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