TEXTGrowingInequality

Thedegreeofincomeinequalityvariesgreatlyfromregiontoregion.ItisgreatestinLatinAmericaandsub-SaharanAfrica,andlowestinEasternEurope;otherregionsfallbetweenthesetwoextremes.InLatinAmerica,theaverageGinicoefficient—themostcommonlyusedmeasureofinequality,with0representingperfectequalityand1representingtotalinequality—isalmost0.5.TheaverageGinicoefficientinsub-SaharanAfricaisslightlylower,butthereisconsiderablevariationamongcountries.IncomeinequalityhasaregionaldimensioninbothAfricaandLatinAmerica—averageincomesaresignificantlyhigherinurbanareasthaninruralareas.UnitNine

ShouldEquityBeaGoalofEconomicPolicy?UnitNine

ShouldEquityBeaGoalofEconomicPolicy?Inrecentyears,incomeinequalityhasbeenincreasinginalargenumberofcountries.Thisincreasehasbeenmoststrikinginthetransitioneconomies,wheretheaverageGinicoefficienthadbeenaround0.25untilthelate1980s;bythemid1990s,ithadrisentomorethan0.30.Whilethismaynotappeartobealargeincrease,itisquitesignificantfortheshortperiodbeingassessed.Ginicoefficientstendtoberelativelystableincountriesoverlongperiods.IncomeinequalityhasalsoincreasedinseveralmajorindustrialcountriesandisbeginningtoincreaseinsomeEastAsiancountries.UnitNine

ShouldEquityBeaGoalofEconomicPolicy?Muchofthedebateaboutincomedistributionhascenteredonwageearnings.Butwagestellonlypartofthestory.Thedistributionofwealth(and,byimplication,capitalincome)ismoreconcentratedthanlaborincome.InAfricaandLatinAmerica,unequalownershipoflandhasbeenidentifiedasanimportantfactorintheoveralldistributionofincome.Furthermore,inrecentyears,therehasbeenashiftfromlabortocapitalincome(includingincomefromselfemployment)inmanycountries.Intransitioncountries,thisshifthasbeendueprimarilytotheprivatizationofstate-ownedassets.Theanalysisoftrendsinnonlaborincomeincountrieswithwelldevelopedcapitalmarketsandpensionfundsismorecomplicated.Pensionfundsandotherfinancialinstitutionsreceiveasizableportionofcapitalincome,andtheshareofcapitalincomeintotalhouseholdincometypicallychangesoverthelifecycleoftheindividualsineachhousehold.UnitNine

ShouldEquityBeaGoalofEconomicPolicy?

IsGlobalizationtheCause?Globalizationhaslinkedthelabor,product,andcapitalmarketsofeconomiesaroundtheworld.Increasedtrade,capitalandlabormovements,andtechnologicalprogresshaveledtogreaterspecializationinproductionandthedispersionofspecializedproductionprocessestogeographicallydistantlocations.Developingcountries,withtheirabundantsupplyofunskilledlabor,haveacomparativeadvantagerelativetodevelopedcountriesintheproductionofunskilled-labor-intensivegoodsandservices.Asaresult,productionoftheseproductsindevelopedcountrieshascomeunderincreasedcompetitivepressure.Economictheorytellsusthisshouldapplydownwardpressureontherelativecompensationofunskilledworkersindevelopedcountriesandupwardpressureonthecompensationoftheircounterpartsindevelopingcountries.UnitNine

ShouldEquityBeaGoalofEconomicPolicy?Basedonthistheory,someauthorshaveclaimedthatglobalizationistoblameforgrowingincomeinequalityindevelopedcountries.Othersarguethatthewideninggapbetweenthewagesofskilledworkersandunskilledworkersinthedevelopedcountriesisduetothedevelopmentanddispersionofskill-intensivetechnologiesratherthantoincreasedtrade.Severalempiricalstudieshavetriedtogaugetherelativeimportanceofbothtradeandtechnologicalprogressinthedeclineofrelativewagesofunskilledworkersindevelopedcountries.Estimatesofthecontributionofincreasedtradetothetotalincreaseofthewagedifferentialbetweenunskilledandskilledworkersrangefromnegligibleto50percent.Thislargevariationisafunctionofthestructureofproductionindevelopedcountriesandtheshareoftheirlabormarketthatisindirectcompetitionwithlow-skilledworkersindevelopingcountries.UnitNine

ShouldEquityBeaGoalofEconomicPolicy?

Thedebateregardingtheeffectofglobalizationonincomedistributionindevelopingcountriesmirrorsthedebateondevelopedcountries.Although,allotherthingsbeingequal,increasedopennesswouldbeexpectedtoincreasetherelativewagesofunskilledworkersindevelopingcountries,experiencehasbeenmixed.EvidencesuggeststhattherelativewagesofunskilledworkersincreasedinEastAsiancountriesinthe1960sand1970sbutdecreasedinLatinAmericainthe1980sandearly1990s.TherearetwopossibleexplanationsforwhywagesfellinLatinAmerica:first,theopeningupofdevelopingAsiancountries—Bangladesh,China,India,Indonesia,andPakistan—whereunskilledlaborisevenmoreabundant;second,theavailabilityofnewproductiontechnologiesthatarebiasedtowardskilledlabor.UnitNine

ShouldEquityBeaGoalofEconomicPolicy?

Theeffectglobalizationhasonincomedistributionseemstobedeterminedtosomeextentbyacountry’slevelofdevelopmentandthetechnologiesavailabletoit.Similarly,exposuretointernationalcompetitionmaychangeinstitutions(forexample,tradeunions)andtherebyaffectincomedistribution.Someobserverscontendthat,becauseofthemobilityofcapital,globalizationlimitstheabilityofunionworkerstoachievea“unionwagepremium,”thusdecreasingthebargainingpowerofworkersvis-à-viscapital.Inaddition,globalizationmayleadtosharpshort-runchangesinthedistributionofincome,asbarrierstotradearereducedandthedistributionofproductionisreallocatedamongsectors.UnitNine

ShouldEquityBeaGoalofEconomicPolicy?Itisoftenarguedthatglobalizationmakesitmoredifficultforgovernmentstoimplementequitablepolicies.Increasinglymobilecapitalandlaborhavelimitedtheabilityofgovernmentstolevytaxesandtransferincometothoseaffectedbyglobalization.Totheextentthatcapitalismoremobilethanlabor,theincidenceoftaxestofinancesafetynetsforthoseaffectedbyglobalizationisshiftedtolabor.

PolicyResponsesTheextenttowhichcountrieshavefocusedonpromotingequityandthestrategiestheyhaveadoptedvarywidely.Somecountrieshaveactivelypromotedtheuseofpublicresourcestoraisetheincomesofthoseonthebottomtieroftheincomedistribution.Othershavefocusedonthetoppercentilesbylevyinghighlyprogressivetaxes.Yetothers,concernedthatpoliciestargetingthepoormayresultineconomicinefficienciesanddistortionsthatretardgrowth,havetakenanindirectapproach,seekingtohelplowincomefamiliesbystimulatingoveralleconomicgrowth.UnitNine

ShouldEquityBeaGoalofEconomicPolicy?

InLatinAmericaduringthe1980s,theprimarygoalofpolicymakerswasachievingsustainablegrowth,andaviablebalanceofpaymentsandstructuralreformswereseenascriticaltoachievingthisgoal.Growthhasalsobeenoneoftheprimarygoalsofthetransitioneconomies,buttheirstrategieshaveincludedpoliciesaimedathelpinggroupslikelytobehurtbythetransition.Suchpolicieshaveincludedthedistributionofsharesofprivatizedenterprises,theadaptationofsocialpolicyinstrumentstoprotectvulnerablegroups,andtheestablishmentofsocialsafetynets(forexample,targetedsubsidies,cashcompensationinlieuofsubsidies,severancepayandretrainingforretrenchedpublicsectoremployees,andpublicworksprograms).However,thelackofbudgetaryresourceshasmadeimplementationofthesepoliciesdifficult.UnitNine

ShouldEquityBeaGoalofEconomicPolicy?Fiscalpolicy—taxationandspending—isagovernment’smostdirecttoolforredistributingincome,inboththeshortandthelongrun.However,theeffectofredistributivetaxpolicies,especiallyinthefaceofglobalization,hasbeensmall.Policymakersshouldfocusondevelopingabroadlybased,efficient,andeasilyadministeredtaxsystemwithmoderatemarginalrates.Althoughtheprimarygoalofthetaxsystemshouldbetopromoteefficiency,policymakersalsoneedtoconsiderhowtodistributetheburdenoftaxationsothesystemisseenasfairandjust.Theexpendituresideofthebudgetoffersbetteropportunitiesthanthetaxsideforredistributingincome.Thelinkbetweenincomedistributionandsocialspending—especiallyspendingonhealthandeducation,throughwhichgovernmentscaninfluencetheformationanddistributionofhumancapital—isparticularlystrong,andpublicinvestmentinthehumancapitalofthepoorcanbeanefficientwaytoreduceincomeinequalityoverthelongrun.UnitNineShouldEquityBeaGoalofEconomicPolicy?Theamountofresourcesgovernmentscanandshoulddevotetosocialexpendituresdependsonvariousfactors,includingthetax-to-GDPratioandtheresourcesdevotedtootherspending.Publicexpendituresshoulddisplaceprivateexpendituresonlywhentheyyieldhighersocialbenefits.Priorityshouldbegiventothemostproductivepublicexpenditures,andunproductivepublicexpenditures——forexample,excessivemilitaryspending,wagesforanover-staffedcivilservice,andbudgetarytransferstoinefficientpublicenterprises——shouldbecurtailed.Civilservicereformandtheprivatizationofservicesthatcanbebetterprovidedbytheprivatesector——especiallyifaccompaniedbyareallocationofexpenditurestothesocialsectors——arelikelytobebothgrowth-andequity-enhancing,particularlyindevelopingcountries,wherepublicsectoremployeescomeprimarilyfromthemiddle-andupper-middle-incomeclasses.UnitNineShouldEquityBeaGoalofEconomicPolicy?Outlaysonhealthandeducationcanimprovetheexistingpatternofincomedistribution,dependingtoalargeextentontheirallocationwithinsectorsandwhoreceivesthebenefits.Studiesshowthatspendingonbasichealthcareandprimaryeducationisfarmoreeffectiveinreachingthepoorthanspendingonhighereducationorhospital-basedcurativecare;theformerreducesdisparitiesinhumancapitalacrossincomegroupsandcandecreaseincomeinequalityinthelongrun(see“PublicSpendingonHumanDevelopment,”bySanjeevGupta,BenedictClements,andErwinTiongsoninthisissue).Studiesalsoshowthat,incountrieswithoutsomeformofhealthriskpooling,seriousillnessesarethesinglemostimportantfactordrivingfamiliesintopoverty.UnitNineShouldEquityBeaGoalofEconomicPolicy?Althoughfiscalpolicyisusuallyviewedastheprincipalvehicleforassistinglow-incomegroupsandthoseaffectedbyreformprograms,anumberofcountrieshaveintroducedspecificlabormarketpoliciesinanefforttoinfluenceincomedistribution,therationalebeingthatrelativewagesexertastronginfluenceonoverallincomeinequality.ManyEuropeancountrieshaveoptedforhighminimumwages,generousunemploymentbenefits,andawiderangeofjob-protectionmeasures.Althoughthesepoliciescanresultinrigidities,advocatesmaintainthattheyhelpachieveasociallydesirableredistributionofincome,whileopponentsarguethattheydiscouragenewinvestmentanddampenjobcreationandgrowth.TheUnitedStates,whichhasoptedformoreflexiblelabormarkets,hasachievedhighemploymentlevels,butthecostmaybegreaterincomeinequality.Tomitigatethepotentialeffectofmarketflexibilityonlow-wageworkers,theUnitedStateshasintroducedwagesubsidiesthatUnitNineShouldEquityBeaGoalofEconomicPolicy?simultaneouslyredistributeincomeandpromoteemployment.Giventhepotentiallylargeimpactoflabormarketpoliciesonearnings,thesecompetingvisionsofthelabormarketarecentraltothedebateoverincomeinequalityinmanydevelopingandnewlyindustrializedcountries.Governmentscanalsoindirectlyaffectincomelevelsanddistributionthroughmonetarypolicyandtheiroverallmacroeconomicstance.Forexample,highinflationtendstocurtaileconomicgrowthandincreaseincomeinequality.Tradeliberalization—especiallywhenitoccursindevelopingcountriesthathavehadrestrictivetradepolicies,suchastaxationofagriculturalexportsandprotectivetariffsonimports—mayboosteconomicgrowthandleadtomoreequitableconditions.Currencydevaluationsmayalsohaveimplicationsforequity,particularlyinlow-incomecountries,wherethepoorareoftenconcentratedintheagriculture-intensiveexportsectorandmiddle-andupper-incomeurbandwellerstendtobemoredependentonimports.UnitNine

ShouldEquityBeaGoalofEconomicPolicy?Anotherimportantissueiswhethergovernmentsshouldfocusonoutcomes—suchasdecreasingthenumberofpeoplelivinginpoverty—oronensuringthatallmembersofsocietyhaveequalopportunities.Inextremecasesofincomeinequality,outcomesareclearlycritical.Inothercases,settingupalevelplayingfieldmaybeallthatisnecessary,andgreateremphasiscanbeplacedonpoliciesthatfacilitatemobilitybetweenincomeclassesandonensuringthatincomeandwealthareacquiredjustlyandfairly.Measuresgovernmentscantaketopromoteequalityofopportunityincludederegulatingtheeconomy;settingupstrong,accountableinstitutions,includingawell-functioningjudicialsystem;reducingopportunitiesforcorruptpractices(curbingcorruptioncandirectlyreduceincomeinequality,becausethegainsfromcorruptpracticestendtobecapturedbythewell-to-do);andprovidingadequateaccesstohealthandeducationservices.UnitNine

ShouldEquityBeaGoalofEconomicPolicy?Governmentsseekingtoimplementequity-orientedpoliciesfaceanumberofobstacles.Firstandforemostisthefinancingrequired:highlevelsofspendingontargetedprogramsmaynotbeconsistentwithasustainablemacroeconomicframework.Second,governmentsinmanydevelopingcountries,wherealargeshareofthepopulationisengagedinruralandinformalsectoractivities,maybeunabletoreachthemostvulnerablegroups.Theruralandinformalsectorsmayhavelimitedinteractionwithformalsectorinstitutions,includingthegovernment,makingthedeliveryofgovernmentassistance(forexample,cashtransfers)problematic.Inasimilarvein,alackofadministrativecapacitymayhamperredistributiveefforts;forexample,taxevasionisasevereproblemincountrieswithweaktaxadministration,makingitdifficultforgovernmentstousethetaxsystemasavehicletofinanceredistributivepolicies.Politicalconstraints—low-incomegroupstypicallyhavelesspoliticalpowerthanotherUnitNine

ShouldEquityBeaGoalofEconomicPolicy?interestgroups—mayimpedeeffortstoreallocatespendingtowardthepoororredistributelandorotherassetstothem.Legalimpedimentsmayalsopreventgovernmentsfromtakingmeasurestopromoteequity—forexample,constitutionalrulesonrevenuesharingmaylimittheamountofresourcesacentralgovernmentcanallocatetoredistributivepolicies.(excerptedfromFinance&Development,September1998)UnitNine

ShouldEquityBeaGoalofEconomicPolicy?ExercisesⅠ.TranslatethefollowingintoEnglish,usingthewordsorphrasesinthetext:1.衡量收收入分配的最最常用的指標標themostcommonlyusedmeasuresofincomedistribution2.從勞動動力市場向資資本市場的轉轉移theshiftfromlabourtocapitalmarkets3.生產專專業(yè)化和專業(yè)業(yè)化生產過程程的擴散specializationinproductionandthedispersionofspecializedproductionprocessesUnitNineShouldEquityBeaGoalofEconomicPolicy?4.熟練工工與非熟練工工之間日益拉拉大的工資差差距5.偏向于于技術勞動力力的新生產技技術newproductiontechniquesbiasedtowardskilledlabor6.阻礙增增長的經濟無無效率和扭曲曲economicinefficiencyanddistortionsretardinggrowth7.可持續(xù)續(xù)增長和可行行的收支政策策sustainablegrowthandaviablebalance-of-paymentspolicythewideninggapbetweenthewagesofskilledworkersandthoseofunskilledworkersUnitNineShouldEquityBeaGoalofEconomicPolicy?8.具有廣廣泛基礎的、、有效而易于于管理的稅收收體系9.減少不不同收入集團團人力資本的的明顯差異reducedisparitiesinhumancapitalacrossincomegroups10.與宏宏觀經濟規(guī)劃劃相一致的既既定項目targetedprogramsconsistentwiththemacroeconomicframework11.關于于財政收入分分配的憲法原原則constitutionalrulesonrevenuesharingabroadly-based,efficientandeasilyadministeredtaxsystemUnitNineShouldEquityBeaGoalofEconomicPolicy?12.通過過解除經濟的的規(guī)定管制來來促進機會平平等13.取代代津貼的現金金補償cashcompensationinlieuofsubsidies14.刺激激公共資源利利用和整體經經濟增長stimulatetheuseofpublicresourcesandtheoveralleconomicgrowth15.采取取有效措施促促進就業(yè)和公公平takeeffectivemeasurestopromoteemploymentandequitytopromoteequalityofopportunitiesthroughderegulatingeconomyUnitNineShouldEquityBeaGoalofEconomicPolicy?Ⅱ.TranslatethefollowingsentencesintoEnglish:1.關于收入分配配的大部分辯辯論集中在工工資收入上，，它被認為是是整體收入分分配的一個重重要因素。但但在非洲和拉拉丁美洲，不不平等的土地地所有權是一一個不可忽略略的因素。(centeron)Muchofthedebateaboutincomedistributionhascenteredonwageearnings,whichhasbeenidentifiedasanimportantfactorintheoveralldistributionofincomes.ButinAfricaandLatinAmerica,unequalownershipoflandisafactorthatcannotbeignored.UnitNineShouldEquityBeaGoalofEconomicPolicy?2.全全球化將全世世界各經濟體體的勞動力、、產品和資本本市場連接起起來，并間接接導致生產專專業(yè)化和專業(yè)業(yè)化生產過程程向地理位置置遙遠地區(qū)擴擴散。(dispersion)Globalizationhaslinkedthelabor,productandcapitalmarketsoftheeconomiesaroundtheworldandhasindirectlyledtogreaterspecializationinproductionandthedispersionofspecializedproductionprocessestogeographicallydistantlocations.UnitNineShouldEquityBeaGoalofEconomicPolicy?3.盡盡管管財政政策被被視為幫助低低收入人群和和受改革計劃劃影響的人們們的主要工具具，許多國家家采取了具體體的勞動力市市場政策來試試圖影響收入入分配。(inaneffortto)Althoughfiscalpoliciesareusuallyviewedastheprincipalvehicleforassistinglowincomegroupsandthoseaffectedbyreformprograms,quiteanumberofcountrieshaveadoptedspecificlabormarketpoliciesinanefforttoinfluenceincomedistribution.UnitNineShouldEquityBeaGoalofEconomicPolicy?4.政政府所能能采取的促進進機會均等的的措施包括：：取消對經濟濟的規(guī)定管制制；建立包括括運作良好的的司法體系在在內的強有力力的，負責任任的機構；減減少腐敗行為為的機會；提提供獲得健康康和教育服務務的充足機會會等。(deregulate)Measuresgovernmentscantaketopromoteequalityofopportunitiesincludederegulatingtheeconomy;settingupstrongandresponsibleinstitutions,includingawellfunctioningjudicialsystem;reducingopportunitiesforcorruptpractices;andprovidingadequateaccesstohealthandeducationservices.UnitNineShouldEquityBeaGoalofEconomicPolicy?5.另另一個個重要問題是是政府是否應應該關注結果果，比如減少少貧困人數，，或保證每個個人都有公平平的機會。(ensure)Anotherimportantissueiswhethergovernmentsshouldfocusonoutcomes—suchasdecreasingthenumberofpeoplelivinginpoverty,orensuringthatallmembersofsocietyhaveequalopportunities.UnitNineShouldEquityBeaGoalofEconomicPolicy?Ⅲ.PutthefollowingpassageintoEnglish:有一種關于財財富分配的理理論表明，不不合理的分配配和腐敗是造造成收入水平平不公的主要要原因。這一一理論認為，，財富要經歷歷4個分配階階段——市場場、政府、非非政府組織、、以及主要表表現為腐敗的的非法活動。。通常第一個個分配階段———市場———會導致資源源分布不均，，而這應該由由第二個分配配階段，即政政府，來糾正正。在第三個個階段，財富富的分配是通通過非政府部部門的捐贈來來實現的。捐捐款是以慈善善活動的形式式贈予窮人的的。接著便是是對財富的非非法掠奪，如如搶劫、貪污污、逃稅和賄賄賂。這些對對社會的公平平和穩(wěn)定所造造成的傷害是是巨大的，而而且是無法測測量的。UnitNineShouldEquityBeaGoalofEconomicPolicy?Onetheoryonwealthdistributionindicatesthatirrationaldistributionandcorruptionarethemajorreasonsfortheunevenincomelevel.Accordingtothistheory,wealthgoesthroughfourstagesofdistribution—themarket,thegovernment,non-governmentalorganizationsandunlawfulactivities,mainlycorruption.Usuallythefirststageofdistribution——themarket—willresultinanunevenspreadofresources,whichshouldberedressedbytheseconddis