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Globalization, Economic Development and Inequality

An Alternative Perspective Edited by Erik S. Reinert, Professor of Technology Governance and Development Strategies, Talllinn University of Technology, Estonia and The Other Canon Foundation, Norway
The expert contributors gathered here approach underdevelopment and inequality from different evolutionary perspectives. It is argued that the Schumpeterian processes of ‘creative destruction’ may take the form of wealth creation in one part of the globe and wealth destruction in another. Case studies explore and analyse the successful 19th century policies that allowed Germany and the United States to catch up with the UK and these are contrasted with two other case studies exploring the deindustrialization and falling real wages in Peru and Mongolia during the 1990s. The case studies and thematic papers together explore, identify and explain the mechanisms which cause economic inequality. Some papers point to why the present form of globalization increases poverty in many Third World nations.
Extent: 352 pp
Hardback Price: $165.00 Web: $148.50
Publication Date: 2004
ISBN: 978 1 85898 891 7
Availability: In Stock
Paperback Price: $64.00 Web: $51.20
Publication Date: 2007
ISBN: 978 1 84720 472 1
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  • Economics and Finance
  • Evolutionary Economics
  • Welfare Economics
Evolutionary economics gained acceptance for the study of industrialized countries during the 1990s but has, as yet, contributed little to the study of world income inequality.

The expert contributors gathered here approach underdevelopment and inequality from different evolutionary perspectives. It is argued that the Schumpeterian processes of ‘creative destruction’ may take the form of wealth creation in one part of the globe and wealth destruction in another. Case studies explore and analyse the successful 19th century policies that allowed Germany and the United States to catch up with the UK and these are contrasted with two other case studies exploring the deindustrialization and falling real wages in Peru and Mongolia during the 1990s. The case studies and thematic papers together explore, identify and explain the mechanisms which cause economic inequality. Some papers point to why the present form of globalization increases poverty in many Third World nations.

Members of the anti-globalization movement will find the explanations given in this book insightful, as will employees of international organizations due to the important policy messages. The theoretical interest within the book will appeal to development economists and evolutionary economists, and policymakers and politicians will find the explanations of the present failure of many small nations in the periphery invaluable.
‘This book offers a very interesting alternative approach to studying the impacts of globalization and would be a useful resource for researchers as well as postgraduate students (and perhaps advanced undergraduate students) of evolutionary economics, eco­ nomic geography and international trade . It will also be of interest to policy­makers and members of international organizations (including the so-called Washington Institutions!).’
– Dimitris Ballas, Economic Issues
Contributors: D.B. Audretsch, J.G. Backhaus, Å. Cappelen, A.M. Daastøl, W. Drechsler, D. Ernst, C. Freeman, M. Hudson, B.-Å. Lundvall, C. Perez, E.S. Reinert, S. Roca, L. Simabuko
Contents:

Introduction
Erik S. Reinert

PART I: FOUNDATIONS OF AN ALTERNATIVE THEORETICAL PERSPECTIVE
1. The Other Canon: The History of Renaissance Economics
Erik S. Reinert and Arno M. Daastøl

2. Natural versus Social Sciences: On Understanding in Economics
Wolfgang Drechsler

PART II: THE STRATEGY OF SUCCESS: NINETEENTH-CENTURY UNITED STATES AND GERMANY
3. The Views of the German Historical School on the Issue of International Income Distribution
Jürgen G. Backhaus

4. Technical Progress and Obsolescence of Capital and Skills: Theoretical Foundations of Nineteenth-Century US Industrial and Trade Policy
Michael Hudson

PART III: THE STRATEGY OF FAILURE: LATE TWENTIETH-CENTURY DEINDUSTRIALIZATION AND THE ECONOMICS OF RETROGRESSION
5. Natural Resources, Industrialization and Fluctuating Standards of Living in Peru, 1950–1997: A Case Study of Activity-Specific Economic Growth
Santiago Roca and Luis Simabuko

6. Globalization in the Periphery as a Morganthau Plan: The Underdevelopment of Mongolia in the 1990s
Erik S. Reinert

PART V: TECHNICAL CHANGE AND THE DYNAMICS OF INCOME INEQUALITY
7. Technological Revolutions, Paradigm Shifts and Socio-institutional Change
Carlota Perez

8. Income Inequality in Changing Techno-economic Paradigms
Chris Freeman

9. Information Technology in the Learning Economy: Challenges for Developing Countries
Dieter Ernst and Bengt-Åke Lundvall

10. Diversity: Implications for Income Distribution
David B. Audretsch

11. Convergence, Divergence and the Kuznets Curve
Ådne Cappelen

Index