Did globalisation stimulate increased inequality? A heterodox perspective

Global income inequality has been steadily rising since the 1980s. The sensational success of Thomas Piketty’s “Capital” shows that the topic resonates well with the global population. Many have argued that this has been the result of “globalisation” (Palma, 2006), another concept which is widely discussed but rarely defined. Most divide globalisation into economic globalisation, focusing on international trade and foreign direct investments, and political globalisation, focusing on institutional arrangements. This division hinges on the existence of a conceptual separation between political logic from economic policy, which seems untenable. The contour of the global economy, the structure of the global market, who can participate in it and how they can engage in exchange are seldom apolitical choices.