Odd Lots · Monday, July 27, 2026
Branko Milanovic emphasizes that sustained high growth rates in developing countries, particularly in Africa, are crucial for reducing global income inequality. He explains that while China's rapid growth has increased its income level closer to that of developed nations, it no longer significantly lowers global inequality. Milanovic points to Africa's large population and consistent growth as the primary drivers for achieving a reduction in global inequality in the 21st century.
“When it comes to global income inequality, and I've been working on that, as you know for many years. The irononic stuff about that is when if you want to reduce global income inequality between individuals, you really have to worry about growth because the best way to reduce, and particularly the only way at the global level, is high growth rates of poor countries.”
“And that's why Africa in that point of view, and that's what we were selling to Chinese students when they were surprised that Chinese no longer I say to them, the key point now is India's growth, and especially Africa, because Africa, you have five large countries. One hundred million people are actually two hundred and twenties is Nigeria, but other is about one hundred million. So we are talking there about these five or six countries with the one billion people and growing the only part of the world which is going a two percent annually in terms of population.”
“So that really is going to define twenty first century. Are we going to have reduction in global inequality or not? If Africa doesn't catch up, we will have another increase in global inequality.”