Dynamics of Income Distribution in a Market Economy: Possibilities for Poverty Alleviation

2020 ◽  
pp. 491-522
Author(s):  
Khalid Saeed
Keyword(s):  
Income Distribution ◽  
Market Economy ◽  
Poverty Alleviation

James Meade's Liberalism

2012 ◽  
pp. 61-74
Author(s):  
Roger E. Backhouse
Keyword(s):  
Economic Theory ◽  
Income Distribution ◽  
Market Economy

James Meade described himself as a liberal and used the term neo-classical to describe his economic theory but unlike many liberals he sought to improve the market economy. This paper explores Meade's liberalism through analyzing his writings on planning, the market, justice and income distribution, concluding that he is best described, somewhat paradoxically, as a pragmatic visionary.

scholarly journals Simulating the Impact of Income Distribution on Poverty Reduction

2015 ◽  
Vol 54 (4I-II) ◽  
pp. 931-944
Author(s):  
Syed Kalim Hyder ◽  
Qazi Masood Ahmed ◽  
Haroon Jamal
Keyword(s):  
Economic Growth ◽  
Income Distribution ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Main Tool ◽  
High Growth ◽  
Quality Data ◽  
Necessary Condition ◽  
The Impact ◽  
Trickle Down

The traditional notion that has influenced the development thinking for almost half a century is that economic growth is fundamental to the development process, and that the objective of poverty reduction can only be achieved by allowing the benefits of growth to ultimately trickle down to the poor. The „primacy of growth‟ paradigm is based on the premise that high growth, through high investment, would lead to higher employment and higher wages, and thereby reducing poverty. The „trickle-down‟ paradigm assumes that the benefits of economic growth would, in the first round, accrue to the upper income groups, and the ensuing consumption expenditures of these households would, in subsequent rounds, accrue incomes to relatively lower income households. Importance of equity consideration in poverty alleviation efforts has been brought out of the cold and now has re-entered the mainstream development policy agenda in many developing countries. This is the consequence of a deep-rooted disillusionment with the development paradigm which placed exclusive emphasis on the pursuit of growth. During 1990s, the proliferation of quality data on income distribution from a number of countries has allowed rigorous empirical testing of standing debates on the relative importance of growth and redistribution in poverty reduction. While the debate is still inconclusive, the majority of development economists emphasised, based on empirical cross-country data, that an unequal income distribution is a serious impediment to effective poverty alleviation [Ravallion (1997, 2001)]. Many researchers suggested that growth is, in practice the main tool for fighting poverty. However, they also reiterated that the imperative of growth for combating poverty should not be misinterpreted to mean that “growth is all that matters”. Growth is a necessary condition for poverty alleviation, no doubt, but inequality also matters and should also be on the development agenda

Foreign Direct Investment as a Tool for Poverty Alleviation

2016 ◽  
pp. 127-137
Author(s):  
James Rossi ◽  
Genevieve Dupont
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Income Inequality ◽  
Income Distribution ◽  
Poverty Alleviation ◽  
Direct Investment ◽  
Previous Literature ◽  
Absolute Poverty ◽  
The Relationship

It has been argued that “Absolute poverty can be alleviated if at least two conditions are met. First, economic growth must occur—or mean income must rise—on a sustained basis. Second, economic growth must be neutral with respect to income distribution or reduce income inequality.” By way of reference to current and previous literature on economic development, this chapter aims to investigate the relationship between poverty, economic growth, and income distribution, as a means of mitigating gaps in the literature on the topic, as well as contributing to the literature of Foreign Direct Investment as a tool for poverty alleviation.

Systemic Failure, Complexity, and Public Policies

2020 ◽  
pp. 113-137
Author(s):  
Vito Tanzi
Keyword(s):  
Quality Of Life ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Income Distribution ◽  
Market Economy ◽  
Multiple Objectives ◽  
Modern World ◽  
Public Programs ◽  
Technological World

This chapter addresses the issue of systemic failure and the role that complexity often plays. While the quality of life has risen in the modern world, many daily operations are not as simple as they used to be. The chapter describes several examples of failures (a) in the technological world; (b) in the financial world; and (c) in the economic world. To say that a market economy is self regulating has been proven to be an illusion. The growth of complexity has affected market economies in various ways. Governments’ pursuit of multiple objectives has been one of the major contributors to the complexity: tax systems have become increasingly opaque, open to different interpretation and abuses, as have several public programs. The results of fiscal policy and monetary policy have become more difficult to determine. Complexity has influenced the income distribution by creating asymmetric opportunities for manipulating systems.

Markets, Poverty Alleviation, and Income Distribution: An Assessment of Neoliberal Claims

1991 ◽  
Vol 5 ◽  
pp. 175-196 ◽  
Author(s):  
Stephan Haggard
Keyword(s):  
Income Distribution ◽  
Latin American ◽  
Poverty Alleviation ◽  
Industrialized Countries ◽  
Positive Role ◽  
Newly Industrialized Countries ◽  
The Poor ◽  
Policy Making Process ◽  
Market Driven ◽  
Latin American Countries

If individuals are such rational and maximizing agents, why has history demonstrated that government intervention in economics plays a consistently positive role in a developing country's economic performance? This article emphasizes the inevitable link of the political arena with progress of economic success, primarily in the developing world, thereby rejecting the neoclassical view of pure market-driven economics. The author highlights the market-oriented accomplishments of the Asian NICs (Newly Industrialized Countries) and some Latin American countries, such as Argentina, Brazil, Chile, Uruguay, and Turkey, pointing out time periods when authoritarian regimes acted as indisputable impetus for economic growth spurts in these countries. Because the poor are afflicted most heavily during transition periods, the author advocates that governments ensure the involvement of the poor not only in the market reforms but most importantly in the policy-making process. Governments must ensure proper allocation of national resources, income distribution, and commitment to poverty alleviation through direct intervention in the economy to stimulate growth and success. Under these circumstances, Haggard concludes, the poor will demonstrate a higher level of success in the emerging economies than many expect.

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