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Questions of equity and inequality have moved to the center of
debates on development and poverty reduction. This reflects growing
awareness that even countries with high rates of growth can
experience stagnating or increasing inequality, and that inequality
can itself limit the poverty reducing effects of growth. Indeed,
recent work indicates that, in addition to its intrinsic value,
equity should be valued for its positive impacts on growth and the
poverty-reducing effects of such growth. These concerns are coupled
with questions of governance. This is because institutional
arrangements affect not only overall rates of growth but also the
distributional effects of growth, and are themselves more or less
equitable in their structure and functioning. How given
institutional arrangements emerge over time, with their
implications for growth and equity, remains less understood.
'Institutional Pathways to Equity: Addressing Inequality Traps'
tackles the relationship between equity and development, the place
of institutions in determining these relationships, and the
conditions under which particular institutional arrangements can
either block or promote transitions toward more equitable forms of
development. The chapters, originally commissioned as background
documents for the preparation of the World Development Report 2006,
are prepared by leading scholars from the fields of economics,
political science, sociology, geography, and development studies.
The book speaks directly to current discussions on inequality,
poverty, and growth and will contribute to the construction of a
historically informed political economy of development. The book
specifically highlights the importance of inequality, institutional
change through social mobilization, and institutional change
through state policies. The authors show that, under certain
conditions, state institutions can and have taken a leading role in
promoting policies to redress inequitable social relations and so
weaken the social foundations of inequality traps.
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