Equity vs. Growth
Not what you're looking for?
For a developing country to grow, it needs capital. The major source of capital in most countries is domestic saving, but the goal of stimulating domestic saving usually is in conflict with government policies aimed at reducing inequality in the distribution of income. Comment on this trade-off between equity and growth. How would you go about resolving the issue if you were the president of a small, poor country?
Purchase this Solution
Solution Summary
This posting gives you an in-depth insight into Equity vs. Growth
Solution Preview
Step 1
There is a misunderstanding that economic growth leads to increase in inequality in income and wealth. This is not necessarily true. Inclusive growth is possible. Still, there is the strong perception that economic growth leads to greater income and wealth for the rich.
One reason for this is that in several small countries when the government is confronted with tough issues like inflation, governance, and increasing poverty, they point to high growth rates. They behave as if the high ...
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.