International Policy Rules and Inequality : Implications for Global Economic Governance

302 Pages·2019·2.632 MB·English

by  José Antonio Ocampo

INTERNATIONAL POLICY RULES
AND INEQUALITY
Initiative for Policy Dialogue at Columbia:
Challenges in Development and Globalization
INITIATIVE FOR POLICY
DIALOGUE AT COLUMBIA:
CHALLENGES IN DEVELOPMENT
AND GLOBALIZATION
JOSÉ ANTONIO OCAMPO AND JOSEPH E. STIGLITZ,
SERIES EDITORS
Escaping the Resource Curse, Macartan Humphreys,
Jeffrey D. Sachs, and Joseph E. Stiglitz, eds.
The Right to Know, Ann Florini, ed.
Privatization: Successes and Failures, Gérard Roland, ed.
Growth and Policy in Developing Countries: A Structuralist Approach,
José Antonio Ocampo, Codrina Rada, and Lance Taylor
Taxation in Developing Countries, Roger Gordon, ed.
Reforming the International Financial System for Development,
Jomo Kwame Sundaram, ed.
Development Cooperation in Times of Crisis,
José Antonio Ocampo and José Antonio Alonso
New Perspectives on International Migration and Development,
Jeronimo Cortina and Enrique Ochoa-Reza, eds.
Industrial Policy and Economic Transformation in Africa,
Akbar Noman and Joseph E. Stiglitz, eds.
Macroeconomics and Development: Roberto Frenkel and the
Economics of Latin America, Mario Damill, Martín Rapetti,
and Guillermo Rozenwurcel, eds.
Too Little, Too Late: The Quest to Resolve Sovereign Debt Crises,
Martin Guzman, José Antonio Ocampo,
and Josepth E. Stiglitz, eds.
Efficiency, Finance, and Varieties of Industrial Policy:
Guiding Resources, Learning, and Technology for Sustained Growth,
Akbar Noman and Joseph Stiglitz, eds.
The Welfare State Revisited, José Antonio Ocampo
and Joseph E. Stiglitz, eds.
INTERNATIONAL
POLICY RULES AND
INEQUALITY
IMPLICATIONS FOR GLOBAL
ECONOMIC GOVERNANCE
EDITED BY
José Antonio Ocampo
Columbia University Press
New York
Columbia University Press
Publishers Since 1893
New York Chichester, West Sussex
cup.columbia.edu
Copyright © 2019 Columbia University Press
All rights reserved
Library of Congress Cataloging-in-Publication Data
Names: Ocampo, Jose Antonio, editor.
Title: International policy rules and inequality :
implications for global economic governance /
edited by Jose Antonio Ocampo.
Description: New York : Columbia University Press, [2018] |
Includes bibliographical references and index.
Identifiers: LCCN 2018040789 (print) |
LCCN 2018042142 (e-book) | ISBN 9780231549141 (e-book) |
ISBN 9780231190848 (hardback : alk. paper)
Subjects: LCSH: Equality. | Income distribution. | Economic policy—
International cooperation. | International economic relations. |
International law.
Classification: LCC HM821 (e-book) |
LCC HM821 .I68 2018 (print) |
DDC 305—dc23
LC record available at https://lccn.loc.gov/2018040789
Columbia University Press books are printed on permanent
and durable acid-free paper.
Printed in the United States of America
Cover image: Broken Ways, © Paulo Cesar Acosta Castaño
Cover design: Elliott S. Cairns
INITIATIVE FOR POLICY
DIALOGUE AT COLUMBIA:
CHALLENGES IN DEVELOPMENT
AND GLOBALIZATION
JOSÉ ANTONIO OCAMPO AND JOSEPH E. STIGLITZ,
SERIES EDITORS
The Initiative for Policy Dialogue (IPD) at Columbia University brings
together academics, policy makers, and practitioners from developed and
developing countries to address the most pressing issues in economic
policy today. IPD is an important part of Columbia’s broad program
on development and globalization. The Initiative for Policy Dialogue at
Columbia: Challenges in Development and Globalization presents the lat-
est academic thinking on a wide range of development topics and lays out
alternative policy options and trade-offs. Written in a language accessible
to policy makers and students alike, this series is unique in that it both
shapes the academic research agenda and furthers the economic policy
debate, facilitating a more democratic discussion of development policies.
This book highlights trends in two research and policy issues that have
been at the center of global debates in recent years. The first trend is the ris-
ing national income and wealth inequalities that have taken place in recent
decades. The second is the large historical inequalities in living standards
between developed and developing countries. The coincidence of these ad-
verse distributive trends with the globalization process currently under way
raises obvious questions about the extent to which the rules—or, equally
important, the lack of them—that formally or informally govern the glob-
al economy are basic determinants of world inequality.
Chapter authors look at this interaction both from a general perspec-
tive and through a deep look at four types of rules: those related to foreign
investment, cross-border financial flows, intellectual property rights, and
lack of rules regarding taxation. The authors recommend improvements to
global economic governance that would provide countries with the free-
dom to adopt national policies they deem necessary to avoid negative ef-
fects on domestic inequality and would strengthen the power of global
institutions in their efforts to reduce the negative effects on both interna-
tional and national inequalities.

CONTENTS
1. International Policy Rules and Inequality:
Implications for Global Economic Governance 1
José Antonio Ocampo
2. National Inequalities and the Political Economy of Global
Financial Reform 28
Eric Helleiner
3. Are New Economic Policy Rules Desirable to Mitigate
Rising National Inequalities? 55
Jonathan D. Ostry, Prakash Loungani, and
Davide Furceri
4. The Impact of Foreign Investor Protections on
Domestic Inequality 82
Manuel F. Montes
5. Investment Treaties, Investor-State Dispute Settlement,
and Inequality: How International Rules and Institutions
Can Exacerbate Domestic Disparities 112
Lise Johnson and Lisa Sachs
6. Capital Openness and Income Inequality: Smooth Sailing
or Troubled Waters? 143
Kevin P. Gallagher, Guillermo Lagarda, and
Jennifer Linares
7. Intellectual Property: A Regulatory Constraint to
Redress Inequalities 179
Carlos M. Correa
viii CONTENTS
8. The Frustrated TPP and New Challenges for the Global
Governance of Trade and Investment 212
Osvaldo Rosales
9. The Effects of International Tax Competition on
National Income Distribution 243
Valpy FitzGerald and Erika Dayle Siu
Contributors 273
Index 277
INTERNATIONAL POLICY RULES
AND INEQUALITY