Why Global Inequality Matters

Abstract

Taking the perspective of a development economist, and reflecting on issues raised by participants in this forum, this paper elucidates why inequality (and not just poverty) matters, among individuals and across countries, and why global inequality matters in the context of globalization. The focus is on the current asymmetries in how global integration affects poor versus rich countries (and people within countries), and on the resulting limits to poor countries' (and poor people's) ability to capture the potential benefits of globalization. These asym metries reflect and reinforce existing levels of inequality across and within countries, and raise the risk that globalization will leave some countries and some poor people behind.