Beginning a few decades ago, world politics started to experience a dramatic transformation. From the early 1970s to the first decade of this century, the number of electoral democracies increased from about 35 to more than 110. Over the same period, the world’s output of goods and services quadrupled, and growth extended to virtually every region of the world. The proportion of people living in extreme poverty plummeted, dropping from 42 percent of the global population in 1993 to 18 percent in 2008.
But not everyone benefited from these changes. In many countries, and particularly in developed democracies, economic inequality increased dramatically, as the benefits of growth flowed primarily to the wealthy and well-educated. The increasing volume of goods, money, and people moving from one place to another brought disruptive changes. In developing countries, villagers who previously had no electricity suddenly found themselves living in large cities, watching TV, and connecting to the Internet on their mobile phones. Huge new middle classes arose in China and India—but the work they did replaced the work that had been done by older middle classes in the developed world. Manufacturing moved steadily from the United States and Europe to East Asia and other regions with low labor costs. At the same time, men were being displaced by women in a labor market increasingly dominated by service industries, and low-skilled workers found themselves replaced by smart machines.
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