Is Growth Incomplete Without Social Progress?

Poverty is concentrated in middle-income nations, explains Ejaz Ghani, World Bank economic advisor, writing for Project Syndicate. Poverty-reduction programs struggle to keep pace with population growth and rising wage inequality, though growth can ease the effects of income inequality. Income growth contributes to higher rates of education and literacy, yet poverty lingers in nations with entrenched gender discrimination. “The paradox of South Asia is that growth has been instrumental in reducing poverty and improving social outcomes, but poverty rates and social outcomes have not improved fast enough to reduce the total number of people living in misery,” Ghani notes. He urges direct policy interventions to end gender discrimination and improve economic opportunities. Social disparities need not accompany rapid growth. “A development strategy that promotes growth first, and only then deals with human misery, is not sustainable,” he concludes. “Policies designed to make redistribution more efficient need not hamper growth itself.” – YaleGlobal