The Global South after the Crisis

The Global South after the Crisis

Growth, Inequality and Development in the Aftermath of the Great Recession

Edited by Hasan Cömert and Rex A. McKenzie

This volume is split into two accessible sections. The first part concentrates on the impact of the crisis on growth, inequality, policy responses and policy shifts in key areas such as central banking. The second part comprises individual country case studies and includes an exploration of the vulnerabilities related to the integration of developing economies into the world economy. The effect of the crisis on trade, and the ways in which some developing countries have entered into a prolonged period of stagnant growth following the global crisis are all considered.

Chapter 2: A tale of two worlds? Income distribution and the global crisis: observations from the North/South nexus

Serdal Bahçe and Ahmet Haşim Köse

Subjects: economics and finance, development economics, post-keynesian economics

Abstract

This study has an objective of providing evidence for the fact the last global capitalist crisis proceeded very unevenly and most of the countries in the Global South were not affected to the same extent as the developed capitalist world. Moreover, the trend of a decreasing share of developed capitalist countries in world income began prior to the crisis and continued during the crisis. The Global South’s wage share showed a steep incline during the crisis, and most of this incline was due to the contraction of output. Finally, this study shows that the advanced countries and the countries in the Global South exhibited different and antithetical trends during the crisis. In the South, most of the countries increased their output, albeit at a lower rate compared to the pre-crisis period, and income distribution improved for most of these countries. On the other hand, most of the developed countries experienced a decline in output and worsening income distribution. However, in essence, these two seemingly divergent paths were the results of the one totalizing tendency embedded in the permanent dynamics of global capitalism.

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