An insight into how we are ruled now
Writing in The Observer Mark Malloch-Brown tells us that:
However, we are where we are and……
This is true, obviously. Any plan to do anything should start where we are, consider where we desire to be and try to move us from that initial point to the goal. This is not difficult logic.
Malloch-Brown also tells us that:
What they missed was that the first G20 held in Africa had commissioned an important report on inequality. Its alarming but unsurprising message: inequality is surging.
Therefore we must change that international economic order so that etc…….
From that G20 report on inequality:
Box: Some key facts on inequality
• Nationally, 83% of countries have high income inequality (using the World Bank definition of ‘high inequality’ as a Gini coefficient above 0.4). These countries account for 90% of the world’s population.
• Globally, income inequality between all individuals in the world has fallen since 2000, due largely to economic development in China. However, it remains very high, at a Gini coefficient of 0.61.
So, the actual finding - recall, from the report being used as the proof of the initial contention - is that inequality is falling. It’s not entirely China either - poor countries are growing faster than rich countries, inequality is falling. Even if it were mainly China then we can still draw a lesson - stop being Maoist idiots, adopt a goodly chunk of capitalist and market and stand back in wonder as the place gets rich.
But the particular point we want to emphasise here is that difference between what it is said the report says and what the report does say. Or, to put this another way.
Man with a plan to structure the global economy says that we must wholly change that global economy because inequality is soaring. As it happens, the current structure of the global economy is reducing inequality. What now plan man?
We think this is a useful insight to how economic policy is suggested at that international level. Evidence? What’s that?
Tim Worstall