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Showing posts with the label "Branko Milanovic"

Income Inequality, Poverty and ‘Populism’

In a recent article, former World Bank chief economist, Branko Milanovic reckoned there were two curses for European capital: immigration and rising inequality.   “The fact that the European Union is so prosperous and peaceful, compared both to its Eastern neighbors (Ukraine, Moldova, the Balkans, Turkey) and more importantly compared to the Middle East and Africa means that it is an excellent emigration destination. Not only is the income gap between the “core” Europe of the former EU15 and the Middle East and Africa huge, it has grown. Today, West European GDP per capita is just shy of $40,000 international dollars; sub-Saharan’s GDP per capita is $3,500 (the gap of about 11 to 1). In 1970, Western Europe’s GDP per capita was $18,000, sub-Saharan, $2,600 (the gap of 7 to 1). Since people in Africa can multiply their incomes by ten times by migrating to Europe, it is hardly surprising that, despite all the obstacles that Europe has recently began placing in the way of the migrants, t
"But then –the third event—globalized capitalism that exhibits all the features that Marx so eloquently described in  Das Capital , and the Global Financial Crisis, made his thought relevant again. By now he was safely ensconced into the Pantheon of global philosophers, his every extant word published, his books available in all the languages of the world, and  his status, while still subject to vagaries of time, safe—at least in the sense that it could never fall into obscurity and oblivion. In fact, his influence is inextricably linked with capitalism. So long as capitalism exists, Marx will be read as its most astute analyst. If capitalism ceases  to exist, he will be read as its best critic. So whether we believe that in another 200 years, capitalism will be with us or not, we can be sure that Marx will." The influence of Karl Marx – a counterfactual