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The Geopolitical Economy of International Inequality

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  • Alan Freeman

Abstract

This article shows that economic inequality between nations has systematically worsened in monetary terms since 1950, and that the principal explanator is inequality between blocs of nations, notably the persistent gap between the Global North and Global South. By 2022, the GDP per capita of the North was 12 times greater than that of the South, this ratio being twice as great as in 1950. This general trend has two consistent exceptions, China and Vietnam. There was also a brief reversal of the trend from 2000 to 2012. However, except for China and Vietnam, it has resumed since then. The article shows that both the Global South and North are coherent entities: they are historically stable and converge internally while diverging from each other. It assesses the implications for international inequality and convergence research and draws out some consequences for world geopolitical relations. Finally, the article sets out the case for an international classification standard that facilitates systematic research into inter‐bloc inequality.

Suggested Citation

  • Alan Freeman, 2024. "The Geopolitical Economy of International Inequality," Development and Change, International Institute of Social Studies, vol. 55(1), pages 3-37, January.
    • Handle: RePEc:bla:devchg:v:55:y:2024:i:1:p:3-37
    DOI: 10.1111/dech.12812
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    References listed on IDEAS

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    1. Freeman, Alan, 2008. "The Poverty of Statistics," MPRA Paper 16827, University Library of Munich, Germany, revised 15 Aug 2009.
    2. Facundo Alvaredo & Thomas Piketty & Emmanuel Saez & Lucas Chancel & Gabriel Zucman, 2018. "World Inequality Report 2018," PSE-Ecole d'économie de Paris (Postprint) halshs-01885458, HAL.
    3. Alan Freeman, 2009. "The Poverty of Statistics and the Statistics of Poverty," Third World Quarterly, Taylor & Francis Journals, vol. 30(8), pages 1427-1448.
    4. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    5. Farhad Rassekh, 1998. "The Convergence Hypothesis: History, Theory, and Evidence," Open Economies Review, Springer, vol. 9(1), pages 85-105, January.
    6. Galor, Oded, 1996. "Convergence? Inferences from Theoretical Models," Economic Journal, Royal Economic Society, vol. 106(437), pages 1056-1069, July.
    7. Lambert, Peter J & Aronson, J Richard, 1993. "Inequality Decomposition Analysis and the Gini Coefficient Revisited," Economic Journal, Royal Economic Society, vol. 103(420), pages 1221-1227, September.
    8. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
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