ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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The Class Question in the Growth and Equity Debate

A relationship of economic growth with income distribution and poverty reduction has been well researched. This article explores the role played by the balance of class power, the nature of the governance regime, and the policy framework to relook at this old debate and asks how the initial conditions and nature of growth affect wealth and distribution.

In developed countries, the levels of production and consumption are already environmentally unsustainable. Further growth in these countries can only come at enormous cost to the environment. A solution to major economic problems in these countries, such as poverty and unemployment, has to be found in the redistribution of income and wealth in favour of the poorer sections.

At the same time, the condition of most developing countries is far different from developed countries. Most people in these countries lack even the basic necessities of life and they face chronic hunger and grave deprivation. For achieving improvement in their lives, economic growth is necessary. The enormity of the problems these people face is such that even though more equitable sharing of currently-produced output levels will improve their living conditions somewhat but it may not take them very far.

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