Inequality

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  • This working paper examines the relationship between high inequality and liberalization of the financial sector in Latin America from 1975 to 2000. Using panel data, the authors find that increases in financial liberalization were associated with bank crises and other domestic and external shocks, and that higher schooling inequality reduces the impetus for liberalization brought on by bank crises.
  • Why do new democracies sometimes fail? This CGD brief by visiting fellow Ethan Kapstein explores the underlying reasons for frequent backsliding in the world's fledgling democracies and offers the international community recommendations for helping them stay on track toward political stability. Kapstein argues that the international community should encourage political arrangements in which government leaders are constrained by effective checks and balances, and economic policies that help to ensure that the benefits of growth are widely shared. Learn more
  • In an increasingly globalized world, inequality is an issue of rising concern, especially in Latin America, home to many of the world's most unequal societies. This new book, co-published by the Center for Global Development and the Inter-American Dialogue, describes the links between recent growth trends, changing patterns of inequality, and rising cynicism and frustration with the political leadership across the region. The authors, Nancy Birdsall, Augusto de la Torre, and Rachel Menezes, present a dozen economic policy tools to make life fairer for the great majority of people--without sacrificing economic growth. Learn More
  • The wellbeing of adolescent girls in developing countries shapes global economic and social prosperity -- yet girls' needs often are consigned to the margins of development policies and programs. This new report describes why and how to provide adolescent girls in developing countries a full and equal chance in life. Offering targeted recommendations for national and local governments, donor agencies, civil society, and the private sector, Girls Count provides a compelling starting point for country-specific agendas to recognize and foster girls' potential. Learn More
  • Shared growth—growth that helps to build a middle class—is now widely embraced as a central economic goal for developing countries. In this new working paper CGD president Nancy Birdsall reviews how macroeconomic policies shape incentives for inclusive growth, focusing on fiscal discipline; fair revenue and expenditure practices; and a business-friendly exchange rate. Relying heavily on the experience in Latin America and drawing lessons for other parts of the developing world, Birdsall argues that growth that strengthens the middle classes helps poor people, too. Learn More
  • While the threat of global warming is increasingly accepted, little attention has been paid to the likely impact at the country level, especially in the developing world. In this new book, Bill Cline, a joint senior fellow at CGD and the Peterson Institute for International Economics, provides the first ever estimates of the impact on agriculture by country, with a particular focus on the social and economic implications in China, India, Brazil, and the poor countries of the tropical belt in Africa and Latin America. His study shows that the long-term negative effects on world agriculture will be severe, and that developing countries will suffer first and worst.
  • Paul Collier's new book, The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It, argues that many developing countries are doing just fine and that the real development challenge is the 58 countries that are economically stagnant and caught in one or more "traps": armed conflict, natural resource dependence, poor governance, and geographic isolation. In a review of the book recently published in Foreign Affairs, CGD research fellow Michael Clemens explores whether or not Collier's proposed solutions constitute a practical middle path between William Easterly's development pessimism and Jeffrey Sach's development boosterism. Learn more
  • For the past decade, U.S. attention to Latin America has focused mainly on promotion of free trade and opposition to narcotics trafficking and security threats. But there are signs that Washington is beginning to recognize the importance of helping the region tackle longstanding poverty and social inequality. Candidates at this weekend's Democratic presidential debate called for a robust foreign policy in Latin America and the Bush administration has recently shown a renewed interest in promoting development and improving Washington's image in the region. This new brief by CGD president Nancy Birdsall and Inter-American Dialogue president Peter Hakim sets forth a practical agenda for how the U.S. can help. Examples: buttress free trade agreements with aid programs that compensate losers; include land redistribution and alternative employment programs in the so-called "war against drugs."
  • By any measure, the United States is one of the most open economies in the world—importing more than $1 trillion worth of goods duty-free in 2006 alone. Yet poor nations still pay much higher U.S. tariffs than rich countries—an average of 15 percent on a quarter of their imports, compared to 2-5 percent for rich countries. Not only is this unfair, it also undermines American interests by hindering growth in the poorest countries, thereby making them more vulnerable to epidemic diseases, terrorists, and transnational criminal organizations. In this new CGD Brief, senior fellow Kimberly Ann Elliott makes the case for the U.S. to fix this problem by permanently granting all least-developed countries 100% duty-free, quota-free market access and simplifying rules of orgin. Learn More
  • A White House conference on social justice in Latin America this week may signal a shift to U.S. engagement with the region that goes beyond security, free trade, and anti-narcotics efforts. CGD president Nancy Birdsall and Peter Hakim, president of the Inter-American Dialogue, suggest seven ways that the U.S. could more effectively support Latin American efforts to address persistent inequality--starting with a more effective approach on trade and drugs.
    • Nancy Birdsall, President

      An internationally recognized expert on the impact of rich-country policies on poor people in developing countries, Nancy Birdsall is the author, co-author, or editor of more than a dozen books and over 100 articles in scholarly journals and monographs, published in English and Spanish. Her most recent book is Cash on Delivery: A New Approach to Foreign Aid.

    • Michael Clemens, Research Fellow

      Research Fellow Michael Clemens leads CGD’s Migration and Development initiative. This work investigates how rich countries’ regulation of international movement by people from poor countries shapes the lives of the people who move as well as those who do not.

    • William R. Cline, Senior Fellow

      William R. Cline is a senior fellow jointly at the Peter G. Peterson Institute for International Economics and the Center for Global Development. His research focuses on finance, capital flows, trade and development; currently he is investigating the differential impact of global warming on agriculture in rich and developing countries.

    • Ricardo Hausmann, Non-Resident Fellow
      Ricardo Hausmann is Professor of the Practice of Economic Development at Harvard University's Kennedy School of Government. Previously, he served as the first Chief Economist of the Inter-American Development Bank (1994-2000), where he created the Research Department.
    • Ethan Kapstein, Visiting Fellow

      Ethan Kapstein is a visiting fellow at CGD and Paul Dubrule Professor of Sustainable Development at INSEAD. Prior to this, Kapstein was Stassen Professor of International Peace at the Humphrey Institute of Public Affairs and Dept. of Political Science at the University of Minnesota (1996-2003). He has also served as vice president and director of studies at the Council on Foreign Relations. His latest book, The Fate of Young Democracies, co-authored with Nathan Converse, is available through Cambridge University Press.

    • Michael Kremer, Non-Resident Fellow

      Michael Kremer is the Gates Professor of Developing Societies in the department of economics at Harvard University, senior fellow at the Brookings Institution, and non-resident fellow at the Center for Global Development. Kremer’s recent research examines education and health in developing countries, immigration, and globalization.

    • Carol J. Lancaster, Non-Resident Fellow
      Carol Lancaster is Director of the Mortara Center for International Studies at Georgetown University's School of Foreign Service. Before joining the Georgetown faculty in 1996, Professor Lancaster served three years as Deputy Administrator of the U.S. Agency for International Development.
    • Nora Lustig, Non-Resident Fellow

      Lustig is Samuel Z. Stone Professor of Latin American Economics at Tulane University and nonresident fellow at CGD and the Inter-American Dialogue. Previously she was Shapiro Visiting Professor of International Affairs at the Elliott School of International Affairs, George Washington University; Director of the Poverty Group at UNDP; President and Professor of the Department of Economics of the Universidad de las Americas, Puebla, Mexico; Senior Advisor and Chief of the Poverty and Inequality Unit at the Inter-American Development Bank; Senior Fellow at the Brookings Institution; and, Professor at the Center of Economic Studies of the Colegio de Mexico. Her research has focused on poverty and inequality, social policies and social protection with particular emphasis on Latin America.

    • Lant Pritchett, Non-Resident Fellow

      Lant Pritchett is professor of the Practice of International Development and faculty chair of the Masters in Public Policy in International Development program at Harvard's Kennedy School of Government. Prior to returning the Kennedy School, he was lead socio-economist in the social development group of the South Asia region of the World Bank, resident in Delhi, 2004–2007.

    • Steve Radelet, Senior Fellow

      Steve Radelet works on issues related to foreign aid, developing country debt, economic growth, and trade between rich and poor countries. He also leads CGD's Modernizing U.S. Foreign Assistance and MCA Monitor initiatives.

  • Schooling Inequality, Crises, and Financial Liberalization in Latin America - Working Paper 165 - Mar 21, 2009
    This working paper examines the relationship between high inequality and liberalization of the financial sector in Latin America from 1975 to 2000. Using panel data, the authors find that increases in financial liberalization were associated with bank crises and other domestic and external shocks, and that higher schooling inequality reduces the impetus for liberalization brought on by bank crises.
  • Young Democracies in the Balance: Lessons for the International Community - Jan 17, 2008
    Why do new democracies sometimes fail? This CGD brief by visiting fellow Ethan Kapstein explores the underlying reasons for frequent backsliding in the world's fledgling democracies and offers the international community recommendations for helping them stay on track toward political stability. Kapstein argues that the international community should encourage political arrangements in which government leaders are constrained by effective checks and balances, and economic policies that help to ensure that the benefits of growth are widely shared. Learn more
  • Fair Growth: Economic Policies for Latin America's Poor and Middle-Income Majority - Jan 17, 2008
    In an increasingly globalized world, inequality is an issue of rising concern, especially in Latin America, home to many of the world's most unequal societies. This new book, co-published by the Center for Global Development and the Inter-American Dialogue, describes the links between recent growth trends, changing patterns of inequality, and rising cynicism and frustration with the political leadership across the region. The authors, Nancy Birdsall, Augusto de la Torre, and Rachel Menezes, present a dozen economic policy tools to make life fairer for the great majority of people--without sacrificing economic growth. Learn More
  • Girls Count: A Global Investment & Action Agenda - Jan 14, 2008
    The wellbeing of adolescent girls in developing countries shapes global economic and social prosperity -- yet girls' needs often are consigned to the margins of development policies and programs. This new report describes why and how to provide adolescent girls in developing countries a full and equal chance in life. Offering targeted recommendations for national and local governments, donor agencies, civil society, and the private sector, Girls Count provides a compelling starting point for country-specific agendas to recognize and foster girls' potential. Learn More
  • Reflections on the Macro Foundations of the Middle Class in the Developing World - Working Paper 130 - Oct 24, 2007
    Shared growth—growth that helps to build a middle class—is now widely embraced as a central economic goal for developing countries. In this new working paper CGD president Nancy Birdsall reviews how macroeconomic policies shape incentives for inclusive growth, focusing on fiscal discipline; fair revenue and expenditure practices; and a business-friendly exchange rate. Relying heavily on the experience in Latin America and drawing lessons for other parts of the developing world, Birdsall argues that growth that strengthens the middle classes helps poor people, too. Learn More
  • Global Warming and Agriculture: Impact Estimates by Country - Sep 12, 2007
    While the threat of global warming is increasingly accepted, little attention has been paid to the likely impact at the country level, especially in the developing world. In this new book, Bill Cline, a joint senior fellow at CGD and the Peterson Institute for International Economics, provides the first ever estimates of the impact on agriculture by country, with a particular focus on the social and economic implications in China, India, Brazil, and the poor countries of the tropical belt in Africa and Latin America. His study shows that the long-term negative effects on world agriculture will be severe, and that developing countries will suffer first and worst.
  • Helping the Bottom Billion: Is There a Third Way in the Development Debate? - Sep 10, 2007
    Paul Collier's new book, The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It, argues that many developing countries are doing just fine and that the real development challenge is the 58 countries that are economically stagnant and caught in one or more "traps": armed conflict, natural resource dependence, poor governance, and geographic isolation. In a review of the book recently published in Foreign Affairs, CGD research fellow Michael Clemens explores whether or not Collier's proposed solutions constitute a practical middle path between William Easterly's development pessimism and Jeffrey Sach's development boosterism. Learn more
  • Poverty and Inequality in Latin America: How the U.S. Can Really Help - Sep 10, 2007
    For the past decade, U.S. attention to Latin America has focused mainly on promotion of free trade and opposition to narcotics trafficking and security threats. But there are signs that Washington is beginning to recognize the importance of helping the region tackle longstanding poverty and social inequality. Candidates at this weekend's Democratic presidential debate called for a robust foreign policy in Latin America and the Bush administration has recently shown a renewed interest in promoting development and improving Washington's image in the region. This new brief by CGD president Nancy Birdsall and Inter-American Dialogue president Peter Hakim sets forth a practical agenda for how the U.S. can help. Examples: buttress free trade agreements with aid programs that compensate losers; include land redistribution and alternative employment programs in the so-called "war against drugs."
  • Trade Policy for Development: Reforming U.S. Trade Preferences - Sep 4, 2007
    By any measure, the United States is one of the most open economies in the world—importing more than $1 trillion worth of goods duty-free in 2006 alone. Yet poor nations still pay much higher U.S. tariffs than rich countries—an average of 15 percent on a quarter of their imports, compared to 2-5 percent for rich countries. Not only is this unfair, it also undermines American interests by hindering growth in the poorest countries, thereby making them more vulnerable to epidemic diseases, terrorists, and transnational criminal organizations. In this new CGD Brief, senior fellow Kimberly Ann Elliott makes the case for the U.S. to fix this problem by permanently granting all least-developed countries 100% duty-free, quota-free market access and simplifying rules of orgin. Learn More
  • A White House Focus on Social Justice in Latin America? - Jul 9, 2007
    A White House conference on social justice in Latin America this week may signal a shift to U.S. engagement with the region that goes beyond security, free trade, and anti-narcotics efforts. CGD president Nancy Birdsall and Peter Hakim, president of the Inter-American Dialogue, suggest seven ways that the U.S. could more effectively support Latin American efforts to address persistent inequality--starting with a more effective approach on trade and drugs.
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