Inequality, in economic terms, can be inefficient as well as unfair. Indeed, policymakers increasingly recognise that extreme inequality may represent a threat to long-term economic and social development. As a result, there is now more effort being made to look beyond GDP growth figures to see how the benefits of economic development are distributed.
While a degree of inequality may signal positive incentives to invest, innovate, take risks and work hard; inequality beyond a certain level can cause an inequality of opportunity that hampers social mobility and weakens incentives to invest.
This session explores policy priorities to match economic efficiency with fairness and looks at strategies to stimulate robust and inclusive economic growth through three main channels:
·Redistribution, public goods and services.
© UNOPS / John Rae