elites
- Political Geography:
- Europe
24. For Richer or Poorer: The capture of growth and politics in emerging economies
- Author:
- Alice Krozer
- Publication Date:
- 09-2015
- Content Type:
- Working Paper
- Institution:
- Oxfam Publishing
- Abstract:
- The emerging economies Brazil, China, India, Indonesia, Mexico, Russia, South Africa and Turkey - in short, the BRICSAMIT - have come to be considered the economic powerhouses of recent decades. Not only have these countries managed to reduce poverty; most have embarked on a steep economic growth path and play an increasingly influential role on the global scene. But today, all eight BRICSAMIT countries occupy the top ranks as some of the most unequal countries in the world. The price these countries - and millions of their citizens - pay for this is high. Excessive inequality hampers development prospects: negatively impacting growth potential, threatening poverty reduction, leading to mass migration flows and 'brain drain', and reducing opportunities for young people. This report, which was commissioned by civil society networks across the BRICSAMIT countries, aims to increase the urgency to tackle the structural causes of inequality by shedding light on the nature and scope of the issue in the BRICSAMIT, and the economic, political and social consequences these countries are now facing as a result.
- Topic:
- International Cooperation, Migration, Poverty, and Economic Inequality
- Political Geography:
- Africa, Russia, China, Europe, Indonesia, Turkey, Asia, South Africa, Brazil, South America, and Mexico
25. The Rise of the World’s Poorest Countries
- Author:
- Steven Radelet
- Publication Date:
- 10-2015
- Content Type:
- Journal Article
- Journal:
- Journal of Democracy
- Institution:
- National Endowment for Democracy
- Abstract:
- For more than two decades now, the majority of the world’s poorest countries have been making some of the fastest and biggest development gains in history. The momentous progress achieved since the early 1990s is unprecedented. One-billion people have been lifted out of extreme poverty, the child death rate has been cut in half, life expectancy has increased significantly, millions more girls are enrolled in school, deaths in civil wars have dropped by three-quarters, average incomes have almost doubled, food production has increased by half, and democracy has spread like never before in the world’s poorest countries, notwithstanding with many setbacks, obstacles, and imperfections along the way. Some of these gains—especially the declines in poverty and child mortality—rank among the greatest achievements in human history. Yet few people are aware that this progress is even happening.
- Topic:
- Poverty, Economic Inequality, Mortality, and Quality of Life
- Political Geography:
- Global Focus
26. Why is Chiapas Poor?
- Author:
- Dan Levy, Ricardo Hausmann, Miguel Angel Santos, Luis Espinoza, and Miguel Flores
- Publication Date:
- 07-2015
- Content Type:
- Working Paper
- Institution:
- The John F. Kennedy School of Government at Harvard University
- Abstract:
- No matter which way you look at it, Chiapas is the most backward of any state in Mexico. Its per capita income is the lowest of the 32 federal entities, at barely 40% of the national median (Figure 1). Its growth rate for the decade 2003-2013 was also the lowest (0.2%),1 causing the income gap separating Chiapas from the national average to increase from 53% to 60%. That is to say that today the average income for a worker in Mexico is two and a half times greater than the average in Chiapas. The two next poorest states, Oaxaca and Guerrero, are 25% and 30% above Chiapas.2 According to the Instituto Nacional de Estadística y Geografía de México (INEGI, National Institute of Statistics and Geography), Chiapas is also the state with the highest poverty rate (74.7%) as well as extreme poverty (46.7%).3 These major differences in income levels among Mexican federal entities are reproduced as in a fractal within Chiapas. In fact, while the wealthiest entity (Mexico City) is wealthier than the poorest (Chiapas) by a factor of six, the difference within Chiapas between the wealthiest municipality (Tuxtla Gutiérrez) and the poorest (Aldama and Mitontic) is by a factor greater than eight.4 As there are different "Mexicos" within Mexico,5 in Chiapas there are also different sorts of Chiapas (Figure 2). Income per capita in Tuxtla Gutiérrez, to the right of the distribution, is five standard deviations above the state average. Next comes a series of intermediate cities, San Cristóbal de las Casas, Comitán de Domínguez, Tapachula, and Reforma, between two and a half to four standard deviations above the average. The remaining municipalities of Chiapas follow (122 in all), clustered to the far left of the distribution. In addition, both the statistics available at the town level and our visits to various municipalities in Chiapas seem to indicate that significant differences also exist within these municipalities. From this vantage point, questions as to why Chiapas is poor, or what explains its significant backwardness compared to other areas of Mexico, become much more complex. Why do some regions in Chiapas have high income levels, while other regions remain stagnant, fully dependent on federal transfers and deprived from the benefits of modern life?
- Topic:
- Development, Poverty, Governance, and Economic Inequality
- Political Geography:
- Central America, Mexico, and Chiapas
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