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Inequality is bad for the poor
 
Author:Ravallion, Martin; Collection Title:Policy, Research working paper ; no. WPS 3677
Country:World; Date Stored:2005/08/04
Document Date:2005/08/01Document Type:Policy Research Working Paper
Language:EnglishRegion:The World Region
Report Number:WPS3677Volume No:1 of 1

Summary: It has been argued that inequality should be of little concern in poor countries on the grounds that (1) absolute poverty in terms of consumption (or income) is the overriding issue in poor countries, and (2) the only thing that really matters to reducing absolute income poverty is the rate of economic growth. The author takes (1) as given but questions (2). He argues that there are a number of ways in which the extent of inequality in a society, and how it evolves over time, influences the extent of poverty today and the prospects for rapid poverty reduction in the future.

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