Growth, distributive justice and social policy

After more than a decade of economic reform and structural adjustment in the developing countries, there is increased recognition that economic growth and social equity must go hand in hand. This article starts by asking what is meant by “social equity". It notes that reduction of poverty and improvement of income distribution are two perfectly complementary policy objectives, since less inequality can help both to reduce poverty and to speed up economic growth. It reviews the main elements of the modem theory of distributive justice, covering the ethical and economic dimensions of inequality.