The World Explored, the World Suffered Education Issue Nr. 22 September 2019 - Page 14

interdependence of national institutions. The major problem he notes is that the development of international institutions is lagging behind what the International economy requires. As a consequence he disagrees with the previous speaker and argues that there is continuing divergence between the economic growth of industrialised and developing countries especially in those developing countries outside of Asia which is part of a trend of longer term increase in International Inequality. He does, however note a statistic that might be a counterargument against his position: "Between 2004 and 2007 there was for the first time a faster rate of growth in the developing countries than in the developed countries. Is this a trend?We do not yet know, for example if the economies of China and India can function as locomotives and pull the growth of the world economy forward. According to a recent UN University study, 88% of the world lives in countries where inequality is increasing" Ocampo points out in relation to this research that the amount of social spending on health, education and social protection is highly correlated with the level of income of the country concerned. Ocampo then shows an overhead relating to three inequalities. In the quote below is both the information contained on the overhead plus the verbal commentary on it: "Inequalities of Global order: Three asymmetries. 1. financial and macroeconomic: The available finance in the International Economic system flows from the industrialised countries and this is what constitutes the international currencies we trade in, the dollar, pound,yen etc. This in its turn produces market segmentation , i.e. a market of good and bad borrowers in which the developing countries are regarded as risky borrowers who as a consequence have to pay more for the money they borrow. This cost prevents them from being able to manage the cyclical downturns in the market(flow of capital followed by dry weather). This is a characteristic feature of the third wave of globalisation and is a cause of the divergence of economies 2.Technological and Productive inequalities: Only a few countries generate new technologies and they are very protective of their discoveries. This prevents a smooth process of distribution: diffusion is a very slow process 3. Limited labour mobility. There is discrimination in the system against unskilled labour mobility and an asymmetrical flow of labour toward the industrialised countries." Ocampo elaborates upon point one by pointing out that there are no instruments to counter financial swings in the market insofar as the non OECD countries are concerned and while the expectation is that water and funds should trickle