World inequality, Latin America catching up, and the asymmetries in power

Abstract

Abstract Despite the increase of material wealth through time, the majority of countries throughout the world have been unable to catch up consistently with the core countries. This article shows that between-country inequality has surged, and that wealthy countries can perform better than poor countries in achieving growth in the long term. Also, it demonstrates that Latin America countries have not caught up to the leading countries, and that between the rich and Latin countries there remains “an unbridgeable gulf,” using Harrod and Hirch’s words. Finally, using real and financial variables, this article shows that some Latin American countries have been subjected to exclusion and exploitation and cannot apply the same developmental policies as the richest countries.