Global economy gathering strength

Encouraged by a highly expansionary economic policy, the global economy is enjoying a rapid upturn. Utilisation of capacity is high in many sectors, particularly in the growth centres of the USA and East Asia, where China leads the field. With inflationary risks on the increase, most countries are now shifting the focus of economic policy. Fiscal policy in particular can be expected to provide little in the way of further stimulus. In addition, there has been a turnaround in interest rates in many countries. Yet how quickly can the monetary reins be tightened without jeopardising growth or endangering price stability?     

New ways of achieving debt sustainability beyond the enhanced HIPC Initiative

In 1996 the Heavily Indebted Poor Countries (HIPC) Initiative was launched by the Bretton Woods institutions to reduce the external debt burden of low-income countries (LICs) to sustainable levels in a reasonably short period of time because debt constitutes an obstacle to sustainable economic growth and poverty reduction. In some HIPCs, however, debt sustainability has been in danger despite debt relief under the HIPC Initiative. Debt relief is a necessary but not a sufficient condition for development. It can do no more than play a catalytic role. The question, then, is how to achieve debt sustainability beyond the HIPC Initiative.     

Understanding Urban Inequality: A Model Based on Existing Theories and an Empirical Illustration

In the debate on urban inequality, Sassen’s theory on social polarization and Wilson’s theory on spatial mismatch have received much attention. Where Sassen highlights the decline of the middle classes, Wilson focuses on the upgrading of urban labour markets. In this article we argue that both theories may be valid, but that they have to be put in a more extended theoretical framework. Of central importance are national institutional arrangements, membership of different ethnic groups and networks, and place–specific characteristics rooted in local socio–economic histories. As a first empirical illustration of our model, we use data on the labour markets of Amsterdam and Rotterdam and show that different forms of inequality can be found both in economic sectors and within ethnic groups. The model we present could be used both to reinterébatpret existing data and as an analytical framework for the analysis of different forms of urban inequality. Dans le d& sur l’inégalitéurbaine, la théorie de la polarisation sociale de Sassen et celle de la disparité spatiale de Wilson ont retenu l’attention. Alors que Sassen souligne le déclin des classes moyennes, Wilson s’attache à la revalorisation des marchés du travail urbains. Cet article soutient que, si ces deux théories sont admissibles, elles doivent étre placées dans un cadre théorique plus large. En effet, sont essentielles les dispositions institutionnelles nationales, l’adhésion de différents réseaux et groupes ethniques, et les spécificités du lieu enracinées dans les histoires socio–économiques locales. Comme première illustration empirique de notre modèle, nous utilisons des données relatives aux marchés du travail d’Amsterdam et de Rotterdam pour montrer qu’il y existe différentes formes d’inégalitéà la fois dans les secteurs économiques et les groupes ethniques. Le modèle présenté pourrait servir à réinterpréter les données existantes et fournir un cadre à l’analyse des diverses formes d’inégalité urbaine.