| Taking into account Kuznet’s hypothesis, considers the general relationship between the evolution and extension of market systems and the incidence of poverty and economic inequality. It suggests that a re-evaluation of the Kuznet’s curve is needed because income inequality has been rising in many countries, with growing economic liberalisation, expansion of globalisation and greater reliance on markets. Nevertheless, societies that experience a rapid transition from traditional, centrally controlled, or social welfare economic systems to market-based ones often experience a substantial rise in their incidence of poverty and income inequality, at least initially. Some of the reasons for this and the processes mentioned are outlined. The recent upward... |
