Income divergence and inequality Income divergence refers to the imbalance between the distributions of the total wealth between the total numbers of individuals in an economic system. It is measured by expressing the percentage of income against the percentage of the population. Globalization, on the other hand, refers to the running of operations, in this case, business operations on an international scale. The goal is to discuss and show that the mainstream view of globalization is myopic and what it lacks based on the 2003 work of Milanovic Branko. THE PREVALENT VIEW It is clear that globalization has a direct effect on income distribution. Since, the dawn of globalization, between the late 19th Century and early 20th century, the economic …show more content…
There was immigration by people from densely populated, resource-poor countries to sparsely populated resource-rich offshoots of Western Europe such as Australia. Railways and telegraphs made long-distance travel and communication possible. People could look for greener pastures in these new locations, and for the most part, some of them did find greener pastures. However, this came at a price, mostly for those indigenous to these offshoot countries. Bias by economists in favor of “peaceful” models of globalization turn a blind eye to those due to plunder and conquests(Milanovic 669). They choose to put their heads in the sand for cases such as slavery and colonization. Especially so for the effect, these had on the economy of the indigenous occupants of these countries. THE 19TH CENTURY DIVERGENCE For instance, in an article written on the 19th-century globalization by Harvard’s Jeffery Williamson and University of California’s Peter Lindert, does not mention anything to do with colonization or slavery. This is quite interesting since slavery and colonization were major facets of globalization in the 19th century. This silence on the malignant side of globalization played a role in the shaping of the mainstream view of globalization which favors the side of benign