In Kenya the Gini coefficient of inequality is at around 0.45%
. Therefore, the economic growth statistics present an unequivocal picture of a highly unequal society, whose development strategy is largely leading to accumulation of wealth by a few and worsening the poverty of the majority.
Instead of concerted and sustained efforts for a strong, sustained economic recovery to overcome protracted stagnation, the near policy consensus on fiscal austerity in the G7 and the G20 OECD countries, except for the US and Japan, has dragged down economic recovery in developing countries.
International inequality has grown over recent centuries, especially the last two. Before the Industrial Revolution, between-country inequalities were small, while within-country inequalities accounted for most of overall global income inequality. Now, inter-country income inequalities account for about two-thirds of world inequality with intra-country inequality accounting for a third.
Global income inequality among different regions began to increase about five centuries ago, before accelerating about two centuries ago, according to the great economic historian Angus Maddison. After the brief reversal during the ‘Golden Age’ quarter century after the Second World War, higher commodity prices in the decade until 2014, despite protracted slowdowns in most rich countries following the 2008 financial crisis, reduced international disparities between North and South.
Cuba’s economic difficulties will be aggravated by the uncertainty regarding how U.S. president-elect Donald Trump will deal with the thaw inherited from President Barack Obama.
Privatization of SOEs has been a cornerstone of the neo-liberal counterrevolution that swept the world from the 1980s following the economic crisis brought about by US Fed’s sharp hike in interest rates. Developing countries, seeking aid from the International Monetary Fund (IMF) and the World Bank, often had to commit to privatization as a condition for credit support.
From the 1980s, various studies purported to portray the public sector as a cesspool of abuse, inefficiency, incompetence and corruption. Books and articles with pejorative titles such as ‘vampire state’, ‘bureaucrats in business’ and so on thus provided the justification for privatization policies. Despite the caricature and exaggeration, there were always undoubted horror stories which could be cited as supposedly representative examples. But similarly, by way of contrast, other experiences show that SOEs can be run quite efficiently, even on commercial bases, confounding the dire predictions of the prophets of public sector doom.
Privatization has been one of the pillars of the counter-revolution against development economics and government activism from the 1980s. Many developing countries were forced to accept privatization as a condition for support from the World Bank while many other countries have embraced privatization, often on the pretext of fiscal and debt constraints.
The new US census data released in late September show that 3.5 million people in the US climbed out of poverty, as the tepid economic recovery continues. Employers are finally creating more jobs and paying higher wages than seven years after the Great Recession started following the 2008 financial crisis.
Today 21 September 2016 is the International Day of Peace.Kenya has the largest number of jobless youth in East Africa
, putting a strain on the economy’s growth and also threatening peace and security when hopeless youth gravitate towards violent extremist groups.
“When we were forced to leave our country, I never thought that a community in Lebanon would accept and treat me as an active member, the way I have been at the Kfeir Women’s Working Group,” says Hiba Kamal, an 18-year-old refugee from Syria who travelled to Lebanon with her family five years ago fleeing instability in her own country.
The joint military manoeuvres between the Russian and Chinese navies, armies, and air forces has kicked off. It's a clear message for Washington, which has recently strengthened its action in Asia, indicating that as a country that overlooks the Pacific, it wants to play an important role in the continent, aimed at containing the Chinese expansion.
At the UN Millennium Summit in September 2000, world leaders committed to halve the share of people living on less than a dollar a day by 2015. The World Bank’s poverty line, set at $1/day in 1985, was adjusted to $1.25/day in 2005, an increase of 25% after two decades. This was then re-adjusted to $1.90/day in 2011/2012, an increase by half over 7 years! As these upward adjustments are supposed to reflect changes in the cost of living, but do not seem to parallel inflation or other related measures, they have raised more doubts about poverty line adjustments.
We often read comparisons between the prices of solar energy or wind energy with the prices of fossil fuels. It is encouraging to see that renewables are rapidly becoming competitive, and are often cheaper than coal or oil. In fact, if coal, oil and natural gas were given their correct prices renewables would be recognized as being incomparably cheaper than fossil fuels.
The dismissal of now ex-president Dilma Rousseff brings to a close a turbulent chapter of Brazil’s crisis, but does nothing to clear up the doubts that threaten the political system and the economy of Latin America’s powerhouse.