This is a prepublication version of an analysis of stagnation and divergence in the world economy which appeared in Pettifor, A (2003) Real World Economic Outlook, pp152-159. Basingstoke: Palgrave MacMillan, pp152-164. A fuller version of this same paper was presented to the British International Studies Association conference in September 2002.
It uses data published by the IMF’s World Economic Outlook team to establish that world GDP per head, calculated in constant 1995 dollars at current market exchange, remained static between 1980 and 2002 and declined absolutely between 1988 and 2002.
Over the same period – ‘globalisation’, understood as the period of intense financial deregulation and the creation of a world market in capital – this article uses the same figures to prove that the income gap between the North and the South has doubled.