What Accounts for Income and Wealth Inequality Between Countries?
This is my own work and was written between October 2020 - December 2020 What Accounts for Income and Wealth Inequality Between Countries? The reasons for income and wealth inequality between countries is complex to answer, it is clear however, that global inequality is rising. Figure 1 shows global inequality has trended upwards since 1986 (Galbraith et al (2020)). This essay focuses on the reasons for inequality between developing and developed countries and will be viewed from the lens of the Developmentalism schools. It will be argued that the reasons for economic inequality between countries goes beyond the views of the conventional Developmentalism school. Income and wealth inequality will be considered within this essay as defined by Davies et al (2018). Developmentalism is an economic theory that argues increased trade from globalisation is a cause for global inequalities. The Prebisch-Singer hypothesis is a common explanation as to why globalisation causes inequalities, bei