May 5, 2015

Homework Help: english please revise

Posted by christi on Sunday, February 10, 2008 at 12:26am.

The Evolution of Inequality

James K. Galbraith, a Government/ Business professor at the University of Texas in Austin, has gathered data and other sources to analyze the evolution of inequality in the world at large. Galbraith in junction with a group of students has created UTIP (University of Texas Inequality Project) a small research group whom measure and explain movements of global inequality. With the UTIP data, one can review changes in global inequality both across countries and through time.
So, why measure inequality? According to Galbraith, “measuring changes in inequality helps determine the effectiveness of policies aimed at affecting inequality and generates the data necessary to use inequality as a as an explanatory variable in policy analysis”. However, measuring, gathering, and uncovering new information is not simple. Dr. Galbraith’s methods to measure the rise or fall of inequality consist of three ways. The first way is “Un-weighted between countries”, which he concludes has been rising. This first way of measuring inequality does not include income, population or what is going on within that country, such as policy making, revolution, or war.
The second way is “weighted between –Countries”, with this method Dr. Galbraith concludes that inequality is decreasing. A reason for this decrease is China. Dr. Galbraith global graph of inequality from 1987 to 2000 demonstrates China’s contribution to inequality in a number of regions. The monopolized activity such as transport, utilities and banking, specifically in the richer areas has increased. The method allows mapping changes in the flow of incomes across the regions and across sectors very accurately through time, using national data resources and without relying on sample surveys. However, manufacturing and constructions with in the same regions have declined. Another graph demonstrates the oil boom of 1970-1976, inequality declines in the producing states, but rises in the industrial oil consuming countries, such as the United States.
Finally, the third way of measuring inequality is “With-in the country”. However, this measure is in question. Dr. Galbraith explains that existing studies of “true” world income inequality data source is poor. Especially in communist countries were data sources are not easily uncovered.
Dr. Galbraith concludes with the notion that inequality rose in most countries in the age of globalization. He also mentions that a major force of inequality came from high interest rates. During the “Age of Debt”, Latin America economies dependent only on primary products, barrowed more than they needed from western banks, the instability of money coming into the countries resulted in the lack of interest payment on their loans. After 9/11 interest stayed low from 2002 to 2004 for much of the world, and much of the world stopped paying their debt. China built its own reserve, borrowing money and not having to pay interest.
A resolution to the world’s inequality, Dr. Galbraith claims, “We need new governance”. The World Bank has failed to stabilize the world economy. He claims that the World Bank’s theoretical explanations of changing inequality rests on premises long ago demolished on logical grounds. He then closes his presentation saying, “Some day we’ll need a new system of world financial governance”.

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