Here's bad news for those who oppose global free trade: Not only did the world-wide trend toward greater economic liberty hold steady over the past year, but the incomes of poor individuals across the globe are rising as result. The world isn't only growing richer. The gap between the per-capita income of have-not populations and that of the developed world is narrowing.
In a piece titled "Global Inequality Fades as the Global Economy Grows," Columbia University professor of economics Xavier Sala-i-Martin destroys the myth that the income gap is widening. While it is true that some countries are being left behind, when population weights are factored into the equation, the evidence shows that "individual income inequality declined substantially during the past two decades. The main reason is that incomes of some of the world's poorest and most populated countries (most notably China and India, but also many other countries in Asia) converged rapidly with the incomes of OECD citizens."
Read it here.
I blame Bush.