Economic growth vs income distribution: a note
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1971-10Author(s)/Corporate Author (s)
Saigal, J.c.;United Nations. Economic Commission for Africa. African Institute for Economic Development and Planning(IDEP);
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The last two decades of economic development in countries of under-developed world shows that very uneven distribution of benefits of economic growth has taken place in these countries. The gap between the rich and the poor has become wider. In fact, population below poverty line, which constitutes in many under-developed countries more than fifty per cent of the total population, has hardly benefited from the increase in national product. Such a lop sided development has led to frustration and sharp increase in socio-political instability in many of these countries. One then asks the question why such a lop-sided development has taken place in under developed countries? Is such a pattern of development inevitable during the early stage of transition to self-sustaining growth? according to the growth theories there is an inherent conflict between growth objective and the objective of bringing about a more equal distribution of income. It is assorted that high growth rate and increase in income inequalities go hand in hand. This hypothesis has received statistical support from the experience of Western countries during their early stages of development. To what extent this hypothesis has validity in the context of underdeveloped economies of today will answer second question raised above.
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“Saigal, J.c.; United Nations. Economic Commission for Africa. African Institute for Economic Development and Planning(IDEP) (1971-10). Economic growth vs income distribution: a note. Dakar. © UN. IDEP. https://hdl.handle.net/10855/42490”Collections
- Economic Development [8013]
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