Inequality: Dormant Threat to Stability in the BRICS

Being perceived by the West as a powerful yet heterogeneous “deconstructing power” and an external threat to western supremacy in global governance, the BRICS members are facing a serious “dormant threat” coming from within – economic inequalities. By asking whether inequality, like “bad cholesterol”, may silently kill the sustainability of growth by restraining access to education, health or knowledge, this article provides an assessment of the relation between the increasing inequality and rising political instability in BRICS countries. The first section of this article investigates various approaches to income and wealth inequalities, and provides a literature overview. The second section accentuates the deconstructing features of inequality in BRICS countries, which are encapsulated as the “3Ws”: weak markets, weak governments, and weak institutions. The third section looks into the inequality dynamics in BRICS members showcasing that the huge income disparities in BRICS (GINI > 0.40), combined with high food and house prices, not only fuel opportunity inequalities and growing social anger, but also lead to political instability and setbacks on the path to balanced growth. The final part presents the main conclusions.

NIERÓWNOŚĆ: UŚPIONE ZAGROŻENIE DLA STABILNOŚCI W BRICS

Postrzegani przez Zachód jako potężna a jednocześnie heterogeniczna „potęga dekonstrukcyjna” i zewnętrzne zagrożenie dla zachodniej supremacji w globalnym zarządzaniu, uczestnicy BRICS stoją w obliczu poważnego wewnętrznego „uśpionego zagrożenia” – nierówności ekonomicznych. Pytając, czy nierówność, podobnie jak „zły cholesterol”, może po cichu „zabić” trwałość wzrostu poprzez ograniczenie dostępu do edukacji, zdrowia lub wiedzy, zanalizowano związek między rosnącymi nierównościami a wzrastającą niestabilnością polityczną w państwach BRICS. W pierwszej części artykułu prześledzono różne podejścia do nierówności dochodowych oraz dokonano przeglądu literatury. W drugiej części zaakcentowano dekonstrukcyjne cechy nierówności w państwach BRICS, które ujęto w formule „3S”: słabe rynki, słabe rządy i słabe instytucje. W trzeciej części zanalizowano dynamikę nierówności wśród członków BRICS, dowodząc, że ogromne dysproporcje w dochodach BRICS (GINI > 0,40), w połączeniu z wysokimi cenami żywności i mieszkań, nie tylko powodują nierówności w zakresie możliwości awansu społecznego i napędzają gniew społeczny, ale także prowadzą do niestabilności politycznej i stanowią przeszkody na drodze do zrównoważonego wzrostu. W końcowej części przedstawiono wnioski i uogólnienia.

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