Economic growth depends on productivity improvements and the functioning of labour markets, but
well-functioning labour markets rest in turn on a sustained and stable path of economic growth. Moreover,
labour markets are the main channels through which inequalities may develop and persist. Globalisation,
with its promise of economic growth, is often perceived as having positive impacts on living standards,
although the gains are not automatic, and can even be negative for some segments of the labour market.
Some of the major areas of concern include the loss of jobs in industries that are becoming less
competitive, the bias of technological change against unskilled workers, and the growing segmentation of
the workforce, which is often accompanied by a race to the bottom in terms of labour standards and social
protection.
In the last two decades, Brazil, China, India and South Africa (the BCIS countries) have become very
important actors in the globalisation process, which is why, analysing the evolution of the drivers behind
that process and its impacts on people’s lives is crucial to a better understanding of these countries’
economies as well as of living standards in other emerging economies and worldwide.
For that purpose, this Chapter intends to give a comparative overview of the trends in economic
growth, labour market outcomes and income inequality since the early 1990s in Brazil, China, India and
South Africa, a period during which these countries initiated important reforms and attained a sustained
growth path, at least until the recent economic crisis.1
The Chapter is structured as follows: Section I start with an overview of the economic performance of
these economies in the context of the globalisation process and of their progressive integration into the
world economy. Section II starts by reviewing briefly the urbanisation and migration processes observed
since the early 1990s in the four countries and then focuses on the evolution of the employment and
unemployment outcomes in each country. The quality of the employment created during that period
matters as much as its quantity, and this section discusses the implications of working conditions for
different groups of the population and among different segments of the labour market. Section III analyses
the main trends in poverty and income inequality and points to the main drivers involved.