Editor’s Note: The article first appeared in
, No. 101, July 2011, published by the East-West Center.
During the closing decades of the twentieth century, much of the world witnessed a substantial increase in economic and social inequalities. Following a period of “growth with equality” that featured economic growth and social redistribution in East Asian countries shortly after World War II, a new era of “growth with inequality” has been ushered in. This leads to a divided society, threatens democratic institutions and suffocates economic growth. Looking forward to the next half century, will East Asia, a major area of economic growth of the 21st century, become increasingly unequal economically and socially?
The experience of China, a country that has seen a period of both spectacular economic growth and rapid income inequality increase, suggests that the state can serve both as an inequality creator and an equality enforcer. As equitable distribution of benefits of economic growth requires forces beyond the market alone, national policies are required to address the causes of rising inequality and create opportunities that will have beneficial long-term effects.
“The U.S. nuclear umbrella is a principal reason why North Korea does not use its conventional forces to inflict a major strike on South Korea. That in turn reduces any South Korean temptation to get its own nuclear deterrent. But no first use would mean that the U.S. would not use nuclear weapons to counter a North Korean conventional attack, and so removes them as a reason — perhaps the principal reason — for the North to show restraint.”