Trade and Development Report 2012

Inclusive Policies for Sustainable Growth

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In the context of the ongoing fallout from the global financial crisis, income distribution is back to the centre of economic analysis and policies. This publication explores the linkages between income distribution, growth and development. It analyzes the evolution of income inequality over the last decades in different regions and groups of countries. It also examines the explanations given for the widespread rise of inequality. The report questions the thesis that rising inequality is a necessary condition for successful development. Based on a comprehensive theory of economic policy elaborated in former reports, this book argues that only inclusive development policies create the conditions for sustainable and rapid growth.

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Changes in globalization and technology and their impacts on national income inequality

The evidence presented in the preceding chapter suggests that a multitude of factors influence income distribution through their effects on various categories of income at different points in time and at different phases of a country’s economic development. The objective of this chapter is to examine the pressures that technological advances and globalization of trade and finance have exerted on the evolution of national income inequality over the past two decades.

English French, Spanish

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