Random readings on society, politics and change – Jorge Carrillo
This paper focuses on income inequality in Asia, its drivers and policies to combat it. It finds that income inequality has risen in most of Asia, in contrast to many regions. While in the past, rapid growth in Asia has come with equitable distribution of the gains, more recently fast-growing Asian economies have been unable to replicate the “growth with equity” miracle. There is a growing consensus that high levels of inequality can hamper the pace and sustainability of growth. The paper argues that policies could have a substantial effect on reversing the trend of rising inequality. Higher social sector spending, education spending, and capital expenditure, are associated with higher income inequality in Asia (contrary to the rest of the world), due to weak coverage and the benefits disproportionately accruing to those at the higher end of the income distribution
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