Effects of Inequality on Growth and Development

Effects of Inequality on Growth and Development

Thursday, April 26, 2007 – 08:23

CGD president Nancy Birdsall reviews a large body of work, primarily of economists, that shows that high levels of inequality in developing countries are likely to inhibit growth.

CGD president Nancy Birdsall reviews a large body of work, primarily of economists, that shows that high levels of inequality in developing countries are likely to inhibit growth. She argues that high income inequality can discourage the evolution of the economic and political institutions associated with accountable government and can undermine the civic and social life that sustains effective collective decision-making, especially in multi-ethnic settings.

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