The Developer's Dilemma: Structural Transformation, Inequality Dynamics, and Inclusive Growth

Developing countries seek broad-based, inclusive economic development that raises the income of all, especially the poor. The Developer's Dilemma explores the tension between this aim and the hypothesis that economic development tends to put upward pressure on income inequality, at least initially and in the absence of countervailing policies.

Format: Hardback
Length: 336 pages
Publication date: 02 August 2022
Publisher: Oxford University Press

Developing countries strive for economic development that aims to improve the income of all, particularly the underprivileged. However, this goal contradicts Simon Kuznets' hypothesis, which suggests that economic development initially leads to increased income inequality, unless countervailing policies are implemented. The Developer's Dilemma delves into this Kuznetsian tension between structural transformation and income inequality. The book explores the various types of structural transformations experienced in developing countries and examines the inequality dynamics associated with each transformation. It also assesses the policies employed to balance trade-offs between structural transformation, income inequality, and inclusive growth.

Across nine country cases authored by academics from across the Global South, the book employs a comparative case study approach, utilizing a common analytical framework and standardized datasets. The primary intellectual contribution of the book is to conduct a comprehensive comparative analysis of the relationship between structural transformation, income inequality, and inclusive growth. This analysis is conducted empirically at both regional and national levels, drawing conclusions about the different varieties of structural transformation, their inequality dynamics, and the policies employed to address the developer's dilemma.

The book's findings shed light on the complex interplay between economic development, structural change, and social welfare. It emphasizes the importance of policies that promote inclusive growth, such as investment in education, healthcare, and social protection, to mitigate the negative effects of structural transformation on income inequality. The book also highlights the need for policymakers to address the specific challenges faced by different regions and countries, considering their unique economic, social, and political contexts.

In conclusion, The Developer's Dilemma is a valuable resource for scholars, policymakers, and practitioners interested in understanding the dynamics of economic development, income inequality, and inclusive growth. By providing a comparative analysis of nine country cases, the book offers insights into the varieties of structural transformation, their inequality dynamics, and the policies employed to manage the developer's dilemma. This knowledge is crucial for designing effective strategies to promote sustainable and equitable economic growth in developing countries.

Weight: 660g
Dimension: 240 x 161 x 24 (mm)
ISBN-13: 9780192855299