Education and the roles of the State and the market in poverty eradication

In examining the respective roles of the State and the market in eradicating poverty, it is first of all important to expand the scope of the enquiry to encompass not only poverty but also income inequality and economic growth. Much of the modern experience of development has shown that, save in a pure Malthusian situation which may sometimes occur but which is generally rare, poverty is closely related to income inequality, and both are closely connected with growth. In attempts to find effective ways to combat poverty, attention must therefore be cast widely enough to examine the effect of income inequality and growth on poverty. In turn, reduction and eradication of poverty can have an important impact on growth and inequality.

Related Subject(s): Economic and Social Development