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63-476: The idea of a new international economic order emerged from the experiences of decolonization after the Second World War. Newly decolonized countries gained political sovereignty but "felt that their de jure political colonization ended only to be replaced by a de facto economic colonization." This mission to achieve a more equitable international system was motivated also by increasing inequality in

126-496: A "reversal of fortune" around 1800 as regions which were under-developed at the time of colonization were able to industrialize more effectively. In the context of development, path dependence is the idea that certain points in history may have an outsized and persistent impact on the long-term economic and political character of nations. These points may produce outcomes that induce positive feedback and are therefore difficult to reverse. Political scientist James Mahoney has examined

189-439: A consequential effect of the difference in political institutions. In their paper “Paths of Economic and Political Development ” Acemoglu and Robinson discuss the intertwined nature of economic institutions to political ones. The authors conclude that although economic institutions are the key factor to final economic outcomes, they are an endogenous one. Meaning economic institutions are determined by political institutions and

252-507: A foundation of democratic political institutions. Others on the other hand have argued that a country's success is related to the tradeoff between “dictatorship and disorder”. Dyankov et al in “The New Comparative Economics” discusses this idea and uses the IPF (institutional Possibility Frontier) to measure the optimal points of dictatorship vs disorder trade off in individual countries. The idea of new comparative economics focuses on comparing

315-441: A given society in order to reach its optimum. Many now argue that this study is most relevant to our modern-day capitalist society in order to impose efficient institutional design depending on a country's specific characteristics. In a widely cited paper by Daron Acemoglu , Simon Johnson and James A. Robinson , the authors concluded that the majority of present-day inequality among former European colonies can be attributed to

378-554: A major decrease in world inequality. Since China's Reform and Opening Up , more than 1 billion Chinese people have been lifted out of poverty. The majority of global poverty reduction between 1981 and 2008 occurred in China. As academic Lan Xiaohuan writes, during that period, "the number of poor people in the world outside China remained more or less unchanged. It can therefore be concluded that achievements in global poverty reduction come mainly from China." Overall, social spending

441-710: A metric to measure the success of independence movements and completing the decolonization process. In 1974, the United Nations General Assembly adopted the "Declaration for the Establishment of a New International Economic Order" along with its accompanying program of action and formalized this sentiment among nation states. A few months later the UN General Assembly adopted the "Charter of Economic Rights and Duties of States". Since then, there have been many meetings to realize

504-527: Is a human right that recognizes every human right for constant improvement of well-being . It was recognized by the United Nation as an international human right in 1986. The right to development was debated for decades prior to its adoption as an international human right by the UN in 1986. Conceptual differences were impacted by Cold War political positions. The right to development is now included in

567-874: Is central to achieving them. Inequality can be measured by metrics such as the Gini coefficient . According to the United Nations Human Development Report 2004, the gross domestic product (GDP) per capita in countries with high, medium and low human development (a classification based on the UN Human Development Index ) was 24,806, 4,269 and 1,184 PPP$ , respectively (PPP$ = purchasing power parity measured in United States dollars ). Economic institutions such as competitive markets, credible contracts and systems of property rights allow economic agents to pursue

630-425: Is complex it leads to opposing entities in a country not being able to agree on a set of economic institutions that maximize “aggregate growth” and thus making some countries fall behind. Simply proving the influence of political institutions on economic ones and with that the development of a country. The main conclusion the authors arrive at is that the economic institutions which promote prosperity are conditioned on

693-499: Is inequality between people across countries. International inequality research has primarily been concentrated on the rise of international income inequality, but other aspects include educational and health inequality , as well as differences in medical access. Reducing inequality within and among countries is the 10th goal of the UN Sustainable Development Goals and ensuring that no one is left behind

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756-533: Is lower in the Global South , with some regions registering just a few percentage points of GDP. Potential approaches to decrease inequality include: Research has stressed the need to address inequality with a multi-pronged approach, including taxation reform and curbing excesses associated with financial deregulation, country-specific circumstances, and potential trade-offs with other policy objectives. Right to development The right to development

819-500: Is now unimodal, with most people living in middle-income countries. As of 2000 , a study by the World Institute for Development Economics Research at United Nations University found that the richest 1% of adults owned 40% of global assets, and that the richest 10% of adults accounted for 85% of the world total. The bottom half of the world adult population owned barely 1% of global wealth. Oxfam International reported that

882-450: Is the biggest health crisis in a century. Not only were poor countries with weak health care systems hard-hit, but also economically strong and developed rich countries. America is considered the most hit country in a term of unequal access to resources and health services. One of the reasons for their highest number of cases and deaths is their worst average healthcare standards among the major developed economies. The poorest suffer from

945-518: Is the one between low- and high-achieving students. Education from home implies a large amount of self-regulated learning where students must independently acquire and understand the academic content without the support of teachers. This self-regulated learning may be feasible for high-achieving students, but it may be especially challenging for low-achieving students and for students with special needs. In addition, in some countries, girls have faced widespread discrimination in access to education and to

1008-489: The "Right to Development" in 1986. From the 1980s onward, the Washington Consensus and economic globalization on terms often described as neoliberal became dominant. The economic reach of multinational corporations, rather than being circumscribed, would be expanded significantly. Trade in commodities would shift away from state-dominated cartels towards increasingly financialized markets. The formation of

1071-593: The Caribbean Community , reducing developed-country tariffs and other obstacles to free trade, expanding generalized trade preferences, and designing other agreements to reduce trade barriers . These proposals to restructure the international economic system also sought to reform the Bretton Woods system , which had benefited the leading states that had created it – especially the United States . This set of proposals proclaimed that facilitating

1134-598: The General Assembly is "Concerned that indigenous peoples have suffered from historic injustices as a result of, inter alia, their colonization and dispossession of their lands, territories and resources, thus preventing them from exercising, in particular, their right to development in accordance with their own needs and interests." Article 23 elaborates "Indigenous peoples have the right to determine and develop priorities and strategies for exercising their "right to development". In particular, indigenous peoples have

1197-580: The North–South Summit in Cancun in 1981, where, according to historian Michael Franczak, "Reagan promised the attending heads of state that private investment and free markets were the surest path to development, prosperity, and, yes, democracy." Within the context of the worldwide debt crisis in the 1980s, it was very difficult to realize the NIEO. Unrealized NIEO proposals contributed to the formulation of

1260-457: The World Bank , say that "Covid-19 has increased inequality in nearly every sphere: in the availability of vaccines, in economic growth rates, in access to education and health care, and the scale of job and income losses". Between 2020 and 2021 global billionaire wealth grew by $ 4.4 trillion but at the same time, more than 100 million people fell below the poverty line . COVID-19 caused

1323-585: The World Trade Organization and the proliferation of free trade agreements would compel the reduction of barriers to trade, generally on strictly reciprocal terms. Parts of the NIEO were realized, such as the non-legal, non-binding Restrictive Business Practice Code adopted in 1980 and the Common Fund for Commodities , which came in force in 1989. In addition, in World Trade Organization , Matsushita et al. state, "The realization of

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1386-515: The right of self-determination , especially when it comes to sovereignty over natural resources. Another key theme was the need for a new commodity order through international commodity agreements and a common fund for commodity price stabilization. Restructuring international trade was also central as a means to improve developing countries' terms of trade , such as by diversifying developing economies through industrialization, integrating developing countries economies into regional free trade blocs like

1449-665: The 4th of December 1986. A total of 146 States voted for the resolution with 8 abstentions (Denmark, Finland, the Federal Republic of Germany, Iceland, Israel, Japan, Sweden and the United Kingdom of Great Britain and Northern Ireland). The only state to vote against the declaration was the United States of America. The text of the declaration was the result of significant compromises. It contained ten short articles and ambiguous wording. The Preamble of

1512-585: The Declaration on the Right to Development states "development is a comprehensive economic, social, cultural and political process, which aims at the constant improvement of the well-being of the entire population and of all individuals on the basis of their active, free and meaningful participation in development and in the fair distribution of benefits resulting therefrom." The 1992 Rio Declaration on Environment and Development , also known as Rio Declaration or

1575-616: The Declaration on the Right to Development, as a universal and inalienable right and an integral part of fundamental human rights. As stated in the Declaration on the Right to Development, the human person is the central subject of development. While development facilitates the enjoyment of all human rights, the lack of development may not be invoked to justify the abridgement of internationally recognized human rights. States should cooperate with each other in ensuring development and eliminating obstacles to development. The international community should promote an effective international cooperation for

1638-486: The G.R.E.G, recognizes the right to development as one of its 27 principles. Principle 3 of the Declaration states "The right to development" must be fulfilled so as to equitably meet developmental and environmental needs of present and future generations." The 1993 Vienna Declaration and Programme of Action states in Article 10 "The World Conference on Human Rights reaffirms the "right to development", as established in

1701-511: The NIEO for using central planning and monopolistic power to extort transfers of income and wealth from the developed countries. In his view, commanding prices for raw materials above their natural level usually reduces consumption and thus causes unemployment among producers, and price regulation typically gives the extra income to those in control of who is allowed to produce, e.g., to governments or land-owners. Newly elected President Ronald Reagan took these calls for market-led foreign policy to

1764-842: The NIEO visible in the policy arena. In the 21st century, the idea of an NIEO has been endorsed by the Group of Friends in Defense of the Charter of the United Nations . In addition, to mark the 50 year anniversary of the original NIEO proposals in 2024, Progressive International convened a global 2-year process to update the original NIEO. The renewed NIEO proposals were published in September 2024. International inequality International inequality refers to inequality between countries, as compared to global inequality, which

1827-444: The NIEO. In 2018, the United Nations General Assembly adopted the resolution "Towards a New International Economic Order", which reaffirmed "the need to continue working towards a new international economic order based on the principles of equity, sovereign equality, interdependence, common interest, cooperation and solidarity among all States." The main principles of the original NIEO are: The main reforms required by

1890-655: The New International Economic Order was an impetus for developing country support for the Tokyo Round of trade negotiations. Critics of the WTO continue to state that little of substance for developing countries came out of either the Tokyo or Uruguay Rounds . The adoption of the 1974 Declaration and the much more recent 2018 resolution "Towards a New International Economic Order" keeps the ideas of

1953-465: The change of view in providing certain activities, goods and services, and certain production processes. They are considered to be riskier and costlier. Staff shortages and breaks of working activity because of compulsory quarantines of Covid-positive workers are the reason for the replacement of the human labor force with robots. Robots are easily managed, don't need masks, can be easily disinfected, and don't get sick. The threat of automation has spread to

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2016-435: The context of development can be found in the notion of dualism in the world, understood as "the coexistence of two situations or phenomena (one desirable and the other not) that are mutually exclusive to different groups of [international] society — for example, extreme poverty and affluence, modern and traditional economic sectors, growth and stagnation, and higher education among a few amid large-scale illiteracy." one can find

2079-507: The differences in institutions of capitalism in different countries. The new reforms to market economy and democracy have been different in each specific country and thus have reached different levels of efficiency. This can than manifest in the final outcome we call International inequality. According to Dyankov Institutions are made and work to control the “twin dangers” of disorder and dictatorship. Coase (1960), also argues that "no rules are fully enforced, and no institution fully eliminates

2142-407: The distribution of resources. They identify the above mentioned as the “two main state variables”. Accordingly, we find the political institutions to affect economic institutions both directly and indirectly ( de jure & de facto power). Connecting to the issue of international inequality, the distribution of resources is identified as the main conflicting point. As the distribution of resources

2205-421: The economic activities which form the basis of growth. It has been argued that the presence or absence of strong economic institutions is a primary determinant of development. Economists have begun to consider the set of economic institutions adopted by countries as a choice that is in turn determined endogenously by competing social forces. According to this theory the differences in economic institutions arise as

2268-637: The enjoyment of all human rights" was adopted by the UN Human Rights Council . Having opposed the right to development in the 1986 Declaration, the United States changed its position and supported the right in the Vienna Declaration and Programme of Action. The 2007 Declaration on the Rights of Indigenous Peoples recognizes the right to development as an indigenous peoples' right. The declaration states in its preamble that

2331-443: The extent to which their learning is supported by their family and home environment background. Lack of opportunities, tools, or access to affordable, reliable internet connections were daily problems to deal with. Children from low-income families were more likely to be excluded from online distance learning because of an inability to afford sufficient internet or devices. Another dimension of inequality relevant to distance learning

2394-458: The internet. Society was much more likely to expect them to take on a greater burden in the household during distance learning than boys. In developing and poor countries girls who were out of school were at greater risk than boys of facing abuses such as child marriage and other forms of gender-based violence . Between 1820 and 2000, global income inequality increased with almost 50%. However, this change occurred mostly before 1950. Afterwards,

2457-491: The lack of a universal healthcare system and high prices of medicaments (and for health care, in general) the most. Many Americans skipped testing to know if they are infected because of the high price of tests. They went to work, spreading the virus mostly among those, who could not have a home office. After being infected, they could not afford to buy medicament or to search for medical help since they have no insurance . The development, production, and distribution of vaccines

2520-501: The level of inequality remained mostly stable. It is important to differentiate between between-country inequality, which was the driving force for this pattern, and within country inequality, which remained largely constant. Global income inequality peaked approximately in the 1970s, when world income was distributed bimodally into "rich" and "poor" countries with little overlap. Since then, inequality has been rapidly decreasing, and this trend seems to be accelerating. Income distribution

2583-406: The long queues for social security benefits. The loss of jobs differs by the nature of the job. Tourism, gastronomy, recreational services and accommodation, airlines, and industries that rely on personal interactions have been the hardest hit. Lockdown rules and social distance requirements limited employees. The inability of workers to work from home deprived a lot of them of their jobs. COVID-19

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2646-623: The mandate of several UN institutions and offices. The UN's declaration was presaged by the 1974 Declaration on the Establishment of a New International Economic Order and in 1977 by a resolution of the United Nations Commission on Human Rights . The right to development was first recognized in 1981 in Article 22 of the African Charter on Human and Peoples' Rights as a definitive individual and collective right. Article 22(122) provides that: "All peoples shall have

2709-478: The original NIEO are: Renewed NIEO proposals - generated to mark the 50th anniversary of the original proposals - include additional principles such as the need to address a "rapidly changing climate". The United States government rejected the NIEO almost immediately. Neoconservatives and libertarians criticized the NIEO and became influential in US foreign policy circles. For example, economist Harry Johnson criticized

2772-459: The overall state of inequality, whether in domestic or foreign levels. Multiple other causes of international inequality have been proposed, such as: The worsening of inequality is considered the most significant outcome of COVID-19 . The pandemic has had the greatest impact on vulnerable groups such as the elderly, people with disabilities, children, women and refugees, low-income people, youth, and informal workers. The research and measures of

2835-601: The persisting role of economic institutions. Describing European colonization as a "natural experiment," they argued that colonizers who encountered dense populations with developed economies such as in Central America and India were incentivized to impose extractive economic institutions, while colonizers who encountered sparse populations with few natural resources such as in North America were more likely to institute broad-based property rights. This resulted in

2898-591: The political consequences of a period of liberal reform in Central America during the 19th and early 20th centuries, and argued that whether policies were implemented along radical or reformist guidelines directly determined the success of the liberalization efforts and ultimately resulted in vastly different political outcomes which persisted for decades, ranging from military authoritarian regimes ( Guatemala and El Salvador ) to progressive democracy ( Costa Rica ). Another concept of international inequality in

2961-505: The political culture of these poor countries. It also refutes the recommendations given and forced upon developing countries. Instead, it focuses on external and international factors such as international dependence on economics, finance, and trading, and forces that might not have given birth to international inequality, but surely have played an important role in keeping the gap open and wide. Therefore, this doctrine suggests fundamental economic, political, and institutional reforms not only on

3024-541: The rate for lower-middle-income countries of 45.3 per 100, and 30-fold higher than lower-income countries with 4.2 per 100." Also, the efficacy varied between distributed vaccines. They are more likely to be a lower efficacy on average in lower-income locations. Sputnik , Sinopharm , and Janssen vaccines are mostly used in low and middle-income countries with lower efficacy against new variants of virus compared to vaccines from Pfizer and Moderna – used mainly in higher-income areas. The control measures introduced around

3087-543: The rate of economic development and market share among developing countries will fight global issues such as hunger and despair more effectively than the current focus on philanthropy and development aid. This advocacy among nations of the Non-Aligned Movement can also be understood as an extension of the decolonization movement that was present in many developing countries during that time. In this perspective, political and economic equity were perceived as

3150-479: The realization of the right to development and the elimination of obstacles to development. Lasting progress towards the implementation of the right to development requires effective development policies at the national level, as well as equitable economic relations and a favorable economic environment at the international level." China participated in the drafting of the Vienna Declaration and Programme of Action, and its resolution on "the contribution of development to

3213-439: The regional and domestic levels but also on global and foreign levels. However, there are criticisms about this type of thesis. First, although it indicates a logical and well-founded explanation regarding international inequality, it lacks a comprehensive solution to the said problem. Second, the number of successful fundamental reforms in many of the concerned countries largely did not showcase significant progress and decrease in

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3276-423: The richest 1 percent of people owned 48 percent of global wealth As of 2013 , and would own more than half of global wealth by 2016. In 2014, Oxfam reported that the 85 wealthiest individuals in the world had a combined wealth equal to that of the bottom half of the world's population, or about 3.5 billion people. As of 2001 , the major component of the world's income inequality (the global Gini coefficient )

3339-473: The right to be actively involved in developing and determining health, housing and other economic and social programmes affecting them and, as far as possible, to administer such programmes through their own institutions." The 2018 United Nations Declaration on the Rights of Peasants and other people working in rural areas also mentions the right to development, and in particular the UN Declaration on

3402-560: The right to their economic, social and cultural development with due regard to their freedom and identity and in the equal enjoyment of the common heritage of mankind." The right to development was subsequently proclaimed by the United Nations in 1986 in the "Declaration on the Right to Development," which was adopted by the United Nations General Assembly resolution 41/128. The vote took place on

3465-493: The share of global national income between developed and underdeveloped countries, which more than doubled between 1938 and 1966. From its beginnings in 1964, the United Nations Conference on Trade and Development (UNCTAD), along with the associated Group of 77 and the Non-Aligned Movement , was the central forum for discussions of the NIEO. Key themes of the NIEO included both sovereign equality and

3528-441: The trace of dualistic society in structural-change as well as international-dependence theories. This concept demonstrates how the gap between the poor and the rich in the global world is persistent if not steadily increasing. There are four key arguments in this thesis; The dualism-development thesis rejects the traditional neoclassical and empirical theories that put the blame of poverty and inequality merely on internal factors and

3591-426: The transaction costs of dictatorship and disorder". The IPF as a system can help to discuss the alternative forms of social control of business. It helps determine the efficient choice by finding the shape and location of a countries IPF on an axis of social loses of dictatorship versus the social losses of disorder. In the end the location of the IPF shows a countries “civic capital” or the institutional possibility of

3654-422: The work of low-skilled, person-to-person service workers. Before the pandemic, these jobs were seen by literature as less affected – for example, in health and education. New labor market uncertainty brings a decrease in the demand for certain types of labor. This shift consequently causes an increase in inequality. Another inequality was visible after the beginning of lockdowns . Millions of newly unemployed joined

3717-476: The world PPP income. This group includes India, Indonesia and rural China, and comprises 2.1 billion people with an income level under 1,000 PPP$ . In terms of between country inequality, between 1820 and 2000, Latin America, Africa and the middle east almost always had a higher average Gini coefficient than Europe, implying a higher level of inequality. Asia was usually below average. As of 2017 , over 70% of

3780-422: The world to curb the spread of the virus had a considerable impact on education. By April 2020, an unprecedented 1.4 billion students were shut out of their pre-primary, primary, and secondary schools in more than 190 countries and the classroom present education had moved to online distance learning . The number and duration of periods of school closures have varied across countries. Inequalities were observable in

3843-593: The world's adults had under $ 10,000 in wealth. Only 0.7% of the world had one million dollars or more in wealth, but this number is increasing. As of 2008 , there were 1,125 billionaires (in US dollars) who owned $ 4.4 trillion in assets. As of 2006 , the total value of global assets was about $ 125 trillion. The evolution of the income gap between poor and rich countries is related to convergence . Convergence can be defined as "the tendency for poorer countries to grow faster than richer ones and, hence, for their levels of income to converge". China's economic growth led to

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3906-490: Was a scientific, political, and economic triumph seeing that it was relatively quick. However, despite having the technology and the resources, the society failed to raise vaccine supply and distribute enough doses in poor countries. "As of October 1st, 2021, the highest-income countries—as classified by the World Bank—had a per-capita vaccination rate of 125.3 vaccinations per 100 people, representing nearly 3-fold higher than

3969-437: Was comprised by two groups of countries (called the "twin peaks" by Quah [1997]). The first group has 13% of the world's population and receives 45% of the world's PPP income. This group includes the United States, Japan, Germany, the United Kingdom, France, Australia and Canada, and comprises 500 million people with an annual income level over 11,500 PPP$ . The second group has 42% of the world's population and receives only 9% of

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