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BORIS BERNSTEIN and JAMES BOUGHTON

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

PREM C. GARG and SAMIR EL-KHOURI

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

Sebastian Edwards, Lance Taylor, Joan M. Nelson, J. J. Polak, Michael Bruno,, Guido de Telia,, Rudiger Dornbush,, Mr. Stanley Fischer, Brian Stuart, Mr. Elhanan Helpman, Paul R. Krugman, Ms. Naheed Kirmani, Ail M. El-Agraa, Ulrich Lächler, Francois Leroux, and Mr. Michel Dessart

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

International Monetary Fund. External Relations Dept.

On February 8, IMF Managing Director Michel Camdessus noted the death of Manuel Guitian on February 7 in Madrid at the age of 61. The full text of News Brief No. 00/9 is available on the IMF’s website (www.imf.org).

International Monetary Fund. Fiscal Affairs Dept.

Abstract

Depending on whether income inequality is assessed across or within countries, the picture that emerges can be starkly different. If inequality is examined at the global level, that is, abstracting from national boundaries, inequality has declined substantially over the past three decades. This decline reflects income convergence between developing and advanced economies aided by globalization and technological advancement. Income inequality within national boundaries, however, presents a mixed picture: some countries have experienced a reduction in inequality while others, particularly advanced economies, have seen a significant uptick in inequality. Although increased global integration and technological progress are widely recognized as having generated widespread economic growth and falling global inequality and poverty, the rising inequality in advanced economies, in conjunction with job insecurity and stagnating real incomes for a segment of the population, has led to growing public backlash against globalization.

International Monetary Fund. External Relations Dept.

On November 21, the seven-party alliance government of Nepal and the Communist Party of Nepal (Maoist) (CPN-M) signed a comprehensive peace accord that marked the official end of an 11-year armed insurgency and provided for arms management and an interim government and legislature in which the CPN-M would participate in the lead-up to constituent assembly elections in June 2007.

RATNA SAHAY and CARLOS A. VÉGH

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

Jeffrey A. Katz

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.