International organisations must take the lead on reducing income inequality

Is income inequality always bad for society? Francesc Trillas writes on the impact of inequality on democracy. Taking issue with the perspectives of economists such as Gregory Mankiw, he argues that a growing income gap between the wealthy and the rest of society can pose a fundamental challenge for a country’s political system. He notes that the effects of globalisation, combined with the flawed incentives contained within national politics, have reduced the ability of nation states to tackle inequality. As a result only the development of new international institutions can solve the problem.