CONCLUDING REMARKS

There has been a remarkable improvement in the availability of information for distrib­utive analysis in the last decades due to increasing efforts by researchers, national govern­ments, and international organizations.

From the data available, some general facts emerge. High poverty and inequality are pervasive characteristics of the developing world, but are not immutable features of these economies. The evidence suggests a robust decline in the levels of absolute income pov­erty in the developing world, driven mainly by East Asia in the 1980s and 1990s and gen­eralized to the rest of the developing countries in the 2000s. Income poverty has been reduced in most countries and in the world as whole, making the achievement of the first MDG possible. Despite these positive results, there are reasons for concern. The task of fighting poverty continues to be very challenging: Around 1.2 billion people survive with less than $1.25 a day, an extremely low standard. Also, most of the people who suc­ceeded in jumping the $1.25 line in the last decades are still poor by the standards of middle-income developing countries and remain highly vulnerable if economic condi­tions worsen. Moreover, due to economic growth, concerns about relative poverty may be increasingly important, and the evidence in that sense is less optimistic.

The evidence on relative income inequality suggests that on average the developing countries are somewhat more unequal than three decades ago. The patterns have been different by period and region. Inequality rose in the late 1980s and in the 1990s; the changes were larger in Eastern Europe and Central Asia, probably as a result of the tran­sition from a central-planned to a more market-oriented economy; in East Asia, likely as a consequence of the economic takeoff; and in Latin America probably as the result of recurrent macroeconomic crises and some structural transformations. Distributive changes became more equalizing in the 2000s, but the changes were rather moderate and with considerable heterogeneity across countries. In fact, in this decade of widespread social improvement around a third of the countries did not experience falling inequality levels. Reducing inequality certainly remains a top concern in the developing world.

ACKNOWLEDGMENT

F. A. is with Nuffield College and INET-Oxford, Paris School ofEconomics and CONICET; L. G. is with Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS), Facultad de Ciencias Econcomicas, Universidad Nacional de La Plata, and CONICET. This chapter was completed while L. G. was visiting professor at the University of British Columbia. We are grateful to participants to the conference “Recent Advances in the Economics of Income Distribution” (Paris), the AAEP Meetings (Rosario), Thomas Piketty, and especially Anthony Atkinson and Francois Bourguignon, for valuable comments and suggestions. We are also grateful to DavidJaume, Dario Tortarolo, Carolina Lopez, Julian Amendolag- gine, Santiago Garganta, Florencia Pinto, Pablo Gluzmann, Leopoldo Tornarolli, Javier Alejo, Juan Zoloa, and Carolina Garcia Domench (all at CEDLAS) for outstanding research assistance. We alone are responsible for any errors. Financial support from the ESRC-DFID joint fund and INET is gratefully acknowledged.

APPENDIX

Figure A.1 Mapofpoverty in the developing world, circa 2010. Note: Poverty computed over the distribution of consumption/income per capita with the PPP-adjusted $2-a-day line. Source: Own calculations based on PovcalNet (2013).

Eastern Europe and Central Asia

Latin America and the Caribbean

Continued

Table A.1 List of developing countries by region and population, 2010—cont'd

Countries Pop. Data

Middle East and North Africa

South Asia

Sub-Saharan Africa

Note: An “X” in the Data column marks that the country has distributive information in PovcalNet. Source: Population (in millions) is taken from the United Nations Demographic Yearbook.

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