It then focuses on the more recent trade-inequality debate, which has brought to the fore a number of new' facets of the distributional effects of technology and trade globalization. Section C discusses the channels through which financial globalization has affected income distribution over and above technology and trade globalization. About a decade later, this debate has been revived, mainly for two reasons: the first is the recent increase in income inequality in many countries around the world, and the second arises from theoretical advances (discussed, for example, in Harrison, McLaren and McMillan, 2011) and the availability of more comprehensive data that allow a better understanding of the relationship between changes in income distribution, on the one hand, and technological developments and countries’ increasing trade integration on the other. The theoretical advances allow a broadening of the analysis so as to assess the joint influences of trade, technology and foreign direct investment (FDI) on income distribution. These policies are analysed in chapter VI of this Report.