Abstract

(Position at the time the conference was held)

Participants

(Position at the time the conference was held)

Irma Adelman

Professor, University of California at Berkeley

Alberto Alesina

Professor, Harvard University

Eduardo Aninat

Minister of Finance, Chile

Anthony Atkinson

Warden, Nuffield College, Oxford University

Nicholas Barr

Senior Lecturer, London School of Economics

Nancy Birdsall

Executive Vice President, Inter-American Development Bank (later Senior Associate and Director of the Economics Program, Carnegie Endowment for International Peace)

Aníbal Cavaco Silva

Professor, Nova University of Lisbon and Portuguese Catholic University, Consultant to the Bank of Portugal, and former Prime Minister of Portugal

Chia Siow Yue

Professor and Director, Institute of Southeast Asian Studies, Singapore

Susan M. Collins

Associate Professor, Georgetown University

Ma. Nieves R. Confesor

Presidential Advisor for Human Resource Development and International Labor Affairs, Philippines

Mikhail Dmitriev

First Deputy Minister of Labor and Social Development, Russia

Stanley Fischer

First Deputy Managing Director, IMF

Guo Shuqing

Secretary General, State Commission for Restructuring the Economic System, People’s Republic of China

Enrique V. Iglesias

President, Inter-American Development Bank

Ravi Kanbur

Professor, Cornell University

Grzegorz W. Kolodko

Professor, Warsaw School of Economics, and former Deputy Prime Minister and Finance Minister of Poland

Santiago Levy

Undersecretary of Expenditures, Mexico

Karin Lissakers

Executive Director, United States, IMF

Monsignor Diarmuid Martin

Secretary, Pontifical Council for Justice and Peace, Vatican City

Jean-Claude Milleron

Executive Director, France, IMF

Alicia H. Munnell

Professor, Boston College

The Most Reverend Njongonkulu

Winston Ndungane

Archbishop of Cape Town and Metropolitan Church of the Province of Southern Africa

Alassane D. Ouattara

Deputy Managing Directory, IMF

Guillermo Perry

Chief Economist for Latin America and the Caribbean, World Bank

Maria Ramos

Director-General, Department of Finance, South Africa

Monsignor Oscar Andrés Rodríguez

Maradiaga

President, Latin American Council of Bishops, and Archbishop of Tegucigalpa, Honduras

Amartya Sen

Master, Trinity College, Cambridge, and Professor of Economics, Harvard University; Nobel Laureate, 1998

Arjun Sengupta

Professor, School of International Studies, Jawaharlal Nehru University

John Sewell

President, Overseas Development Council

David Smith

Director, Public Policy Department, American Federation of Labor and Congress of Industrial Organizations

Lawrence H. Summers

Deputy Secretary, Department of Treasury, United States

Vito Tanzi

Director, Fiscal Affairs Department, IMF

Index

Boldface page references refer to tables

  • Aaron, Henry, 64

  • Adelman, Irma, 3, 73, 81–84

  • AFL-CIO. See American Federation of Labor-Congress of Industrial Organizations

  • Africa. See also South Africa; Sub-Saharan Africa; Uganda

    • average per capita income, 255

    • inefficient tax systems, 217

    • post-structural-adjustment period, 83

    • unequal ownership of land, 20–21

  • African-Americans

    • condition of, 52

    • life expectancy, 38–39

    • mobility for male workers, 54

  • Akerlof, George, 69, 70

  • Albania, 181

  • Alesina, Alberto, 7, 9, 216–34, 261, 262–65, 276

  • Alliance for Progress, 258

  • Alonso-Terme, Rosa, 223

  • American Federation of Labor-Congress of Industrial Organizations, 271

  • Angell, Alan, 222

  • Aninat, Eduardo, 4, 109–49, 261–62, 267, 275–77

  • Apprenticeships, 212

  • Argentina

    • income inequality increase, 65

    • market flexibility, 252

    • Trabajar program, 252

  • Armenia, 161

  • Asia

    • abundance of unskilled labor, 22

    • financial crisis, vii, 41–42, 92

  • Asian Development Bank, programs in Thailand, 15–16

  • “Asian Tigers,” 100

  • Atkinson, Anthony, 3, 63–80, 151, 262, 268, 269, 274

  • Baltics, the, 168

  • Bangladesh, 22

  • Barr, Nicholas, 2, 44–47

  • Bauer, Andreas, 109–49

  • Belarus

    • Gini coefficient, 157

    • subsidies, 162

  • Beyer, H., 113, 134

  • Birdsall, Nancy, 3–4, 85–91

  • Black markets, 163–64, 182, 217

  • Blair, Tony, 213

  • Botswana, 247

  • Bourguignon, François, 71

  • Bowley’s Law, 70

  • Brandolini, Andrea, 274

  • Brazil

    • income inequality increase, 65

    • land reform, 252

    • poverty rate, 251

    • spending for each university student, 277

  • Brown, Sir Henry Phelps, 68

  • Bruno, Michael, 65

  • Bulgaria

    • Gini coefficient, 157, 158

    • subsidies and, 162

  • Burnside, Craig, 228

  • Calderón, César, 249–50

  • Camdessus, Michel, v-viii, 271

  • Canada, 71

    • Gini coefficient, 65

    • ratio of earnings, 65

  • Capital income

    • importance, 70–73

    • leverage, 100

  • Cavaco Silva, Aníbal, 6–7, 205–15, 261

  • Centrally planned economies. See also specific countries

    • free market economies differences, 151–53

    • income distribution, 152

    • “shortageflation,” 153

    • shortages, 152–53

    • taxation, 152

    • transition to market economies, 150–85

  • Chenery, Hollis, 207

  • Child allowances, 190

  • Chile, 4–6, 109–49

    • CASEN survey, 127–28

    • cash transfers, 128–29

    • Concertación coalition, 109, 112

    • copper and Copper Stabilization Fund, 119, 120

    • debt repayment, 262

    • distribution of income, 113, 255

    • economy, growth of, 118

    • education, 110, 126, 128, 131, 132, 135–37, 144–47

    • efficiency indicators by school type, 134

    • equity and economic policy, 111–12

    • equity enhancement through:

      • education policy, 133–37, 144–45;

      • fiscal revenue policies, 122–25;

      • public expenditure, 144; social

      • expenditure, 125–26

    • Gini coefficient, 112

    • health care and spending, 110, 131, 277

    • Individual Savings Account for Unemployment, 141

    • international comparison of inequality, 114

    • macroeconomic indicators, 116

    • macroeconomic management, 109–10, 115–22, 144

    • minimum wage policy, 110, 138–40

    • National Test of Educational Achievement (SIMCE), 133, 145–47

    • pensions, 125

    • policy instruments for equity, 109, 115–42

    • political economy of equity-enhancing policies, 142–44

    • poverty: and income distribution, 112–15; and lack of political power, 142; reduction of, 109, 114

    • PROTRAC system, 110, 141

    • Prueba de Aptitud, 136

    • regulatory policy, 138–42

    • school enrollment by income group, 135

    • shortcomings of worker protection system, 140–41

    • social expenditure, 110, 126–33

    • social reform strategies, 142–44

    • Subsidio de Cesantía, 140

    • taxes and taxation, 120, 122–25

    • worker mobility, 141

  • Chia Siow Yue, 7, 235–38

  • China, People’s Republic of

    • abundance of unskilled labor, 22

    • compared with India, 29–30

    • equity and economic development, 58–59

    • Gini coefficient, 29

    • income distribution, 57–59

    • multidimensional character of equity, 2

    • reduction in poverty, 100

  • Chong, Alberto, 249–50

  • Chu, Ke-young, v, 231

  • Clinton, Bill, 104, 273

  • Collins, Susan M., 4, 92–95

  • Colombia, 252

  • Contreras, D., 114, 134

  • Copper, in Chile’s economy, 119

  • Copper Stabilization Fund, 120

  • Costa Rica

    • income distribution, 255

    • income inequality increase, 65

    • wage differentials in, 88

  • Cowan, Kevin, 109–49

  • Croatia, 161

  • Czech Republic

    • Gini coefficient, 157

    • privatization, 154–55, 166

  • Davoodi, Hamid, 223

  • De Gregorio, José, 121

  • Deininger, Klaus, 100

  • Denmark, Gini coefficient, 258

  • Developing countries. See also specific countries

    • “cold turkey” approach to fiscal reforms, 230

    • debt cancellation and repayment, 8, 244, 245

    • debt-led growth, 82

    • education in, 222

    • globalization and income distribution, 21–22

    • good governance for, 246

    • government expenditure composition, 7

    • growth and income inequality, 100

    • inefficient tax systems, 217

    • institutional reform and inequality, 250

    • market-based approaches to growth, 99–100

    • nonlabor income, 71

    • poverty magnitude, 243–44

    • reforming and redirecting spending, 228

    • regional dimension of inequality, 16

    • small governments in, 221, 228

    • sources of borrowing, 82–83

    • spending composition, efficiency, and targeting, 264

    • supply of unskilled labor, 21

    • tax evasion, 225, 229

    • trade liberalization in, 24

    • U.S. increased trade with, 102

  • Disabled persons, 175, 213, 270, 276

  • Discrimination, awareness of, 19–20

  • Dmitriev, Mikhail, 5, 189–91

  • Dollar, David, 228

  • Drug addicts, 213

  • East Asia. See also specific countries

    • economic stabilization programs, 272

    • financial crisis, vii, 41–42, 92

    • social roots of economic success, 42, 50–51

    • social safety nets, 235–36

    • wage gap between skilled and unskilled workers, 256

  • Eastern Europe. See also specific countries

    • GDP, 168

    • Gini coefficients, 151, 196

    • growth rate, 154

    • social programs, 231

  • Economic Report of the President (U.S.), 53

  • Economics of Labor, The, 68

  • Economist, The, 53

  • Education

    • Brazil, 277

    • Chile, 110, 126, 128, 131, 132, 133–37, 144–45

    • developing countries, 222

    • human resources and, 212

    • investing in, 101

    • Latin America, 250–51, 256

    • low-quality education, 145–47

    • outlays for, vii, 23–24, 190–91, 242

    • public support, 222

    • teacher training, 258

    • unequal access, 88

  • “Eliminating World Poverty: A Challenge for the 21st Century” (U.K.), 244

  • Engel, E., 121, 125

  • Equity, 19–20, 24

    • banking crises and, 6

    • concentration on income inequality, 30

    • dimensions of, 93

    • domain of, 31–33

    • equity-enhancing measures redesign, 6–8

    • globalization and, 21–22, 99–105

    • as goal of economic policy, 19–26

    • implications for IMF, v-viii, 25–26, 261–77

    • implications for policy, 46–47

    • inequality, growth of, 20–21

    • Latin America, 254–58

    • measured in terms of income/consumption or wealth, 44–45

    • media sensationalism, 268

    • multidimensional character of, 2, 9

    • multivariate characterization of, 45–46

    • nonincome aspects, 2

    • obstacles to, 25

    • policy responses, 17–18, 22–25, 246–47

    • political economy and the equity-policy agenda, 205–14

  • ESAF. See Extended Structural Adjustment Facility

  • Estonia, Gini coefficient, 157

  • Ethnic minorities, programs targeting, 213

  • Europe. See also specific countries

    • income inequality, 2

    • joblessness in, 39

  • European Monetary Union

    • convergence criteria, 230

    • unemployment and, 40–41

  • European Union, 206

    • export markets and, 272

    • income distribution, 206

    • job creation by small firms, 211

    • labor flexibility, 210–11

    • Poland’s negotiations for accession to, 170

    • poverty rate, 251

    • social partnership institutions, 211

    • tax competition, 209

    • transition economies and, 154, 160–61

    • unemployment, 206, 251–52

    • welfare programs, 7

  • Extended Structural Adjustment Facility, vii-viii, 25

  • Finland, Gini coefficient, 151

  • Fischer, Stanley, 13–18, 268, 271

  • Fiszbein, Ariel, 65

  • Foreign aid, 73, 217, 228

  • France, 71, 270

    • Gini coefficient, 65, 82

    • unemployment, 40

  • Free market economies. See also Transition economies; specific countries

    • centrally planned economies differences, 151–53

    • transition to, 16, 150–85

  • Free trade agreements, 85

  • Frei, Eduardo, 111

  • Fuente, Angel de la, 219

  • Galetovic, A., 121, 125

  • Gavin, Michael, 228

  • Georgia, 180

  • Germany, 71

    • Gini coefficient, 64, 151

    • unemployment, 40

  • Gini coefficients

    • Belarus, 157

    • Bulgaria, 157, 158

    • Canada, 65

    • Chile, 112

    • China, People’s Republic of, 29

    • corruption link, 223

    • Czech Republic, 157

    • Denmark, 258

    • Eastern Europe, 151, 196

    • Estonia, 157

    • Finland, 151

    • France, 65, 82

    • Germany, 64, 151

    • Hungary, 157

    • India, 29

    • Italy, 65

    • Japan, 64

    • Latin America, 20

    • Latvia, 157

    • limits of, 268

    • Lithuania, 157

    • magnitude of year-to-year changes, 82

    • Moldova, 157

    • Netherlands, 151

    • Norway, 151

    • Poland, 157, 173, 184

    • Romania, 157

    • Russia, 157, 158, 172

    • Slovak Republic, 157

    • Slovenia, 157

    • Sweden, 151

    • Ukraine, 157, 158

    • United Kingdom, 64

    • United States, 64

    • Uruguay, 258

  • Global Competitiveness Report 1998, 250

  • Globalization

    • benefits, 262

    • governments and, 273

    • impact on income distribution, 16–17

    • incompleteness of, 81

    • link with labor, product, and capital markets, 21

    • long-term equity and, 93–94

    • OECD countries’ experience, 3–4, 63–77

    • power of governments, 103–105

    • threat to less-skilled, 100

    • “union wage premium” and, 22

  • Governments, v-viii, 275

    • “blocking coalition” of public sector unions and retirees, 225

    • correlations between income, growth, and Government Efficiency, (1960–92), 223

    • corruption, cost of, 223

    • globalization and, 273

    • high-visibility programs, 261

    • impotence in face of economic forces, 73

    • outlays, changes in, 218–19

    • power and leverage of, 100, 103–105

    • public spending “hijacked” by powerful groups, 276–77

    • size of, 9, 216–31, 245, 263; vs. quality, 264, 269

    • taxes and taxation, 216, 224, 262

    • U-curve relating size to growth, 263

    • welfare state expansion, 217

  • Graham, Carol, 222, 231

  • Guo Shuqing, 3, 57–59

  • Gupta, Sanjeev, 223, 231

  • Health care

    • Chile, 110, 125–28, 131, 277

    • cost and availability, 39

    • developing countries, 222

    • Latin America, 258

    • outlays for, vii, 23–24, 190–91

  • Heckscher-Ohlin theorem, 82

  • Hicks, Sir John, 68, 69

  • Hirschman, Albert, 75

  • Homeless people, 182, 206, 213

  • Household savings, in transition economies, 163–64

  • Housing, in Chile, 125, 127

  • Human capital, v, vi; employment and, 209–12

  • Hungary

    • Gini coefficient, 157

    • household income distribution, 152

    • pension reforms, 191

    • privatization, 166

    • shadow economy, 161

    • wage dispersion, 152

    • welfare spending, 190

  • IDB. See Inter-American Development Bank

  • Iglesias, Enrique, 8, 254–58

  • Illiteracy

    • China, 29

    • India, 29

    • sub-Saharan Africa, 35, 36, 37

  • ILO. See International Labor Organization

  • IMF. See International Monetary Fund

  • Income distribution, vi, 65. See also Gini coefficients

    • Chile, 111–12, 127–29, 255

    • China, 57–59

    • Costa Rica, 255

    • health and education outlays, 23–24

    • improvement in efficiency of public agencies, 213

    • India, 29

    • inflation and, 24

    • Latin America, 254–58

    • market policies to influence, 24

    • mobility and, 54–55

    • overcoming political and administrative constraints, 213–14

    • positive effect of economic growth, 207–208

    • social norms and, 274–75

    • taxation and, 23

    • trade liberalization and, 24

    • in transition to market economies, 150–85

    • Uruguay, 255, 258

  • Indexation, in transition economies, 164, 176

  • India

    • abundance of unskilled labor, 22

    • agricultural growth, 201

    • compared with: China, 29–30; sub-Saharan Africa, 33–38

    • development program aimed at macrostability, 200

    • Gini coefficient, 29

    • illiteracy, 35, 36, 37

    • infant mortality, 34–35, 37

    • life expectancy, 34–35

    • living conditions in, 34

    • multidimensional character of equity, 2

    • nourishment, 36–37, 38

    • poverty ratio, 200

    • unemployment, 201

    • welfare spending, 222

  • Indonesia

    • abundance of unskilled labor, 22

    • health programs, 222

    • IMF-supported and World Bank programs, 15, 266

    • mistargeting of public consumption and transfers, 221–23

    • social safety nets, 268

    • welfare spending, 222

  • Industrialized countries. See also specific countries

    • government expenditure, 257

    • widened wage differentials, 17

    • working people in, 273

  • Infant mortality

    • China, 29

    • India, 29, 35

    • sub-Saharan Africa, 35

  • Inflation

    • Chile and, 117, 121

    • income distribution and, 24

    • Latin America, 255

    • low unemployment and, 41

    • “shortageflation,” 153

    • subsidies and, 162

    • in transition economies, 163, 175

  • Inter-American Development Bank, 258

  • International Economics (Krugman and Obstfeld), 63

  • International Labor Organization, vii, 14, 271

  • International Monetary Fund, v-viii, 104, 227, 229, 265–66

    • austerity and, 272

    • conferences (1995 and 1998), v, vii, 14–18

    • debt relief, 266

    • emphasis on balanced budgets, 227

    • equity and, 25–26, 261–77

    • increased emphasis on needs of the poor, 101

    • insistence on deficit reduction, 230

    • investment in human capital, 194

    • lessons for, 8–9, 261–77

    • military spending and, 101

    • reputation for promoting efficiency, 28

    • roundtable discussion, 261–77

  • International trade, 65, 81, 85

  • Ireland

    • budget deficit reduction, 227–28

    • debt-to-GDP ratio, 228

    • unemployment, 49

  • Italy, 71

    • Gini coefficient, 65

    • Messadria, 274

    • pensions, 224

    • positional rents, 274

    • public-wage-to-GDP ratio, 230

    • ratio of earnings, 65

    • reduction in government size, 230

    • tax-to-GDP ratio, 230

    • transfer-to-GDP ratio, 230

    • unemployment, 40

  • Japan, 71

    • employment for life, 274

    • Gini coefficient, 64

    • poverty reduction through rapid growth, 100

  • Johnson, Simon, 249

  • Justice, domain of, 32–33

  • Kaldor, Nicholas, 70

  • Kanbur, Ravi, 7, 239–42, 264–65

  • Kaufmann, Daniel, 249

  • Kazakhstan, 191

  • Kennedy, John F., 53, 73

  • Keynes, J.M., 70

  • Kolodko, Grzegorz, 5, 150–88, 261, 265, 268, 271, 276

  • Korea

    • Adelman and Robinson study, 73

    • employment for life, 274

    • IMF and, 266

    • unemployment insurance, 16

  • Krugman, Paul, 63

  • Kuznets, Simon, 100

  • Labor. See also Skilled labor; Unskilled labor

    • benefits of loyal workforce, 103

    • industrialized countries, 273

    • labor market flexibility, 210–11, 252, 267

    • privatization in transition economies, 164–66

    • tax burden, 209

    • training programs, 212

    • typical OECD country worker, 73

  • Labor unions

    • “blocking coalition,” with retirees, 225

    • public employee members, 224

    • stabilization programs and, 271

    • supply and demand and, 68

  • Landerretche, Oscar, 121

  • Land reform, in Latin America, 252, 258

  • La Porta, F., 217, 228

  • Latin America, 16, 221–23. See also specific countries

    • debt crisis (1980s), 255

    • “destructive inequality,” 86, 90

    • dropout rate, 250, 256

    • economic reforms, 255

    • education, 88, 250–51, 256

    • equity issues, 254–58

    • equity-promoting policies, 8

    • fiscal adjustments, 228

    • Gini coefficient, 20

    • health care, 258

    • human resource development, 257

    • income, vi, 20, 193, 255

    • inflation, 255

    • land ownership, 20–21, 252, 258

    • market reforms, 101

    • post-structural-adjustment period, 83

    • poverty and income inequality, 217, 251, 257–58

    • public expenditure, 221, 257

    • skilled and unskilled worker wages, 22, 86–88

    • social services and program delivery, 231, 258

    • social tolerance for inequality, 86

    • solidarity in the Roman Catholic Church, 96–98

    • sustainable growth, 22

    • taxes and taxation, 8, 217

    • unemployment rate, 251–52

  • Latvia

    • Gini coefficient, 157

    • shadow economy, 161

  • Levy, Santiago, 6, 192–95, 273

  • Life expectancy

    • India, 34

    • South Asia, 2

    • transition economies, 182

    • U.S. racial variations, 38–39

  • Lissakers, Karin, 9, 265–67

  • Lithuania, Gini coefficient, 157

  • Loayza, Norman, 225, 249

  • Low income vs. low standard of living, 76–77

  • Macroeconomic stability, v, vi; effects on poor, 13–14

  • Malaysia, 222

  • Mandela, Nelson, 198

  • Marcel, Mario, 109n

  • Marshall Plan, 104

  • Martin, Monsignor Diarmuid, 2, 49–51, 270

  • Mexico

    • banking crisis, 192–93

    • economy reform, 192

    • income distribution, 193

    • market flexibility, 252

    • social spending, 194

    • trade liberalization, 194

  • Milanovic, Branko, 157

  • Mill, John Stuart, 30

  • Milleron, Jean-Claude, 9, 267–70, 272

  • Minimum wage

    • Chile, 110, 138–40

    • policies, 66–67, 208

  • Mirrlees, James, 239

  • Moldova

    • GDP, 180

    • Gini coefficient, 157

  • Morrisson, Christian, 71

  • Munnell, Alicia, 2, 52–56, 268

  • National Poverty Hearings (South Africa), 247

  • Ndungane, Most Reverend Njongonkulu Winston, 7, 243–48, 266

  • Nead, Kimberly, 222

  • Netherlands, the, Gini coefficient, 151

  • Norway, Gini coefficient, 151

  • Obstfeld, Maurice, 63

  • OECD (Organization for Economic Cooperation and Development) countries

    • distribution of resources, 239–40

    • fiscal adjustment and reforms, 224–25, 227, 230

    • globalization experience, 3–4, 63–77

    • government efficiency and size, 217, 219–20, 263

    • income inequality, 7

    • lessons from developing or transitional economies, 92

    • low income vs. low standard of living, 76–77

    • macroeconomic stabilization, 81

    • pensions and unemployment benefits, 229

    • social transfers, 75

    • taxes and taxation, 219, 224, 226

    • unemployment, 75

    • welfare systems, 7, 74, 225, 264–65

  • OECD Jobs Strategy, 210

  • OECD Jobs Study, 210–11

  • Ouattara, Alassane, 8–9, 261–62, 269

  • Pakistan

    • abundance of unskilled labor, 22

    • welfare spending, 222

  • Palley, Thomas, 272

  • Panama, 65

  • Payroll taxes, 190

  • Pensions. See also Retirees

    • Chile, 125

    • for disabled persons, 175

    • generosity of, 20

    • Hungary, 191

    • Italy, 224

    • Kazakhstan, 191

    • linked to the wage system, 152

    • OECD countries, 229

    • pay-as-you-go systems, 127, 224

    • programs targeting poor pensioners, 213

    • savings eroded by inflation, 181

    • welfare pensions, 127

  • Perotti, Roberto, 208, 219–20, 224, 227, 228

  • Perry, Guillermo, 8, 249–53

  • Peru, 222

  • Petty, William, 30

  • Philippines, 221–23

  • Phillips curve, 73

  • Poland

    • agricultural sector, 182

    • austerity, 272

    • capital formation policy, 177

    • contraction period, 168

    • gap between expectations and achievements, 155

    • GDP, 170, 180

    • Gini coefficient, 157, 173, 184

    • household income distribution, 152

    • inflation, 170

    • OECD membership, 170

    • Package 2000, 177–78

    • personal taxation system, 178–79

    • popiwek, 174–75

    • privatization, 166

    • savings, 177

    • shadow economy, 161

    • standard of living, 171–72

    • stock exchange index, 177

    • Strategy for Poland, 170, 173, 174

    • subsidies, 152, 162

    • transition strategy, 150

    • unemployment, 170, 183

    • wage dispersion, 152

    • welfare spending, 190

  • Political conflict, equity and reduction of, 20

  • Political economy and the equity-policy agenda, 205–15

  • Porter, Michael E., 250

  • Portugal, 274

  • Poterba, James, 71

  • Poverty

    • black markets, 182

    • Brazil, 251

    • Chile, 109, 114

    • communist countries, 189

    • concentration in communities, 94

    • crime rates and, 182

    • European Union, 251

    • high growth and, 266

    • homeless people, 182

    • income-earning capacity, 212

    • India, 200

    • Latin America, 251

    • life expectancy and, 182

    • persistence of, 207

    • policies promoting equity and, v-viii, 19

    • tolerance of inequality, 235

    • trade-offs between income redistribution and efficiency, 17

    • transition economies, 179–83

  • Pradhan, Sanjay Kumar, 222

  • Privatization

    • Russia, 172

    • South Africa, 198

    • transition economies, 154–56, 164–66, 196

    • unemployment and, 20

    • workers striking for, 166

  • Psacharopoulos, George, 65

  • Raddatz, C., 121, 125

  • Rainwater, Lee, 151

  • Ramos, Maria, 6, 196–99, 273

  • “Range theory” of wage differentials, 68, 69

  • Ravallion, Martin, 65

  • Rawlsian vs. utilitarian welfare, 268

  • Retirees

    • “blocking coalition” of public sector unions and, 225

    • industrialized countries, 224

  • Robinson, Sherman, 73

  • Rodrik, Dani, 253

  • Rodríguez Maradiaga, Monsignor Oscar Andrés, 4, 96–98

  • Roman Catholic Church, solidarity in, 96–98

  • Romania

    • Gini coefficient, 157

    • shadow economy, 161

    • subsidies, 162

  • Rossi, Nicola, 274

  • Roundtable discussion

    • Alesina, Alberto, 262–65

    • Lissakers, Karin, 265–67

    • Milleron, Jean-Claude, 267–70

    • Ouattara, Alassane, 261–62

    • Smith, David, 271–74

    • Tanzi, Vito, 274–77

  • Russia

    • access to allowances and services, 190, 191

    • corruption, 172

    • gap between expectations and achievements, 155

    • GDP, 168

    • Gini coefficient, 157, 158, 172

    • life expectancy, 182

    • MMM Investment schemes, 181

    • organized crime, 172

    • pension and salary payment, 182

    • privatization, 154–55, 172

    • public opinion on poverty and wealth, 172

    • social spending, 189

    • transfers, 5

    • transportation subsidies, 190

  • “Second-generation” structural reforms, vi, 15

  • Sen, Amartya, v, 28–43, 76, 261, 267

  • Senegal, 222

  • Sengupta, Arjun, 6, 200–201

  • Shadow economies in transition economies, 159–61

  • Shleifer, Andrei, 249

  • “Shortageflation,” 153

  • Singapore, 7, 237–38

  • Skilled labor

    • “skill premium,” 93

    • wage gap with unskilled labor, 86–88, 256–57

  • Slovak Republic, Gini coefficient, 157

  • Slovenia

    • Gini coefficient, 157

    • shadow economy, 161

  • Smeeding, Timothy M., 151

  • Smith, Adam, 30

  • Smith, David, 9, 271–74

  • Social exclusion linked to unemployment, 210

  • Social justice, concerns about IMF-supported programs, 13

  • Social safety nets

    • East Asia, 235–36

    • in IMF-supported programs, 14, 15, 229, 231, 268

    • importance, vii, 7

    • “middle class capture,” 231

  • Social security, 75; contribution to a fairer society, 209

  • Social values, equity and, 19–20

  • Solidarity

    • concept of, 269

    • in Roman Catholic Church, 96–98

  • Solow, Robert, 69, 70

  • South Africa. See also Sub-Saharan Africa; Uganda

    • budget and fiscal reforms, 197–98

    • GDP, 197

    • National Poverty Hearings, 247

    • as new democracy, 196–97

    • policy sequencing, 198–99

    • privatization, 198

    • reform process, 197

    • tax policies, 198

  • South Asia, 2. See also specific countries

  • Soviet Union, former. See also specific states

    • GDP, 168

    • income distribution, 158

    • life expectancy, 182

    • market reforms, 101

    • regional tensions, 156

  • Squire, Lyn, 65, 100

  • Sri Lanka, 222

  • Statutory wage determination, supply and demand and, 68

  • Stolper-Samuelson theorem, 82

  • Sub-Saharan Africa. See also South Africa; Uganda

    • debt repayment, 244

    • health care expansion, 38

    • high levels of inequality, 16

    • illiteracy, 35, 36, 37

    • poverty and income inequality, vi, 217

    • poverty compared with India, 33–38

    • public consumption and transfers, 221–23

    • undernourishment, 36–37

    • warfare, 37

  • Summers, Lawrence, 4–6, 99–105, 271

  • Supply and demand, of labor, 67–70

  • Sweden, Gini coefficient, 151

  • Sweeney, John, 273

  • Tajikistan, 180

  • Tanzi, Vito, v, 9, 208, 220, 223, 229, 274–77

  • Tavares, José, 224, 227

  • Taxes and taxation, vi, 208–209

    • centrally planned economies and, 152

    • Chile, 120–25

    • corporate, 209

    • developing countries, 217, 225

    • European Union tax competition, 209

    • evasion and avoidance, 8, 160–61, 217, 225, 226, 229

    • improving collection, 230–31

    • income and payroll, 190

    • labor and, 209

    • marginal, on capital income, 276

    • migration and, 75–76

    • objectives other than equity, 208–209

    • OECD countries, 219–20, 223

    • personal, 178

    • Poland, 174–75, 178

    • politics and, 208–209

    • pressures to reduce, 262

    • redistributive policies, 23

    • reemployment and, 265

    • South Africa, 198

    • supporting nonworkers, 225

    • tax-to-GDP ratio, 23

    • transition economies, 167

  • Technology, unskilled labor and, 66–67, 102

  • Thailand

    • IMF and, 266

    • temporary public works programs, 15–16

  • Transition economies, 5, 16, 150–88. See also specific countries

    • black markets, 163–64

    • capital formation policy, 176, 177

    • capital gains, 177

    • entrepreneurial class, 184

    • expectations for income patterns and wealth distribution, 153–56

    • growth and, 22–23

    • income inequality, vi, 151, 157–61;

      • changes in, during transition, 158;

      • worsening of, 65

    • indexation, 164, 176

    • inflation, 175

    • nouveaux riches vs. nouveaux pauvres, 179–84

    • pensions and benefits for disabled persons, 175

    • policy issues, 167–79

    • poverty and GDP during transition (1987–94), 181

    • poverty in, 179–84

    • privatization, 21, 164–66, 196

    • recession and growth (1990–97), 169

    • regional crises, 180

    • savings, 163–64, 176–77

    • shadow economies, 159–61

    • subsidies, 162

    • taxes and taxation, 160–61, 167, 190

    • unemployment, 181

    • wealth accumulation, 168

    • welfare system, 189–90

  • Transportation subsidies, 190

  • Truman, Harry, 75

  • Uganda, 247

  • Ukraine

    • contraction period, 168

    • Gini coefficient, 157, 158

    • shadow economy, 161

    • subsidies, 162

  • Undernourishment, in India, 36

  • Unemployment, 70

    • Chile, 117, 140–42

    • employment promotion, 211

    • Europe, 102, 210

    • European Union, 251–52

    • “fair” vs. market-clearing wage, 70

    • impact on individuals, 55

    • India, 201

    • involuntary, 69–70

    • Ireland, 49

    • Latin America, 251–52

    • “natural rate” of, 73

    • negative effects, 40

    • OECD countries, 75, 229

    • Poland, 170–71, 183

    • social exclusion and, 210

    • transition economies, 181

    • the unemployable, 213

    • United States, 181

  • Unemployment benefits

    • Korea, 16

    • returning to work and, 75

    • Western Europe, 39

  • United Kingdom, 71

    • Beveridge plan, 240–41

    • dismantling of social protection, 74

    • dispersion of male earnings, 68

    • Gini coefficient, 64

    • poverty, 65

    • ratio of earnings, 65

    • tax on capital income, 276

    • unskilled labor wages, 66

  • United Nations Development Programme, vii, 14; Human Poverty Index, 114

  • United States, 93, 104, 105

    • deaths from violence, 39

    • disability policy, 270, 276

    • earned and nonearned incomes, 93

    • export markets, 272

    • Gini coefficient, 64

    • health care, 39

    • imports from low-wage countries, 102

    • income inequality, 2, 40, 93

    • labor’s share of capital income, 70–71

    • market flexibility, 24

    • mobility and income distribution, 54–55

    • racial variations in life expectancy, 38–39

    • ratio of earnings, 65

    • tax on capital income, 276

    • unemployment, 40, 181

    • wages: inequality, 102, 103; subsidies, 24; of unskilled labor, 66

    • “welfare migration,” 74

  • Unskilled labor

    • developing countries, 21–22

    • globalization as a threat to, 100

    • shift in demand for, 65–67

    • technology changes and, 66–67, 102

    • wage gap between skilled and, 256;

    • in Latin America, 86–88, 256–57

  • Uruguay

    • Gini coefficient, 258

    • income distribution, 255, 258

    • income inequality increase, 65

  • U.S. Federal Reserve System, 41

  • U.S. GI Bill of Rights, 104

  • van de Walle, Dominique, 222

  • Venezuela, 222

  • Vietnam, 100

  • Violence, deaths from, 39

  • Vocational training, 212

  • Wages

    • “fair” vs. market-clearing, 70

    • skilled and unskilled worker differentials, 86–88, 256–57

  • Warfare, India compared with sub-Saharan Africa, 37

  • Washington Consensus, 101

  • Wealth accumulation. See also Poverty

    • transition economies, 168, 183–84

  • Welfare systems

    • European Union, 7

    • OECD countries, 7, 74, 225

    • for poverty-stricken and unemployable, 213

    • Rawlsian vs. utilitarian, 268

    • size of government and, 217

    • transition economies, 189–90

    • “welfare migration” between U.S. states, 74

    • welfare pensions, 127

  • Western Europe. See also specific countries

    • growth rate, 154

    • unemployment, 39, 40

  • West Germany. See Germany

  • Williamson, John, 101

  • Women, antifemale bias in child mortality in India, 37

  • World Bank, vii, 14, 229

    • education study, 134

    • governance issues, 104

    • growth: and improved equity, 207; in transition economies, 170

    • investment criteria, 270

    • Jubilee 2000 Coalition report, 244

    • land reform, 252

    • recent work in Asia related to equity, 265–66

    • social lending, 101

    • social safety nets, 268

    • study of income distribution in Chile, 112

    • study of poverty reduction, 114

    • Trabajar program in Argentina, 252

  • World Trade Organization, 104, 273

  • Yugoslavia, former

    • household income distribution, 152

    • regional tensions, 156

    • wage dispersion, 152

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