The global inequality boomerang by Ravi Kanbur, Eduardo Ortiz-Juarez, Andy Sumner published by VOXEU (5/2022).
Global inequality has fallen over the last three decades, despite a rise in inequality within some large countries. This column argues that the decline in global inequality will reverse in the coming years, due to a turnaround in the between-country component of inequality. This inequality ‘boomerang’ is forecast to happen near end-2020s or early-2030s, although an inequal recovery from the Covid crisis could hasten the reversal. Thus, the ‘sunshine’ narrative of declining global inequality could prove temporary, and a boomerang would require new policies to combat inequality in the future.
