Inequality in Emerging Countries

Abstract

In the last three decades, emerging countries have experienced a significant rise in growth, and thus in their real income per capita. After almost two centuries of ‘great divergence’ (Pomeranz, 2000; Pritchett, 1997) characterized by growth rates significantly higher in the North (developed countries) than in the South (developing countries), this surge in growth within a majority of less developed countries could open a new era of ‘great convergence’ on the World stage. Nevertheless, this has not coincided with a decrease in within-country inequalities. The increase in income inequality in the North is now well documented and it has been analysed in Chapter 1. In the South, the variations in within-country income inequality appear rather diverse (Wood, 1997).