{"id":148999,"date":"2014-09-17T17:14:03","date_gmt":"2014-09-17T16:14:03","guid":{"rendered":"https:\/\/www.um.edu.mo\/sem-categoria\/2014\/09\/29618-pt_pt\/"},"modified":"2020-11-26T21:04:32","modified_gmt":"2020-11-26T13:04:32","slug":"29618","status":"publish","type":"post","link":"https:\/\/www.um.edu.mo\/pt-pt\/news-and-press-releases\/campus-news\/detail\/29618\/","title":{"rendered":"The Door of Opportunity\u2013For Whom Does It Open? Nobel Laureate Joseph E. Stiglitz on the Price of Inequality"},"content":{"rendered":"<p>Source: <a href=\"http:\/\/www.umac.mo\/umagazine\/issue10\/\"><i style=\"mso-bidi-font-style:\nnormal\">umagazine<\/i><\/a><\/p>\n\n<p>\u201cIt was the best of times. It was the worst of times.\u201d<\/p>\n\n<p>Free trade and globalisation help to promote economic growth\nand create wealth, but at the same time they have contributed to the widening\ngap between the rich and the poor and have bred inequalities that permeate\nevery aspect of our society. In his talk at the University of Macau (UM) in\nMarch 2014, Prof. Joseph E. Stiglitz, Nobel laureate in economics, discussed\nthe numerous inequalities lurking beneath the surface of a prosperous society,\nespecially inequalities in opportunity. In an age where we are encouraged to\nseize every opportunity to make our dreams come true, Prof. Stiglitz\u2019s talk\nleft us with a thought-provoking question\u2014the door of opportunity, for whom\ndoes it open?<\/p>\n\n<p>Prof. Stiglitz is no stranger to UM. He gave a lecture at UM\nin 2002, which was his first public talk in Asia after receiving the Nobel\nPrize in Economic Sciences. His second lecture at UM was just as popular as the\nfirst one. In the talk, entitled \u201cThe Price of Inequality\u201d, Prof. Stiglitz laid\nbare the numerous inequalities that exist in today\u2019s globalised world and\ndiscussed the prices we are paying for them.<\/p>\n\n<p>Prof. Stiglitz opened his talk with an observation of the\ndramatic changes in the Pearl River Delta region in the last 25 years since his\nfirst visit to Macao in the 1990s. \u201cWhat has happened in the Pearl River Delta\nregion in the last 25 years has been really impressive,\u201d Prof. Stiglitz said.\n\u201cVery dramatic changes in a very short period of time. In much of the world,\nthere are other dramatic changes that have gone on, and one of the dramatic\nchanges is the increase in inequality in many countries around the world.\u201d<\/p>\n\n<p>&nbsp;<\/p>\n\n<p>Rich Richer, Poor Poorer <\/p>\n\n<p>How exactly has inequality increased? Prof. Stiglitz cited\nhis home country\u2014the United States\u2014as an example. \u201cIn the United States, 95 per\ncent of the increase in income since the so-called end of the recession went to\nthe upper 1 per cent,\u201d Prof. Stiglitz said. \u201cThat meant the bottom 99 per cent\nhave not seen a recovery.\u201d Equally dramatic are data on what is happening to\nincome and wealth in the middle. \u201cMedian wealth fell by 40 per cent. Poverty is\nup. For full-time male workers, it\u2019s much worse; the median income of males\ntoday in America is lower than it was 40 years ago,\u201d Prof. Stiglitz said. <\/p>\n\n<p>Free market advocates believe that providing tax breaks and\nother incentives to businesses and wealthy people will benefit poorer members\nof society by improving the economy as a whole. But Prof. Stiglitz pointed out\nthat this so-called \u201ctrickle-down economics\u201d will only serve to widen the gap\nbetween the rich and the poor and make those at the bottom suffer various\ninequalities, from income and wealth to health care, exposure to environmental\nhazards and access to justice. \u201cThings have gotten a lot worse in the last few\nyears, particularly in the aftermath of the global financial crisis of 2008,\u201d\nsaid Prof. Stiglitz. \u201cThis is particularly true in the developed countries.\nThose at the bottom have been hurt in different ways.\u201d<\/p>\n\n<p>And the problems are not unique to developed countries.\nAccording to Prof. Stiglitz, China is not immune to these trends. \u201cWhat China\nhas done in the last 35 years is not only to grow more than almost any other\ncountry, but it\u2019s also been able to grow its inequality more,\u201d Prof. Stiglitz\nsaid. \u201cBut China is not the emerging market with the highest level of\ninequality. There are other countries in the developing world that have worse\ninequality. But some of them, like Brazil, invested a lot in education, health\ncare, food, and nutrition for young people, and in a relatively short time,\nBrazil has succeed in reducing the degree of inequality.\u201d<\/p>\n\n<p>As tempting as it is to blame inequality on economic forces,\neconomic forces are not the only culprit. \u201cThe economic forces that are at play\nare the same on both sides of the Atlantic, underlying economic forces basically\nare global in nature,\u201d Prof. Stiglitz explained. \u201cThe outcomes, though, differ\nvery markedly from country to country, and that tells us that it\u2019s not just\neconomics that\u2019s driving what is going on in inequality; it\u2019s really about\npolicies, and policies themselves are determined by politics. So when we come\nto talk about and try to understand inequality, we can\u2019t ignore the central\nrole of policies and politics.\u201d <\/p>\n\n<p>&nbsp;<\/p>\n\n<p>Inequality of Opportunity<\/p>\n\n<p>Another inequality, which perhaps merits more concern than\ninequality in income and wealth, is inequality of opportunity. It is very\ndifficult, noted Prof. Stiglitz, for people at the bottom to make it to the\ntop, and that is a good example of inequality of opportunity. Prof. Stiglitz\nsaid that statistics show that the income and education of a young American and\nthe income and education of his parents are closely linked. In other words,\nwhether a child in the United States can succeed depends to a large extent on\nwhether he or she has successful parents. \u201cSo sometimes I say jokingly, there\nis one critical decision that each young child should make, and that is\nchoosing the right parents,\u201d said Prof. Stiglitz. \u201cIf you make that decision\nwrong, you might as well give up.\u201d<\/p>\n\n<p>Prof. Stiglitz observed that some students in the United\nStates, whose parents are not very well-off, pay for college expenses with\nstudent loans, and even after graduation these students sometimes cannot afford\nto work unpaid internships, and end up working as waiters. <\/p>\n\n<p>These all affect the young people\u2019s opportunity to move\nupward, and have caused many to become disillusioned with the \u201cAmerican Dream\u201d.\n\u201cResearch over the last few years shows that equality of outcomes and equality\nof opportunities seem to be very highly correlated,\u201d said Prof. Stiglitz. \u201cSocieties\nwith a very high level of inequality of outcomes in income and wealth have very\nhigh inequalities of opportunity.\u201d<\/p>\n\n<p>&nbsp;<\/p>\n\n<p>Inequality in Higher Education<\/p>\n\n<p>There are many factors that contribute to inequality of\nopportunity, and one of them is inequality in education. Prof. Stiglitz\nbelieves that education has a profound effect on people\u2019s lives, and children\nwith better-off parents tend to have a better opportunity to go to college.\n\u201cOne of the major sources of inequality are differences in access to higher\neducation,\u201d Prof. Stiglitz said. <\/p>\n\n<p>While the internet has been very important in making\nknowledge accesssible, Prof. Stiglitz pointed out that many poor people around\nthe world, including those in remote rural areas of China, do not have access\nto the internet. <\/p>\n\n<p>So what can we do to provide relatively equal opportunities?\nProf. Stiglitz suggested that universities should provide scholarships, and\ngovernments should make public education available, to ensure that\ndisadvantaged groups also have equal access to quality education.<\/p>\n\n<p>Macao seems to do a relatively good job of providing\nscholarships and public education. The Macao SAR government provides free\neducation until the end of high school as well as subsidies for students. Local\nuniversities including UM also provide various kinds of scholarships to make\nsure that young people have equal opportunities to receive education. \u201cHaving\naccess to good education is really a privilege,\u201d said Prof. Stiglitz. \u201cIt\u2019s a\ngift that society and the government invested in young people\u2019s future.\nHopefully the students will return that investment.\u201d<\/p>\n\n<p>\u201cToo often, there is a focus on just increasing their own\nsense of well-being,\u201d said Prof Stiglitz. \u201cBut it\u2019s important for them to\ncontribute to the community, to realise that not everybody has had that same\nopportunity, and to make sure that those who have been disadvantaged can get a\nhelping hand.\u201d<\/p>\n\n<p><br\/><\/p><p>About Joseph E. Stiglitz<br\/>\nProf. Joseph E. Stiglitz is a Nobel laureate in economics and one of the most\ninfluential economists of our time. He is the former senior vice president and\nchief economist of the World Bank. Prof. Stiglitz has taught at several\nrenowned universities including Princeton University, Stanford University, and\nthe Massachusetts Institute of Technology. He is now University Professor at\nColumbia University. He has made major contributions to numerous areas of\neconomics, including macroeconomics and economics of the public sector. He is\nknown for his critical view of the management of globalisation and free-market\neconomists.<\/p>","protected":false},"excerpt":{"rendered":"<p>Source: umagazine \u201cIt was the best of times. It was the worst of times.\u201d Free trade and globalisation help to promote economic growth and create wealth, but at the same&#8230;<\/p>\n","protected":false},"author":1,"featured_media":117618,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[61],"tags":[],"class_list":["post-148999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-campus-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Door of Opportunity\u2013For Whom Does It Open? Nobel Laureate Joseph E. 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