Download The Market as Means Rather than Master

THE MARKET AS MEANS
RATHER THAN MASTER:
THE CRISIS OF DEVELOPMENT
AND THE NEW-OLD ROLE OF
GOVERNMENT
Robert Wade
Leontief Lecture, Tufts University
November 17, 2008
Figure 3: Income per head as percentage of North
45
Per cent of income per head of North
40
35
Latin America
30
25
20
The South
15
Asia
Africa
10
China
5
0
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2001
GDP per capita as share of GDP per capita in Advanced
Countries, MEPP
Chart 1: World inequality (low =
less equal)
12%
10%
8%
6%
4%
2%
Third World excluding China
Third World including China
0%
1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008
MEPP (Monetarily Effective Purchasing Power) = current prices at market exchange rates
Source: International Monetary Fund (World Economic Outlook), World Bank (world
D
l
t I di t
)
GDP per capita as share of GDP per capita in Advanced
Countries, PPP
Chart 2: World inequality using
PPP (low = less equal)
20%
Third World excluding China
Third World including China
18%
16%
14%
12%
10%
1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008
PPP=Purchasing Power Parity
Source: International Comparison Project (ICP)
STATE MOBILITY MATRIX, 1978-2000 (rounded %)
Increase
No change
Decrease
Rich
--
80
20
Contender
15
5
80
Third World
10
30
65
Fourth World
5
95
--
GDP Growth Rate 1980-90
12
10
2
8
6
4
2
3
0
-2
1
-4
5
10
15
20
25
30
35
40
45
50
Property Rights Index 1984
Low Growth Developing Countries (1)
High Growth Developing Countries (2)
Advanced Countries (3)
55
Share of top 0.01%, 0.1%, 1% in
household income, US, 1913-2004
Dominance of right-wing media in
UK
• Classify UK (paid for) newspapers as
right-wing and not right-wing. (Financial
Times = not right-wing.)
• The readership ratio is 76:24.
• Similar in US?